The term decentralization has become well-known ten years ago when the Bitcoin currency was invented. Today, it is more than just a base for cryptocurrencies’ work as it is used by platforms in many industries, for instance, in gambling. Slotegrator suggests analyzing decentralized casinos and looking at their benefits.
What Is Blockchain Casino?
Blockchain casino is an online gambling platform based on decentralized technology. Usually, decentralized casinos aim at improving the gambling industry and making it safer as all financial operations are conducted with the help of blockchain.
Today, blockchain can be used in a gambling platform differently. Some online casinos just integrate cryptocurrency payment methods to allow players making deposits in crypto coins, while others fully build their platform on the blockchain.
Why Does Gambling Industry Need Blockchain?
Although today the gambling industry is well-developed, the opinion that casinos’ work is unfair still exists. Some people believe that the online casino sphere has various financial risks and is not secure enough. Blockchain aims at solving these issues, so let’s have a glimpse into how it works.
Blockchain is a distributed ledger or the set of blocks and records connected by cryptography. The technology is not centralized, which means that there is no single place for storing the information. The data is distributed and stored in many various computers across the network. This makes it almost impossible to attack the network, hack the system, and steal data.
Therefore, if blockchain technology is used in the gambling industry, it can provide a high level of security and make casinos trustworthy.
Advantages of Decentralized Casinos
- Anonymity. In order to play in a traditional casino, gamblers have to register and open an account, and they need to provide their personal information such as name, email address, and bank account number. Decentralized blockchain casinos don’t require personal information, as players gamble through their unique crypto wallet address not associated with their identities. Moreover, apart from personal account data, the information shared within gaming chats is also safe and secured as it is stored on the blockchain.
- Transparency and reliability. As decentralized casinos use smart contracts for financial operations, players can enjoy the benefits of transparency. They can make sure that the casino works fairly as they have access to all information about game rules and payouts.
- Fast payments. Apart from getting a secure way to collect winnings, players can make money deposits and withdrawals instantly because no financial institutions and banks are involved in transaction processing. This significantly reduces the time required for the transaction as well as makes the commission lower.
- Accessibility. Blockchain casinos can be easily accessed from all over the world as there are no limits in currencies that can be used.
- A new level of loyalty programs. On blockchain casino platforms, players get a possibility to receive tokens for playing that can later be used for deposits or can be withdrawn to crypto wallets. The concept of wealth distribution among the platform’s users is beneficial as it can keep players interested in the platform.
Prospects of Decentralization in Gambling
Blockchain in the online casino sphere is becoming more popular, and the number of crypto transactions in gambling is increasing. At the beginning of 2018, around $1 billion was generated in transactions conducted via gambling DApps, while the amount has reached almost $1.5 billion by the beginning of 2019. More than that, the number has reached its highest peak in November 2018, as $2.25 billion was generated in DApps transactions.
According to many industry experts, online casinos will keep getting decentralized and will mainly focus on the TRON blockchain. The analytical company Dapp Review has conducted a study that shows that 64% of all DApps based on TRON are related to gambling, and they have generated around $1.6 billion in transactions in the Q1 of 2019 alone.
Experts predict that in the future, the decentralization of gambling platforms will reach a higher level, and more online casinos will start using blockchain as a base of their platforms.