Online gambling is part of a massive entertainment industry that was born many years ago but still continues to grow. Unfortunately, traditional online casinos have always been pretty unsafe.
However, blockchain technology and decentralization seem ideal for solving this issue. Actually, they’re seen as the next natural phase in the industry’s development.
Blockchain technology is a popular decentralized ledger with countless applications in multiple sectors. It facilitates different processes, from recording transactions to tracking assets.
Now, many claim that the gambling industry can benefit from decentralization and blockchain technology in terms of security and transparency.
Is this true? What can decentralization do for this industry? What are the potential benefits? Read on to find the answers!
What Is Decentralized Gambling?
A new definition has emerged and started to gain popularity: decentralized gambling. Essentially, it’s what you already know – getting involved in games or activities where you risk something valuable in order to make money – with elements of blockchain technology.
Decentralized gambling involves digital transactions with tokens, which occur on an encrypted blockchain network.
As mentioned, the blockchain is a public ledger. Therefore, decentralization in online gambling can help keep online wagers’ integrity and protect both data and transactions.
Besides making every transaction visible to the public, decentralization can remove standard fees charged by traditional banking methods and make the experience even more affordable and accessible.
There are two common elements when it comes to decentralized gambling: crypto casino games and smart contracts. Check out the benefits that both bring to the industry below!
Benefits of Using Cryptocurrencies for Online Casino Gaming
Thanks to the blockchain technology and decentralization factor that they possess, cryptocurrencies offer many benefits to online casino gaming. These are:
No Official Governing Body
One of the main advantages of decentralization over cryptocurrencies and casino games is that there is no entity or figure governing them. Users have full control over their funds.
Also, no authority agency or individual can take away users’ cryptocurrencies or freeze their accounts. As a player, you can fully operate all required transactions.
If you need to make a casino deposit or withdraw your winnings and use cryptocurrencies, there will be little to no fees on each transaction. This happens because there are no middlemen in the process.
Although several casinos charge fees, they’re usually low. Also, even if you have to pay extra costs for using cryptocurrencies, you can enjoy a faster transaction, which is also worth spending a few pennies.
Compared to bank transfers, crypto wallet services also offer much faster transactions. As a result, players can transfer or withdraw funds from their casino accounts in no time.
If you use a crypto wallet, you can be sure your personal data won’t be attached to your transactions, as often happens with credit cards. Instead, your withdrawals and deposits are anonymous.
Since you don’t have to submit personal data, crypto transactions can protect you from identity theft. Also, there are no chargebacks after you send transactions, as they’re immutable and unalterable. As a result, there are fewer risks for online gamblers.
Benefits of Using Smart Contracts for Online Casino Gambling
Smart contracts are pieces of code stored on the blockchain as software programs. At a basic level, they store different rules and respond to certain events with specific actions.
If a decentralized online casino uses a smart contract, when winning a game, it will release your winning funds, for example.
In addition, smart contracts can verify that an event that supposedly occurred did or didn’t happen. However, these programs don’t require human involvement. They’re self-executable.
Like cryptocurrencies, smart contracts are also immutable and can be verified by anyone on the network.
Now, these pieces of code have been introduced to the online gambling industry. Therefore, gamblers can try their favorite games without risking their cash or personal data through casinos’ traditional processes, which are unreliable.
Smart contracts allow users to feel safe and knowledgeable when they put their hard-earned money in a casino. In addition, these programs offer the following benefits:
Nobody can manipulate a smart contract. Once it starts, it’s unalterable and cannot be manipulated by any company or individual.
Casinos that use smart contracts put the same amount of control on gamblers’ hands. You’ll have the same level of knowledge as the company.
No Human Interference
With smart contracts, which are fully automated, you can hold funds and earnings or losses away from you. However, there’s no human intervention during the process.
Smart contracts also make casino transactions more transparent. As a player, you can be sure you won’t be scammed. Everything is out in the open.
Like cryptocurrencies, smart contracts allow anonymous transactions. As a result, there’s no risk of exposing sensitive data or your identity to potential theft.
No Government Control
Also, thanks to decentralization, no company, government agency, or individual can exercise authority or interfere during the execution of the smart contract.
The Future of the Gambling Industry
Although the future of online gambling could be affected by different factors, most perspectives view decentralization as a key actor in the industry’s development.
Keeping their funds and winnings in digital wallets or making transfers through cryptocurrencies offers many benefits to gamblers. From increased security and privacy to enhanced control and transparency, blockchain technology brings many advantages.
Furthermore, the future of the online casino industry is driven by payment safety, anonymity, and data privacy trends. If there’s something that can provide all these benefits, it’s the decentralization of blockchain technology and cryptocurrencies.
Fortunately, more and more online casinos have turned to crypto. Most are accessible from any tablet, computer, mobile device, and laptop. Therefore, gamblers can play their favorite games from anywhere in the world.
However, blockchain technology now makes this experience more secure, transparent, and enjoyable.
In addition, the blockchain and cryptocurrency world is vastly developing, which means you can’t see what the future holds. Decentralization may even bring many more benefits to the online gambling industry in the following years.