Blockchain is among the most impressive innovations of this century. Its technology has transformed the world in many different ways. Most essential industries, including gambling, currently utilize its significant benefits in everyday life. This trend is poised to grow since enthusiasts are always discovering the vast possibilities ready for exploration in blockchain technology.
Recently, online gambling has emerged as a great alternative to traditional immersive online games. Also, cryptocurrency gambling has exponentially grown, which does not seem to be slowing. Therefore, we can safely assume that crypto will affect future changes in online gambling. What is Blockchain, and how will it benefit the gaming industry?
What is Blockchain Technology?
Blockchain is a highly decentralized digital record. It contains all the online transactions using digital assets. It is a database that preserves encrypted blocks of data put together to form one chronological ledger of transactions. Every transaction is kept as a “block” and is listed in the existing record, hence the name. Using Blockchain, each new transaction is verified and time-stamped by everyone.
Blockchain technology is usually associated with fingerprints since all sequences of blocks differ from each other. It allows people who do not necessarily trust each other, for instance, securely share sensitive data in the gambling world.
Benefits of Blockchain to the Gambling Industry
The gambling sector has embraced digital payment methods. This trend can be significantly extended by blockchain technology and cryptocurrencies. Blockchain technology can benefit the gambling industry in several ways.
By incorporating Blockchain, NitroCasinos online can boost gambling efficiency, security, cost, and privacy significantly. The following are some of the main reasons why blockchain technology is the future of the online gambling world.
- Enhanced security
Improved security and transparency is arguably the most significant benefit of blockchain technology to online casinos. It is end-to-end encrypted as the databases read and store the transaction data safely. Therefore, it is impossible to edit, change, or manipulate the transactions.
Additionally, users are not obliged to provide any information when conducting cryptocurrency transactions. With blockchain technology, the risk of hacking is significantly reduced as it does not allow illegal assets to be traded.
- Anonymity and privacy
Since most websites request financial and personal information, data privacy is among the biggest worries for online gamblers worldwide. Also, most players prefer keeping their data private. Blockchain technology plays a crucial role in safeguarding and hiding players’ data from any other outside sources. If a player uses a cryptocurrency like Bitcoin or Ethereum, no registration is needed for online gambling. This guarantees the privacy and anonymity of your experience.
In most traditional casinos, you usually see your earnings from playing after several days or weeks. On the other hand, cryptocurrency transfer processes are quick and can be completed within a few minutes. This is because players bypass a third-party financial institution such as a bank when depositing their cryptocurrency into the casino. The Blockchain verifies the verification process within seconds.
Some people perceive the gambling industry to be dangerous. The levels of distrust are exceptionally high if gamblers are playing with cash. Many players who distrust traditional betting services and casinos have a belief that the system is rigged and the winning possibility eliminated.
However, blockchain technology provides legitimacy and prevents fraud since the networks keep records of each payout and gaming transaction. A player’s transactional history and records are displayed transparently.
- Freedom of Gambling
Due to crypto’s confidentiality, anyone in the world has the freedom to gamble as they like. Residents of jurisdictions where gambling is outlawed can place digital bets without any restrictions. Also, since their profiles are hidden, they will not be worried about being identified. Blockchain allows portals to turn down requests for precise data because the shared ledger quickly verifies crypto trades.
Although this is one of the most overlooked benefits of Blockchain, it is among the most important ones. Players can play across borders regardless of currency exchange and without concerns about safety. It enables you to continue playing without authenticating your existence or verifying your mailing address. Blockchain allows gamblers to make deposits and withdraw earnings without hitches from all over the world. Blockchain ubiquity means that it is the future of the gambling industry.
How will Blockchain Shape the Future of Online Casinos?
Blockchain technology’s effect on the world is beginning to move from theoretical to tangible. The gaming landscape is likely to be affected first, primarily due to the omnipresence and frequency of microtransactions. Although these transactions may be minute in size, they account for sizeable amounts of revenue when viewed cumulatively. Blockchain is shaping online gambling in the following ways:
Replacing Traditional Card-Based Online Transactions
Using cryptocurrencies instead of card-based online transactions is the most logical way to incorporate Blockchain into the gambling sector. This will mean that players are no longer dependent on payment systems controlled by financial institutions. Control will firmly lie in the hands of players. This will simultaneously create uniform pricing regardless of a player’s location.
Creating Real-World Assets From In-Game Assets
It is possible to chain in-game assets to the real world through blockchain technology, making them valuable in the real world. For instance, if you buy equipment for your in-game character, the equipment’s value only exists within the game. However, your ownership record becomes tangible and keeps monetary value outside the virtual gaming world through blockchain technology.
Your ownership record would still exist even if the game ‘disappears’ due to some unfortunate events. This would then allow you to transfer the equipment’s worth to a different game. A small economy will emerge over time because of multiple blockchain purchases.
Making Real-World Money From Virtual Currency
Incorporating blockchain technology allows players to make real money from their favorite games. This was recently realized when startup ClanPlay was able to raise almost $800,000 for a system allowing players to earn a cryptocurrency known as ‘Good Game’ that is spendable. Those seemingly endless gaming hours will no longer draw judgmental glances.