Anyone who has not been living under a rock for the past couple of years has surely heard other people speaking about blockchains and cryptocurrencies. Not surprising, considering they have completely revolutionized the way we process payments over the internet.
The blockchain technology has made its way into a variety of sectors including the online gambling industry. Some of the leading providers of interactive gambling content have already embraced this new form of currency and enable payments via Bitcoin, Ethereum, and Litecoin. The past couple of years also saw the launch of various online casinos that rely exclusively on cryptocurrencies for their payments.
How the Blockchain Technology Affects Online Casino Players?
This is no coincidence and here is why. First and foremost, cryptocurrencies have become the epitome of safety. Online gambling operators do take all the necessary precautions to ensure their customers’ information is kept out of harm’s way. Unfortunately, hackers have also upped their skill levels so there is no guarantee players’ sensitive data is completely out of their reach.
This is not the case with blockchains which rely on cryptography to safeguard the data. The technology needs no third parties to act as intermediaries and is decentralized. It is not associated with a particular jurisdiction or financial institution.
Thus, cryptocurrency-based online casinos enable gamblers to retain their full anonymity. This is not the case at traditional betting sites where customers are normally required to send some personal documents for the verification of their accounts.
This not only results in inconvenience for the customers but may also hurt the casinos’ business since most players are just itching to jump right into the betting action. The blockchain technology poses as a solution to this problem since it can greatly simplify the sign-up process or even altogether eliminate it. Some crypto-based casinos have completely done away with registration and allow their new customers to start wagering immediately after they send a Bitcoin to the specified address.
As mentioned on SuperCasinoSites, cryptocurrencies enable faster, easier deposits and withdrawals, eliminating the necessity of providing your personal information in the first place. The only things you need to make a cryptocurrency payment are your name and the details of your crypto wallet. The financial transaction takes place with the help of both public and private keys, which further consolidates security.
Since the blockchain technology is not controlled by any financial institution, payments conducted in this manner are either incredibly cheap or entirely void of additional costs. The same cannot be said about some of the widespread conventional methods of payment, which often involve hefty service fees. Additionally, cryptocurrencies allow for larger sums to be deposited or withdrawn from online casinos.
Since no country’s government controls the blockchains, cryptocurrencies pose as the perfect solution for casino fans from jurisdictions with more restrictive legal and regulatory frameworks on online gambling.
Cryptocurrencies Make Things Easier for Casino Operators Too
As you can see, there are various ways in which players benefit from this new technology but can we say the same about online gambling companies? In fact, we can sense the blockchain technology makes things easier for gambling operators in a variety of ways.
Most payment methods that use fiat currencies allow for chargebacks but this is not the case where cryptocurrencies are concerned. When one deposits with a digital currency, they have to be extra careful – once the transaction goes through, it is impossible to reverse it or demand a reimbursement. This makes the lives of online gambling operators a lot easier because it spares them the hassles that result from having to deal with player disputes.
Also, casinos that rely on cryptocurrency may end up attracting a solid player base because they utilize an open-source algorithm that is referred to as the “provably fair” algorithm. This technology is exclusive to cryptocurrency gambling and greatly increases the levels of transparency at the online casinos that implement it.
It enables online casino players to check and confirm the games they are wagering money on are 100% random and therefore, fair. This way, when a player spots a Bitcoin casino, for example, they can instantly tell it is legit and unbiased. It makes sense this increased level of transparency works to the advantage of up-and-coming cryptocurrency-based casinos because it helps them build their customer base much quicker.
The online casinos using fiat currencies still outnumber those that rely on the blockchain technology. However, judging by the huge number of benefits the latter offers, it is only a matter of time before more and more casino operators start veering off in this new direction. So to answer our initial question – yes, we believe there is definitely a future for cryptocurrencies in online gambling and this future is now.