Recently, many online gambling platforms have adopted cryptocurrencies as a way to process payments and reward winners for their luck.
Simply put, cryptocurrencies are ideal for the gambling industry, since they are private, easy to transfer, and good to hold for the casinos in the long term.
Nonetheless, the concept of a true blockchain casino is far from reality today, as many executives and website owners are still reluctant to adopt blockchain as the core of their website’s technology/gambling mechanism.
In this article, we are going to explore the current paradigm and how it’s going to change in the coming years. So, read this article, purchase bitcoin, and start gambling!
Crypto Casinos vs Blockchain Casinos – Is There a Difference?
It is not hard to find a crypto casino where you can gamble online and win prizes in different cryptocurrencies. They are booming in popularity and it’s likely to remain this way. However, there is no online gambling platform that can call itself a genuine blockchain casino.
Despite the similarities, both concepts could not be more different. A crypto casino is a gambling platform that utilizes some form of cryptocurrency for online transactions.
There are online casinos where they utilize Bitcoin as their currency of preference, for instance, while other casinos prefer a more hybrid system, using a combination of fiat currency and cryptocurrencies for online transactions.
Nonetheless, crypto casinos do not have blockchain technology as the core of their businesses. Instead, they utilize cryptocurrency just as a convenient way of making payments and transactions. This is an important difference because we still have to see a 100% blockchain-based casino. However, we believe that a fully decentralized casino is coming.
A blockchain casino is a gambling platform that has blockchain-technology as its foundation, incorporating it in all business procedures from management, maintenance, and execution.
Blockchain casinos would not be limited to utilize cryptocurrency as a facilitator for transactions.
Instead, it would incorporate technologies such as smart contracts, encrypted transactions, NFT-technology, and other blockchain-based solutions to deliver privacy, immutability, security, and transparency for online gamblers.
What Are the Advantages Associated with Blockchain Casinos?
Blockchain casinos would be the pinnacle of online gambling both in terms of experience and profit, which would affect users, owners, and developers positively.
Gamblers would have their winnings secured by blockchain technology, as instead of handling cash, they would rely on digital money only. This is a huge plus for holders since you can increase your ETH holdings, for example, and maximize your profits when the price of ETH rises again.
Consequently, it would mitigate the risk of theft or scams, while also circumventing all sorts of middlemen in the process (e.g., gambling commissions, banking charges, etc.).
Plus, gambling involves plenty of sensitive information, including the constant usage of credit/debit cards, banking information, personal data, etc. Blockchain technology creates anonymity, which would help to eliminate the risk of data theft due to the increased security brought by highly encrypted databases.
When compared to any conventional casino, a blockchain casino would have extremely low costs, both for maintenance and operation. Also, it would greatly reduce transaction fees, both by cutting expenses and by eliminating the necessity for intermediaries (e.g., banking entities).
Furthermore, it’d make it possible to truly assess the real RTP and randomness of games, to make it fair for everyone involved in gambling, be it the casino and the players.
What Are the Potential Challenges Associated with Blockchain Casinos?
Although blockchain casinos are a feasible and practical idea that eventually will materialize, it is impossible to deny the challenges associated with the development and implementation of such an idea.
Firstly, there is the regulatory issue. Undoubtedly, a blockchain casino would fall into two of the most regulated categories worldwide, which are gambling and cryptocurrency technology.
Nowadays, cryptocurrencies are subject to heated debate all over the world since digital money and blockchain are odd concepts for most governments and regulatory agents.
Recently, many entities and political figures publicly stated their concerns about the legal nature of cryptocurrency, especially after cases allegedly involving digital assets as funding for international terrorism and money laundering activities.
Another common concern would be the anonymity aspect. It would be difficult to regulate blockchain-based services due to the inherently privacy-oriented nature of the technology. Hence, it would harm the effectiveness of age checks, anti-money laundering mechanisms, etc.
Are Blockchain Casinos the Future of Online Games? – Final Thoughts
The gambling industry will be unavoidably transformed by blockchain technology, especially with the ever-growing necessity for solutions to increase fairness, transparency, and effectiveness for online gamblers.
Currently, the most difficult challenge for blockchain casinos is still the regulatory aspect.
In this sense, the evolution in the manner legislators and governments understand blockchain technology will remove several barriers for the mass adoption of blockchain in the gambling sector.
However, despite all challenges and controversies that surround blockchain technology, it is impossible to deny the impact of this innovative tool in the future of online gambling.