How Blockchain Technology is Changing the Face of Online Gambling
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Gambling began moving online over a decade ago and since then, online casinos have exploded in popularity. The instant accessibility and convenience of online platforms have made gambling on the internet even more popular than traditional casinos. However, the move has not come without its own problems and pitfalls. In any online environment where money is involved, the need for trust and security becomes paramount.
Unlike traditional brick-and-mortar casinos, online gambling requires users to hand over banking details in order to purchase chips or ‘digital credit’ to play at any given site. While advancements in internet security have come a long way to securing the transmission of data online, the question of whether you can trust an operator still remains.
This is where blockchain technology can provide a much-needed layer of trust to the online gam-bling industry. It’s autonomous, decentralized and immutable nature make it the perfect middleman in an online transaction.
Blockchain in Gambling
Cryptocurrencies like Bitcoin are unique in that they are private and independent of any central en-tity. They provide a means of financial interaction that doesn’t require handing over any sensitive personal data or banking details. This means that even the most paranoid of customers are far more likely to use them for online transactions.
In addition to this, the digital ledger technology that blockchain is built upon ensures that there is always an incorruptible record of events that neither party can tamper with. Every detail of every transaction, no matter how tiny, is recorded in the ledger for perpetuity. The encoded transaction details, while transparent and viewable by anyone, maintain both anonymity and integrity through complex encryption algorithms.
This provides the basis for a secure and legally binding system that ensures honest cooperation between the customer and operator. There is probably no other technology available that is more perfectly suited to the needs of the online gambling industry.
Ease of Use
Above and beyond its security and compliance aspect, blockchain offers many other benefits to both customers and service providers. Cryptocurrency transactions can be instantly validated and confirmed via the blockchain, removing the need for third-party interference speeding up the entire process.
Naturally, this automated process greatly reduces any costs involved, passing on the savings to the customer. Once a customer has set up their personal digital wallet and purchased their desired cryptocurrency, they can quickly and easily deposit and withdraw funds across multiple online plat-forms without the need for any further bank involvement. This greatly reduces the spread of sensi-tive data across the Internet and improves overall security.
Random Number Generation
In addition to faster and more secure transactions, blockchain provides a method of ensuring fair random number generation within casino games. Unlike in a traditional casino where it would be difficult to cheat, online casino operators could potentially rig the system in their favor.
By using a random number generation tool built on blockchain technology, all spins and dice tosses are recorded in a transparent ledger and can’t be manipulated. This gives customers peace of mind that the casino they are using isn’t cheating them.
The decentralized nature of blockchain makes it ideal for independent game developers to get in-volved in online gambling at a low cost. Small-scale developers can build a game at home and uti-lize smart contracts on the blockchain to ensure payment and copyright. Blockchain smart con-tracts can be programmed to automatically process payments while also enforcing legal rights.
Several decentralized protocols already exist that make it possible for up-and-coming developers to get a foot in the door of the gambling industry. This kind of enterprising ecosystem keeps costs down for the customer while also providing job opportunities for freelance developers.
The transparent and immutable attributes of blockchain technology fit perfectly into the framework of online gambling by solving all trust issues between the user and operator. In addition, decentral-ized and private cryptocurrencies provide a fast, safe and cost-effective method of fund transfer between platforms all around the world.