The global gambling market is booming due to high internet penetration and the increasing use of mobile phones for playing online gambling games.
As per the estimations by Grand View Research, global online gambling will grow at a CAGR of 11.5% from 2020 to 2027.
Another factor driving the growth of the gambling market is blockchain. Several gambling websites are integrating the blockchain technology into their online casino business to ensure transparency and offer enhanced user experience.
What is Blockchain Technology?
Blockchain, a decentralized and distributed technology, is a growing list of records that are linked using cryptography. It is a transparent and publicly accessible ledger that allows securely transfer the ownership of units This trading of units can be done by hand or some traders use platforms like Immediate Edge to trade for them, although sometimes they can be risky to use.
Every transaction uses the digital signature of the owner, which authenticates the transaction and safeguards it from tampering.
The Benefits of Blockchain Technology
Recent technological advancements have brought an entirely new level of safety and trust to the online gambling industry, most notably through blockchain.
Let’s look at a few benefits of blockchain in the gambling industry.
1- Security and Fair Play Guarantees
Blockchain eliminates fraud and ensures secure transactions as it prevents data from being changed or deleted. Blockchain keeps your bank and personal details safe.
Blockchain also maintains transparency by recording all the actions you take on the platform. It allows everyone to see the history of all operations. It enables you to check the payout of your casino, the amount of money you won, the outcome of a game, and the amount of bet that you placed.
An online casino operating on a transparent blockchain is more likely to attract customers by providing an added level of trust.
2- Improves Payout Process
The process of withdrawal is a challenge in the gambling industry, as you need to deal with different documents and intermediaries.
However, blockchain introduces smart contracts that are self-executing programs. They perform actions such as money transfers when the player meets certain conditions.
Smart contracts also provide proof of the betting performance, which bettors can use to improve odds. They record and track payouts, enabling bettors to follow their bets by using copy betting.
3- Payment Through Cryptocurrency
Many online gambling websites accept cryptocurrencies as a form of payment. Cryptocurrencies are becoming the most popular payment system as they allow you to get rid of third-party intermediaries like banks or payment services.
Traditional bank transfers usually take days and are often very expensive. Using cryptocurrency enables you to transfer funds instantly anywhere in the world at almost zero cost. You can also cash out by moving your winnings off the online casino and back onto your wallet.
Besides, it also saves costs for online bitcoin casinos and improves profit margins by avoiding cash handling fees.
4- No Chance of Data Breach and Fraud
Several online gambling websites have suffered from hacks and frauds. Hacking online gambling platforms leads to loss of money and personal information.
However, blockchain technology helps protect online casinos from fraud. The distributed ledger gets automatically updated, preventing individual users from modifying or hacking the record.
Smart contracts enable trusted transactions that eliminate the need for a centralized party. They preserve data integrity and prevent tampering the data flow.
Blockchain-based gambling platforms are decentralized and are free of third-party influence. It implies that no single person, company, or entity can alter a recorded transaction.
A blockchain-based game uses smart contracts to govern transactions inside the game. Thousands of computers around the world secure smart contract results recorded in a decentralized blockchain and makes these records immutable.
Thus, no centralized agent can change the public address where the assets are stored, and no one can change the ownership of these in-game assets.
6- Improves Accessibility
The prohibition of online gambling in several states or countries makes it difficult to access online casino games. However, the cryptocurrency used on a decentralized platform allows you to access online casino games. It is possible as blockchain technology enables you to trade digital currencies all over the world.
Increasing accessibility brings online gambling to remote parts of the world. There are already online bitcoin casinos in the gambling industry accepting and creating their tokens.
7- Increases Anonymity
In a traditional casino, you have to fill out forms, add personal details, documents and need to verify your account, which makes the whole process lengthy and puts your information publicly available.
However, blockchain keeps your information private and allows you to remain anonymous. Records of every individual’s interactions with a blockchain are present in a transaction address made up of random characters and numbers. It prevents hackers from gaining access to personal data and allows you to use your tokens on the betting platform without revealing any information.
Blockchain technology is providing an opportunity for the gambling industry to become a fairer and safer entertainment option and improve the overall consumer experience. It solves the trust issues by increasing transparency, privacy, anonymity, and accessibility.
Blockchain is the future of the gambling industry. The next step in the evolution of blockchain technology is investing in digital securities and currencies.