The Undeniable Benefits of Blockchain for Online Gaming
With the advance in mobile technology and the ever-increasing coverage of mobile data and wireless internet, online casinos’ popularity is on an astronomical rise. From 2012 – 2019, the online gambling market has grown at a compound annual rate of 9% and this is no surprise when you see the sheer volume of newer casino sites coming to the market. Extraordinarily, this is three times higher than that of global GDP.
With such a rise comes a greater responsibility of gambling companies to provide a fun, safe, and secure online environment in which gamblers can play online at low risk. That’s where blockchain technology comes in. This post explores the undeniable benefits of blockchain for online casinos and how they’re using the technology to protect their customers’ data and payments.
What is Blockchain?
Simply, blockchain technology is an Internet-based immutable ledger that secures data and payment records. Online casinos started using blockchain technology by using smart contracts to lock bets during games and process payments. Today, much of the online casino industry is built on blockchain.
What are the benefits of Blockchain?
Blockchain technology has many benefits to both customers and businesses alike. For online casinos, the undeniable benefits of blockchain include:
Generally, people don’t trust online casinos and betting companies that they have never used before. Banks also have a mistrust of online casinos and have been known to block people’s accounts if they make too many bets. Blockchain increases the transparency of online gambling sites because it allows everyone to see the history of all transactions. Moreover, blockchain’s crypto-empowered open-source algorithms do a great job eliminating fraud.
Blockchain virtually eliminates fraud and facilitates secure online transactions between the player and the betting company. In addition to payments, blockchain technology protects users from the gambling industry’s questionable practices, particularly concerning luck, as all dice rolls and bets can be checked on blockchain. A customer’s details are also kept securely on blockchain and cannot be stolen by hackers or any other online users.
Regarding online gambling, blockchain technology allows interactions between gambling sites and cryptocurrencies. Essentially, this means that gamblers can pay for their bets using cryptocurrency, meaning they can cut out third-party intermediaries such as banks and other payment providers. Paying for your bets with cryptocurrency ensures anonymity and is increasingly becoming a more popular way that online casinos receive income from their customers.
We’ve touched on it in the last point regarding cryptocurrency, but more generally speaking, blockchain technology supports user anonymity. Many people who gamble online want to keep their identities hidden and blockchain makes this possible. With the availability of cryptocurrency, all an online gambler now needs is an account with access to an online wallet. They can deposit money to gamble and withdraw money when they win.
Reduced House Edge Costs
Blockchain technology reduces the house edge costs associated with online gambling. House edge costs refer to payments such as salaries and other maintenance costs related to running a casino. As blockchain takes away many of these costs, it means there is more money available for players to win, and equally, more profits to be made by the casino or passed onto customers in the form of bigger casino bonuses like the ones you’ll find online. As the online market is so competitive, every saving a casino can make is essential, and as such blockchain is leading the charge as one of the key areas casinos are currently researching.
Blockchain technology is undeniably a good thing for online casinos and customers alike. By utilising blockchain, online casinos benefit from greater transparency and improved security while delivering a much better service to online customers by increasing payment options. Blockchain is undeniably an excellent technology for online casinos and many other online businesses, for that matter.