Gambling is considered one of the oldest traditions of mankind, regardless of culture or civilization. One of the first modern casinos was opened in Las Vegas in 1933, and since that time gambling has been gained popularity every year.
With the invention of the internet, online casinos, lotteries and games have appeared and have become available for almost everyone. However, the main problem of fair gambling by online lotteries or casinos has arisen simultaneously with them. Unlike traditional slot machines or bingo, in online games, people have digital access only to the information conveyed to them. With gaming machines, it’s harder because it requires redrawing and mechanically modifying, while as for an online casino, rewriting a few lines of code is not a difficult task. The lack of trust and confidence has put online gambling games far from traditional ones for a long time.
But what if we tell you innovative technology for fair gambling is already here? The name of this innovative solution is blockchain. Online casinos and games based on blockchain are becoming an increasingly popular trend on the internet. We are going to uncover what blockchain is and how it works for the gambling industry.
Blockchain Technology in a Nutshell
In general, information like the results of games, winnings and payouts is controlled by the owners and hidden from the public, but blockchain can help online gambling games reach a completely new level of trust among users.
The main benefit of blockchain is underlaid in the mechanism of how information is stored. Blockchain is a technology allowing logging and storage of information on an encrypted digital ledger. The info is recorded sequentially, and the data is publicly available and unchangeable. Blockchain is a decentralized system meaning information is not stored in a single central place and controlled by one person or group. The risk of hacking is minimized, and if/when it happens, the digital ledger remains accessible.
The advantages of these basic principles help online casinos, lotteries and gambling games based on cryptographic technologies use transparency and accountability and prove their fairness to players. They want to show they do not interfere in the process of the game, and try to gain a competitive advantage over their centralized rivals.
Aside from making the gambling business more trustworthy, blockchain has a lot of benefits for users as fast transactions via crypto currencies, personal information security and player’s privacy.
The New Level of Gambling Industry with Blockchain
There’s no doubt the integration of blockchain into the gambling industry solves many problems online casinos and other games have been facing since their online birth.
Let’s uncover what blockchain promises to change:
Transparency of Information
When people play and bet, online casinos and games make money. There’s no money without users engaging in the games. The ultimate purpose of implementing blockchain is to keep customers. Before blockchain, there was no transparency on what actually happens “under the counter”.
The implementation of blockchain changes the situation and makes online casinos trusted places for gambling. All of the records are kept on a digital ledger ensuring transparency of info.
Fraud has led to losses in every industry; the gambling sector is no exception. When the system is hacked, customers can not only use their money, but also their personal information can be stolen.
With blockchain, this is a problem of the past. Smart contracts allow you to get your winnings immediately. What is more, blockchain security doesn’t allow the bank or third parties confiscate money.
Paying via Crypto currencies
The alternative way of payment is one the biggest benefits of blockchain offering fast payments and ensuring the user’s privacy. The amount of money able to be deposited is unlimited and failed transactions are almost impossible. The costs for withdrawal and deposit are reduced by the use of blockchain technology, thanks to its efficiencies.
To become a player at a traditional casino, users fill out a huge amount of forms, documents and verify their account, making the whole process lengthy and taking a lot of effort. The number of players is usually limited as well.
With the implementation of blockchain, customers don’t need to share their personal information, allowing them to stay anonymous. There’s no chance for hackers to steal user credit card numbers or other related info.
Using digital currency gives more freedom to players; they have access to games everywhere through their Internet connection. The decentralized system of blockchain ensures security and inalterability of data and allows everyone to be a member of an online game or casino.
The gambling industry is a popular, but picky industry. In some cases, it has aroused suspicion among players affecting trust of online casinos or games in general.The integration of blockchain into the gambling and betting industry solves many problems online casinos and sports-books have been facing since their inception. The important benefit of blockchain is its transparency of information and the impossibility to change it. This gives the opportunity to the gambling industry to become a fair and profitable pleasure, as it never has been before.
How can Blockchain Create Provable Fairness in the Gambling Industry? was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.