The blockchain is a distributed database that guarantees secure and transparent transactions. It’s created by a chain of recorded transactions that are stored and maintained across several databases. By enabling new levels of transparency, accountability and security, blockchain has the potential to transform many industries, including ours.
The rising popularity of online casino games has sparked renewed interest in how the industry handles its money. Could the number of new players entering the online sphere outgrow the capacity of current systems? We discuss what blockchain technology means for the future of online gambling.
The Wonders of Blockchain Technology
So, how does blockchain technology affect online casinos? From enabling cheaper and instantaneous transactions to providing full transparency and financial autonomy, there are many advantages of decentralized finance that could revolutionize the gambling industry. Assisted by cryptocurrencies (Bitcoin and Ethereum,) it moves away from traditional banking toward individual financial power. Simply put, it eradicates the middleman (banks) and allows users autonomy over their finances.
A trillion-dollar industry, online casinos are experiencing unprecedented growth. While the growth of online casino games is a positive development for the industry, it also comes with its perils. Riddled with scammers, fraud and cheaters, gamblers have become wary of the dark side of the internet, causing many to seek other ways of handling their money. By eliminating third parties and the need to share your personal details (bank details, address and password,) the blockchain is fast becoming the solution for advanced online safety and security. That said, many experts are asking whether crypto gambling is a mere bubble or if it has a lasting future. We discuss the pros and cons of merging blockchain and gambling.
Advantages
For the majority of gamblers, playing at an online casino for real money requires them to provide the site with sensitive, personal information, which, in the wrong hands, could result in various forms of identity theft. By requiring minimal information, decentralized finance eliminates this danger.
Transparency is another major advantage. Through digital signatures, decentralized ledgers, time stamping and immutable records, the system ensures that wagers and payouts can be traced and verified by anyone, which makes the transaction secure and eliminates unwelcome opportunists looking to collect data to fraudulent ends.
Additionally, this transparency will hold casinos accountable for the way in which they handle money and allow users to put more trust in online sites, enabling faster and cheaper transactions (by cutting out the middlemen) worldwide. If, for instance, you’re traveling abroad and playing a live dealer online casino game through a local site, your winnings will no longer require three to five working days to reach your foreign account. It will reflect in a matter of seconds.
Improved security is another advantage of blockchain technology. While each transaction is encrypted, the fact that it’s detached from centralized processes means that third parties will no longer store your data.
Disadvantages
Impressive as it may be, it’s important to keep in mind that blockchain technology is still in its early phases of development. The truth is that no one knows what cryptocurrencies mean for the future of casino payments, leaving many industries (and individuals) cautious to use the blockchain.
Another growing concern is storage. Because it’s only been adopted by a fraction of the world’s population, many are uncertain whether it will cope with mass participation. Its environmental implications raise additional questions. To maintain its service, high-powered systems that run 24/7 will be required across the world.
How Is It Used in Online Gambling?
The inclusion of smart contracts, which is prevalent in the blockchain, is being used by casinos to prove that their games are neither manipulated nor rigged. Additionally, bonuses and rewards are also being reinvented, allowing casinos to adopt a more flexible and creative rewards system tailored to the individual.
Improved security and privacy not only enhance transparency but also make both the casino and gambler accountable for their transactions. The consequences for the gambling industry are immense. Not only does blockchain make casino sites more trustworthy in the eyes of the customer, but it also minimizes the anxiety associated with payments and providing sensitive information.
How To Start Gambling with Blockchain
- Set up a cryptocurrency wallet.
- Buy cryptocurrencies – make sure it’s either Bitcoin or Ethereum.
- Find a digital casino that accepts cryptocurrencies, such as BetMGM.
- Create an account on your selected casino site.
- Deposit your cryptocurrencies via your crypto wallet.
- Start gambling.
If you’re wondering whether this is limited to certain casino games, fear not. From fantasy-themed slots to casino table games such as roulette and poker, blockchain transactions are compatible with every game.
Utilize Blockchain Technology on BetMGM
Innovative and avant-garde, BetMGM proudly welcomes the use of cryptocurrencies. Enjoy the luxury of playing from the comfort of home or on the go. Register today and choose from our selection of themed tables, bonuses and the best live dealer online casino games.
From online slots and bingo to poker, roulette and blackjack, play from anywhere, anytime. Whether you want to play with friends or on your own, BetMGM gives you access to a vast range of exciting casino games.
