The latest blockchain technology is being introduced across various industries worldwide, from banks to IT organizations. But what is it and how are casinos using the technology, and what are the notable effects? We look at the technology basics before getting to know the impact the technology has on the gaming industry and how it might develop in the coming years.
Understanding Blockchain Technology
Simply, it is a spread out, digital public ledger of every transaction that happens using cryptocurrency. It keeps growing once more blocks get added to it, allowing one to keep an eye on their transactions, yet they are not held in a central place like in banks.
Initially, the technology was developed for a cryptocurrency known as Bitcoin and allowed users to verify their transactions, and the records are unchangeable. The technology was meant for cryptocurrencies to ensure every transaction has no possibility of duplicating or deleting.
Most people have been impressed by the technology due to its anonymity and independence from governments and banks.
Currently, the law states that any player intending to deposit money into their online accounts proves they have sufficient money. On the other hand, once they accept cryptographic coins, the transaction happens anonymously, which is against the regulations and transparency needed in the industry.
Additionally, when one uses cryptocurrency as a payment mode, you are not guaranteed its value since Bitcoin is renowned for its decreases and increases in value. The technology does not offer gamblers a practical, immediate solution for their gambling funds.
Most individuals refer to Bitcoin investment as the same as gambling in casinos. On the other hand, while throwing a casino dice, for example, it requires a player to understand and strategize to be successful, an approach to be considered while investing in cryptocurrency could prove futile. Due to its absolute instability, it saw it crumble 40% in value within 24 hours.
The unpredictable and uncontrollable nature of cryptocurrency makes it impossible to make profits if you don’t have an investment strategy. The gambling commission approved cryptocurrency use in the gambling industry. However, there have been concerns about how well the casinos will control due to the high risks of cryptocurrencies.
While one can use digital currencies, those using virtual currencies need to ensure they have additional policies to trim down any breach of license or money-laundering activities.
The Story so far on Blockchain in Casinos
One of the best things about this technology is that it can be transparent when necessary. The problem of online casinos is a lack of trust between the house and the player. Players are not aware of the interface of the game, even when a casino is reputable. Gambling businesses do not matter if they are run offline or online since they are all subject to the same rules and regulations.
We peep at how Blockchain can solve some of the problems. Once payments are decentralized, nobody can interfere with the prize pool and the player. The technology allows the building of everything on smart contracts. Each game allows direct interaction between two players through a smart contract or between a single player with a smart contract.
The house does not manage the money-making everything transparently. Pay-outs are instant the moment a player wins.
Blockchain has solved the lack of randomness in some fraudulent casinos. The technology ensures every transaction, spin, or roll of dice is transparent since you can check after playing.
The code developers publish source codes for their projects, enabling everyone to look into the code and confirm it.
Other harmful practices used to spam players will be a thing of the past once casinos are fully decentralized courtesy of the technology, since you don’t need an email to register. All you need is a Blockchain address, and you are ready to start playing.
Challenges Blockchain Technology is Facing in the Industry
Regulatory concerns are surrounding the technology within the industry. For instance, regulators and operators will be required to allow remote gambling pieces of equipment potentially stationed in multiple locations.
Equally, regulators and third-parties mandated with testing organizations’ responsibility will have to develop new standards and protocols to test blockchain-based activities.
The other primary concern is the issue of anonymity. Although most people love technology due to the feature, regulators may have a problem with it. Anonymous gambling could limit how effective they check age limits for gamblers and could be used to launder money.
Apart from regulations, there are significant concerns on how Blockchain will be implemented. There is the fear of it being misused and how the public will be made aware of cryptocurrencies.
Blockchain Influence on the Casino Industry
Digital currencies have been the central point of discussion ever since they were launched in the market. It has transformed how people used to view cryptocurrencies. The growth in online casinos could be positively impacted by technology. Utilizing innovations casinos is normal, especially if you consider the level of security required.
The usage of Blockchain is a plus due to its transparency, safe money transactions, and trustworthiness. Users can conduct transactions using their preferred cryptocurrencies for casinos that have adopted paying using the currencies.
Apart from the safety, the transactions charge a low fee, which is an advantage to gamblers.
Ability to Play Anywhere
For gamers who want to participate in casino games anonymously, Blockchain does precisely that. Users can play without confirming their identity or email. Using crypto, you can play and withdraw money easily and fast. The other advantage of the technology is the Pay-As-You-Go system, which is ideal for casinos.
Blockchain Technology is the Future of Casinos
Using Blockchain will help solve most of the issues experienced in new casinos. As for user experience, there could be many advantages for casinos that adopt the technology.
It is still uncertain when the usage will become widespread in the casino business. But it is one of the best moves the industry could adopt. There is so much to hold out for in the gambling space, and given the offerings of blockchain, it certainly promises much better opportunities for parties involved.