Did you know that the iGaming industry has been one of the first to adopt the blockchain and cryptocurrency? With institutional investors endorsing the cryptos and companies like Tesla investing in the Bitcoin, things look positive for crypto prices. Bitcoin had gone mainstream only recently, and together with this development, online casinos have started accepting cryptos now more than ever. The biggest advantage of using blockchain in iGaming or online gambling and betting is the transparency it guarantees to database transactions.
How does the Blockchain and Crypto Play a Role in the iGaming Industry?
Blockchain is essentially a public ledger in which data gets stored in blocks and chained through cryptography. The idea behind the Bitcoin was to have a decentralized payment network which would not need third party validation. Rather, transactions were to be validated through a consensus amongst nodes spread all across the globe. It is the network of “miners” which compete against one another to validate blocks and win rewards in the form of cryptos. This explains why it is impossible to erase or change data of previous transactions. For that, majority of miners must agree and this makes it practically impossible. So, there is no one point of failure and the blockchain is immutable.
Today, you will find many open-source lotteries where return-to-player ratios are kept hidden. Players are usually skeptical and believe them to be scam sites. The best way to check is to use the blockchain which shows them how transactions are being processed. So, while gambling, if you lose your money online, you can actually see where this is going. That helps you understand how credible and trustworthy a gambling site is.
Many sites that host non-traditional games like poker or Blackjack are unregulated. As a result, such sites will provide no data as to how winners get chosen and whether winnings are given to players. The blockchain resolves this problem by replacing the need for such regulators. Since transactions made via the blockchain are transparent, you can view your deposits and even those of opponents who have suffered losses and made you richer.
Gambling may have been there for years but cryptos tend to attract the younger, tech-savvy population more. Gamblers gamble mainly for the thrill and will not be afraid of losing money. But for the new generation, things are different; they want to see returns. For such young crowds, cryptos are appealing. They can transact using cryptos just like Forex trading. If they can invest in cryptos and hold onto these for the long haul, they will enjoy significant returns.
Risks of using cryptos instead of fiat for gambling are not different because you can get scammed in both by lesser-known websites. However, it is possible to reduce such risks by choosing to play only on reliable gambling sites. When games are hosted by sites that are regularly audited, you can hope to be protected against frauds and scams. But this does not stop the website from trying to scam you. They may claim that documents have not been submitted by a player or may refuse to pay even when a player wins. This is where crypto-based gambling helps. You can track and trace funds because they use the blockchain which is a transparent ledger.
Unlike traditional money transfer, crypto transactions are cheaper and quicker. So, gaming site operators can cut down payment handling expenses and players can deposit and withdraw funds easily.