Cryptocurrency Taking Over Online Gambling?Published December 29, 2021 by Sol FH
Online gambling with cryptocurrency is a trend that seems to be staying, but could it spell doom for FIAT currency gambling?
The gambling industry, which is worth $423 billion, is embracing blockchain technology to offer new forms of playing online casino games. Blockchain can offer an added layer of security to the gambling industry. The blockchain is what makes gambling with cryptocurrencies possible. The blockchain is an immutable and public ledger that records transactions. It can’t be tampered with and it can be accessed by anyone through a secure connection like SSL (Secure Socket Layer).
Blockchain is the technology behind bitcoin and other cryptocurrencies. It’s called a “distributed ledger” because it records transactions in a secure, public format that is accessible to anyone on the internet.
Cryptocurrencies are digital currencies that aren’t regulated by any central authority or bank; they’re decentralized, which means that they operate on a peer-to-peer network. All transactions happen between two parties without any intermediaries like banks and governments - all you need is an internet connection and a cryptocurrency wallet to send and receive cryptocurrency.
Gambling with cryptocurrency is a new trend that doesn’t seem that is going to stop. This is happening because of blockchain. Blockchain provides a transparent, decentralized, and secure system where people can use it without going through a third party.
Many online casinos are either switching from fiat currencies to cryptocurrencies as the preferred payment method for players because of the high conversion rates and lower fees. Hundreds of casinos have at the very least started accepting crypto deposits. The casinos also don’t have to worry about any kind of chargebacks or frauds as there is no card data stored on the blockchain network and all transactions can be performed anonymously.
Each transaction is stored as a “block” on the chain and each and every transaction is verified and time-stamped by everyone on the blockchain. Every single sequence of blocks is unique, which is why it is often associated with a fingerprint. This enables traditionally untrustworthy partners (gambling operators and gamblers) to trust each other thanks to the inherent security and anonymity that this new technology provides.
Why did Crypto Gambling Start?
There has always been a healthy distrust by players making deposits into their online casino accounts. Fears of being hacked, or becoming victims of fraud have always been present, but, thanks to blockchain technology, the likeliness of this happening is far less.
With the blockchain, casino operators and casino players can see every single transaction because they are all listed on the ledger. No names or contact information is available, but the transaction ID, timestamp, and other details are. This also means that no transaction can be altered or manipulated.
Players do not need to provide even one piece of personal information when using cryptocurrency. Traditionally, players must be verified and their banking details provided. This information can be taken off the casino's server or there can be man-in-the-middle attacks, among others.
Traditionally, if a player wins, it may take days or even weeks to see the winnings. A lot of that wait time has to do with the dependence on a third-party financial institution or a bank that must also process the withdrawal. With blockchain, transactions are literally verified in a matter of seconds.
The blockchain and cryptocurrencies have a very bright future for online gambling, VR casinos, Metaverse casinos, and could even become the primary source of funding for operators in the future. The entire market is making a huge shift to keep up with the innovation being seen in the blockchain space around the world. NFTs are becoming a household term, Bitcoin is now covered on financial news stations and is discussed every day. Cryptocurrency is here to stay and we have only cracked the surface of what blockchain technology can do for us.