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Blockchain technology was introduced in 2007 and remains one of the best technological inventions to date. One of the main sectors impacted by blockchain, outside of finance, is the gaming industry.
Gambling began centuries ago, and thanks to technology, there are many more bettors today. Search engine trends show that New Zealand internet users search for terms such as best real money online casino, casino strategies and money management tips. In all regions where there is a good Internet connection, casino players and sports bettors have continued to grow.
The most prominent use of cryptocurrency in today’s gambling industry is payment method option. Casinos use Bitcoin and Ethereum as their main sources of deposits and withdrawals. Nevertheless, this article will discuss other effects of blockchain and cryptocurrency on the gambling industry.
What is Blockchain
Blockchain is a technology on which cryptocurrency is based. It uses a public ledger where transactions can be tracked. Each transaction is stored as a block and added to a chain of previous blocks, hence the term “blockchain”.
Once a transaction is added, every computer connected to this blockchain network will be updated. This ensures that there is nothing wrong with this transaction and that the payment is timestamped by all nodes in the blockchain network.
Benefits of Blockchain Technology in the Gambling Industry
Here are the benefits of blockchain technology in the gaming industry:
Cybersecurity and transparency
Using block chain tech offers digital currencies a high level of cybersecurity due to its fundamental characteristics. Each transaction made is added to a ledger. Each node in the blockchain network is notified and the transaction is validated.
The application of blockchain technology in a casino would provide cybersecurity features to help casino operators and players. When online casinos use blockchain technology, they do not need to register on the platform. There is no need to verify identity or submit internet banking information which could lead to data breach by hackers.
In a simplified process, the digital currency would simply be deposited. The user could immediately start playing the casino games. The only information the online casino will hold would be the user’s wallet address.
Cryptos offer increased privacy and anonymity
Many potential casino players worry about placing their personal data on websites. There are risks of data leakage, so they worry about how their data is stored. This is why countries like New Zealand have regulations for casino operations.
The application of cryptocurrency allows casino platforms to remove personal information from users. Indeed, the transactions carried out on the blockchain network are fast. Without requiring personally identifiable information, it will reduce the risk of identity theft for casino players.
Instant and cheaper transactions
One of the reasons cryptocurrencies have risen in value in recent years is because of their super-fast transactions. Digital currencies have no central authority, a hallmark of decentralization, which means payments are peer-to-peer and there are no middlemen.
Since crypto payments are fast, the expense involved is also low. Thus, crypto is a more cost-effective payment option than conventional methods like bank transfers or credit cards. This offers significant benefits to casino players and casino operators.
Once a player deposits into the casino platform, the credit is reflected almost instantly in the account balance. The same thing happens when a withdrawal is made.
By tracking the transaction on the blockchain, the casino player would be able to know whether the transaction was successful or not. The problem with the payment would also be displayed if the payment has not been made.
Blockchain offers transparency
The basis of the blockchain is to ensure the transparency of transactions. Many people are skeptical of casinos and the gambling industry. They believe that gambling companies operate by rigging the system to make money at the expense of their customers.
Since the blockchain comes with a public ledger, the full winning and losing records can be shown to anyone accessing the ledger. In this way, the obscurity of transactions is erased and transparency is ensured. Anyone checking the ledger would also be able to trust the records displayed because they would be immutable.
Blockchain technology has influenced the operations of different sectors, and the gaming industry is no different. The blockchain is an immutable public ledger that records and verifies transactions, allowing users to confirm the authenticity of a transaction.
Blockchain offers several advantages to the gaming industry, including transparency and speed of transactions. Other benefits include reduced transaction fees, improved cybersecurity and anonymity, and transparency.