Cryptocurrencies and blockchain technology have been a huge topic recently, with many industries showing interest in jumping on the bandwagon. The gambling industry is certainly one of those, as crypto gambling’s popularity is on the rise. Back in 2017, there was a vast amount of optimism that crypto gambling would be a major success, but talk died down when Bitcoin crashed dramatically in December of that year. As blockchain technology continues to develop crypto gambling has become more advanced and is gaining more instructional backing, meaning things could be different this time.
What are Cryptocurrencies?
Put simply, Cryptocurrencies are digital currencies that are not controlled by a single authority, but a decentralised database across a large number of computers. They utilise a secure online ledger unlike other currencies, which limits fraud and identity theft. Every transaction is recorded and publicly available, making it almost impossible to hack.
Cryptocurrencies use a technology called blockchain, which is a specific type of database, which stores information in blocks which are chained together. It serves as the digital public ledger and is a decentralised database managed by multiple participants, meaning there is no bank or facility where the data or information is kept.
What is Crypto Gambling and its Benefits?
Crypto gambling is simply traditional gaming with the use of cryptocurrencies such as Bitcoin or Ethereum. The impact of blockchain technology on the iGaming industry has been steady, but it has recently seen a surge in popularity. New slot sites dedicated to blockchain and crypto gaming are appearing, giving gamers the opportunity to place a bet, play the odds and withdraw their winnings all within an hour thanks to the speedy transaction times.
Affiliate manager at Campeón Gaming Partners Giannis Katsavrias said: “In only a few years, virtual currencies have become more and more popular in the gambling industry.
“Up until recently, there were only a few online casinos which accepted it – but today, it is available at most of them.”
Firstly, utilising blockchain technology in iGaming provides enhanced safety and security.
Using cryptocurrencies makes stealing of personal data almost impossible as there is no centralised server, or single point of attack to hack due to blockchain technology providing a secure way for consumers to complete transactions. Crypto gambling provides consumers with a frictionless way of gambling using cryptocurrencies instead of FIAT money (government-backed currencies such as pounds and dollars). Using these currencies means deposits and withdrawals are much faster without the added transaction fees.
In many countries around the world, transactions can take hours to process, but crypto gambling completely eliminates delays and gets your earnings into your wallet in rapid time.
The odds are often better in crypto gaming too, as the decentralised feature of blockchain technology means there is no middleman, according to Mr Katsavrias. “The relationship between the operator and the user will also be more streamlined with cryptocurrency. All costs and expenses will be lower for the provider, and those saving are passed onto punters.” Claimed Mr Katsavrias. “This can make casino bonuses much higher than they are today...It’s a win-win for everyone involved.” Consumers will know they are playing provably fair games, as the entire history of every spin of a wheel or slot using blockchain is recorded on the public ledger for all to see. This provides a transparent and fair experience, putting to bed the phrase ‘the house always wins.’
What is the future for Crypto gambling?
The gambling industry has been redefined by technology in the past 15 years. This is just the next step for consumers. As blockchain technology and cryptocurrencies continue to garner support from various corporations such as Tesla, who recently announced it invested US$1.5 billion in bitcoin and that it expects to start accepting cryptocurrency as a payment towards its products in the near future, iGaming won’t be far behind. It seems clear now that bitcoin isn’t going anywhere soon, and various industries will utilise its technology to enhance their product and we can expect more and more casinos and gaming sites to use bitcoin transactions in 2021.