There is a lot of buzz about blockchain technology, with people claiming it’s the solution to everything. However, when it comes to online gambling, blockchain technology has moved past the theoretical and is being effectively used to deliver players superior gaming experiences. Buckle up as we show you exactly how blockchain technology is being deployed in the online betting space!
Enhances Fair & Transparent Gambling
A major worry that players have when betting online is that they’re being cheated. They’re convinced that the games have been rigged and the RNG has been manipulated. Blockchain technology has a solution, provably fair! Provably fair is a special algorithm that ensures that every spin on a slot and every hand of blackjack is as random as possible.
With the provably fair algorithm, you can personally check if a casino game is fair or not. This is a massive advantage over online casinos that use RNGs because a casino’s RNG is opaque; you just have to trust the casino’s and the 3rd party tester’s word.
To verify that your bets are fair, you need to:
- Change your client seed so the casino can reveal the server seed used for that session.
- Copy the server seed hash they provided for your bets.
- Paste the server seed they revealed into a hashing tool.
- Check that the output matches the server seed hash, if it does, then the results of the game you played are fair.
Revolutionizes Payments
Without blockchain technology, we wouldn’t have Bitcoin, Ethereum, and all of your other favorite cryptos. Blockchain technology allows players and online casinos to sidestep financial intermediaries and send payments directly to each other. Crypto payments are verified by the network itself and are viewable to the public, which makes them just as if not more secure than traditional payment transfers.
Blockchain technology is also responsible for the super low fees that Bitcoin and other cryptos have. You can literally send thousands of dollars worth of crypto around the world in minutes and pay a few cents. Blockchain technology has supercharged withdrawals, and now you can get your winnings in minutes rather than days. With so many advantages, no wonder crypto gambling is booming!
Backbone of Decentralized Gambling Platforms
By leveraging the power of blockchain technology and specifically the Ethereum network, players no longer have to put trust in a 3rd party casino or betting platform. With decentralized gambling, players can bet against each other using smart contracts without going through a centralized platform. Smart contracts are self-executing digital agreements. They automatically enforce, verify, or facilitate transactions when predefined conditions are met without the need for intermediaries, enhancing trust and security.
Decentralized gambling platforms allow you to have a 100% anonymous yet at the same time secure gaming experience. You don’t have to share any personal information, and the payouts are automated via the smart contracts. You can also verify the fairness of any games via the open-source blockchain. Decentralized gambling platforms are still in their infancy but will undoubtedly grow in popularity as they’re not limited by geo-restrictions, effortlessly bringing players from around the world together.
Ushers in the Era of Tokenization
Thanks to blockchain technology, online gambling platforms can create their own cryptocurrencies and digital assets, which can be distributed to players. Tokenization allows crypto casinos to offer you unique rewards like your own avatar, which you own and can sell or trade with players. This creates a second economy on the platform and gives you new ways to earn cash. For example, let’s say you complete a challenge where you wager $10,000 on a particular slot in a month and receive a golden sword. This golden sword may be rare and prized by other players, so you can sell it to another player for 0.001 BTC.
Tokenization opens up all kinds of possibilities. It creates a new immersive gaming experience, and online casinos can turn into complete metaverse ecosystems with players earning and trading digital assets alongside playing traditional casino games.
We’re in the early stages of blockchain technology, and it’s already having a major impact on online gambling. It will be exciting to see what happens over the next five and ten years. Check out some of our other crypto gambling articles to see other ways cryptocurrencies are being deployed in the iGaming sector.
