Platforms based on blockchain technology have emerged as a disruptive force in the online gambling industry. Traditional online gambling methods have many notable limitations, such as a lack of transparency and trust between players and operators. They also require centralized intermediaries to enable transactions.
This is where blockchain-based gambling platforms come into the picture. These platforms can give players a new degree of confidence, fairness, and transparency by using the decentralized, transparent, and immutable features of blockchain technology.
As the gambling industry develops, it is apparent that blockchain gambling platforms will play an essential part in its future.
The Background of the Blockchain-Based Gambling Industry
Blockchain is a decentralized system where records of transactions between parties are distributed securely and transparently. This technology is rooted back to the emergence of Bitcoin, the first application of Blockchain technology, in 2009. After the invention of Bitcoin, more and more cryptocurrencies were created within blockchains.
Now, Bitcoin still remains the most well-known and widely available cryptocurrency. However, the relevancy of other cryptocurrencies has also managed to change how some industries work, and the gambling industry is no exception.
The employment of blockchain technology for online gambling first surfaced in 2012 when Satoshi Dice was created. It was the first blockchain-based gambling platform that allowed users to bet Bitcoin on games. The outcome was decided by a blockchain-based random number generator.
Satoshi Dice works by providing a number of public addresses to bettors. Each address has a predefined chance and reward for a win. Then, the platform returns the player's stake multiplied by the payment if they win.
Since the emergence of Satoshi Dice, many gambling platforms have followed in its footsteps by allowing cryptocurrencies as transaction methods. Those platforms offer a wide variety of gambling games, such as sports betting and live casino games for crypto.
Some of the most widely-accepted cryptocurrencies in the blockchain-based gambling industry are Bitcoin, Ethereum, Tether, and Litecoin. Cryptocurrency gambling platforms keep getting more and more relevant due to the benefits they offer.
Blockchain-based gambling platforms can provide transparency and security that traditional online gambling platforms might not offer. They also allow faster transaction times with lower fees. In addition to those, there are more reasons why they keep growing.
How Blockchain-Based Gambling Platforms Bring Advantages to the Industry
Here are the things that blockchain-based gambling platforms bring to the table:
Transparency and Fairness
This benefit comes from the decentralized nature of blockchain technology. Being decentralized means that these platforms operate on an independent network that's not controlled by a central authority. Instead, a community of users called "miners" runs the network by verifying the transactions.
In traditional online gambling, you have no choice but to trust that the platform doesn't manipulate the game's outcome. With the system of blockchain-based gambling, however, you can feel safe knowing your transactions are publicly recorded. People can access and verify this public ledger for its transparency.
Blockchain-based gaming platforms provide no way for anyone to manipulate the results of the games. This way, both platforms and players can benefit. The platforms acquire players' trust, while the players gain a sense of security.
The traditional gambling platforms will most likely require you to input personal information before playing. However, not many players would be comfortable sharing their gambling activities and personal data with other parties. Blockchain-based gambling platforms offer a solution to this problem.
As blockchain technology operates on a decentralized network, none of your ownership in it will be linked to any of your real-world identities. This way, you can always remain anonymous. Furthermore, anonymity can promote responsible gambling by lowering the social stigma associated with gambling.
Many people are hesitant to bet in public because they are afraid of being judged or discriminated against. However, blockchain-based gambling platforms allow them to play without disclosing their identity, establishing a safe and inclusive atmosphere.
Cyber-attacks, data breaches, and other security risks can jeopardize the security of traditional gaming platforms, putting players' data and possession at risk. With blockchain-based gambling platforms, however, these issues are far less likely to happen.
The blockchain's decentralized structure implies that there is no central point of failure. Data is distributed over a massive network of nodes. As a result, hackers would find it incredibly difficult to change or alter data on the blockchain, giving it a safe platform for gamers to wager on.
Due to having no intermediaries involved in the transaction process, blockchain-based gambling platforms can have lower fees than traditional gambling platforms.
In most regular online gambling, these intermediaries regulate and arrange the payment processes. They charge fees for their service, which can make the cost of gambling expensive.
The ones who are affected by this are not only the players but also the platform operators. They have to pay extra fees to these banks or credit companies.
On the other hand, transactions on the blockchain are peer-to-peer. Therefore, payment processors or banks are not required to manage the transactions. As a result, the costs associated with blockchain-based gaming platforms are frequently far lower than those associated with traditional platforms.
Blockchain technology is built to manage a large number of transactions. This means that blockchain-based gambling platforms can execute a vast number of transactions at the same time.
This way, players can enjoy their profits more quickly. Furthermore, the usage of cryptocurrencies on blockchain-based gaming platforms improves transaction processing speed.
Since cryptocurrencies have quick confirmation times and do not require human permission from intermediaries, they can quickly generate payment processes.
Summary - Final Thoughts
The emergence of blockchain-based gaming platforms represents a big advancement in the gambling business. They provide a fair, dependable, and trustworthy gambling experience due to their decentralized, transparent, and secure nature.
Furthermore, the implementation of smart contracts also guarantees that the platform follows pre-defined regulations, removing the need for intermediaries and lowering the risks of fraud. The immutability of blockchain technology assures that transaction records are permanent and publicly accessible.
Blockchain-based gambling platforms have the possibility to outperform traditional gambling platforms, making them a disruptive force in the market. As blockchain technology evolves, it is expected to transform the gambling industry in significant ways.