Crypto casinos are on the rise, and blockchain technology is essential to their growth.
The anchor is benefits of combining ai and blockchain provides a secure, decentralized platform for these casinos to operate on (or at
least to base some of their games around), and allows them to offer their users a host of
advantages. With blockchain, crypto casinos can offer provably fair games, instant withdrawals,
and much lower fees. This is just the beginning for blockchain in the gambling industry, and we
can expect to see even more growth in the months and years to come.
In this article, we explore some of the unique ways in which blockchain technology is helping
crypto casinos grow, and what this means for the future of gambling.
What Is the Blockchain (A Quick Recap)?
The blockchain is a distributed ledger technology that underpins cryptocurrencies like Bitcoin
and Ethereum. It is a secure, tamper-proof way of storing data that is open to all, yet cannot be
changed or deleted once it has been added. This makes it ideal for storing sensitive data like
financial transactions.
Blockchain casinos use this technology to store all of their data on the blockchain. This includes
game results, financial transactions, and player data. They could also opt to create a
decentralized app or Dapp on the blockchain, which would give them even more control over
their data.
Ultimately, the biggest advantage (and function) of the blockchain is to “let people—in particular people who don’t trust one another—share valuable data in a secure, tamperproof way”
The Benefits of Blockchain for Crypto Casinos
There are many benefits to using blockchain technology for online gambling and we’re only
beginning to see what this approach can bring to the industry. Casinos like Stake.com are already growing immensely thanks to the benefits of transparency, security, and decentralization
that the technology provides.
Here are some of the main benefits of using blockchain for online gambling:
1. Increased Transparency and Provable Fairness
One of the main advantages of using blockchain technology is the increased transparency it
provides. With traditional online casinos, there is often no way to know if the games are fair or if
the casino is withholding payouts.
On a blockchain casino, you will often find what are called provably fair games. These are
games that use cryptographic algorithms to ensure that the outcome is truly random and can be
verified by the player. This is a huge step forward in ensuring that casino games are fair and can
be trusted by players.
Once again, let’s take Stake as an example. The Stake casino features games from multiple
providers (including provably fair provider BGaming), along with their in-house developed
products. The Stake Crash game, for instance, was created by the Stake team, using a provably
fair algorithm.
Players can verify the fairness of each game after they play – they can enter the hash numbers
and make sure the outcome was truly random and, hence, fair. There is no mathematical way
that the casino can tamper with the results – and, if there were, it would get caught incredibly
fast.
This instills a great deal of trust in the casino, as players can truly know that they’re not being
cheated. In fact, players cannot be cheated in the first place!
2. Lower House Edges
The house edge is a statistical advantage for the casino operator which is built into the game.
For example, the most popular casino game, roulette, has a house edge of around 5%. This
means that for every $100 wagered at the casino, the operator can expect to make around $5 in
profit.
With blockchain casinos, the house edge can be significantly lower. This is because blockchain
casinos have significantly lower operational costs than traditional casinos. They also worry lessabout things like fraud (although it’s still an issue, blockchain technology increases security) and chargebacks, which can eat into their profits. This means that blockchain casinos can offer games with much lower house edges, which is great news for players. Some casino games can have sub-1% house edges – provably fair blackjack is a great example. As blockchain becomes more mainstream in the iGaming industry, we expect low house edges to become the norm, pushing Return-to-Player to never-seen-before heights!
3. Faster Withdrawals and Lower Fees.
Another great benefit of playing at a blockchain casino is that withdrawals are often much faster.
With regular online casinos, withdrawals can take days or even weeks to process. With
blockchain casinos, they can be processed in minutes or even instantly. Cryptocurrency can be
sent and received almost instantly and, as long as the casino doesn’t slow down the transaction
for ID checks, this benefits the players because they get their cash outs much faster.
And, on a similar note, crypto transactions also tend to be cheaper than transferring fiat via
traditional banking methods. So, you’ll often find that there are lower fees associated with using
cryptocurrency at an online casino.
4. Anonymity
Another big benefit of playing at a blockchain casino is Know Your Client (KYC) checks, while
they exist, tend to be much less invasive. At a regular online casino, you’ll usually have to
provide quite a bit of personal information, such as your name, address, date of birth and so on.
With a blockchain casino, you can often get away with just providing an email address.
But, be careful here:
Just because the casino doesn’t request a lot of personal information, it doesn’t mean you can
get away with lying to them. lf you live in a country where online casinos are banned, for
example, crypto casinos will ask you not to play on their site. Say you ignore that, lie about your
location, and still gamble.
Come withdrawal time, the gambling site can still request an ID verification. If you can’t provide
one, or the ID you do provide doesn’t match up with the information you provided when registering, you could still have your account frozen and your funds confiscated. So, while
anonymity is a possibility at crypto casinos, it’s not a guarantee.
Conclusion
As the popularity of cryptocurrencies continues to grow, so too does the number of businesses
that are willing to accept them as payment. One industry that has been quick to embrace
cryptocurrency is the online gambling industry. Blockchain technology has made it possible for
crypto casinos to operate faster, safer, and in a more transparent manner, which has made it
possible for them to offer their services to a global audience.
And, as the blockchain application landscape continues to evolve, it is likely that we will see
even more innovation in the way that crypto casinos operate. So, if you’re looking for a new and
exciting way to gamble online, be sure to check out a crypto casino today.
