Blockchain in the modern gambling business

by in Blockchain 101, Blockchain For Beginners

blockchain gambling

For a long time, the Internet has become a part of our everyday life, without which no person can imagine his life. With the advent of the Internet, most companies and services have decided to expand their boundaries and go online. The same thing happened after the spread of blockchain technology. Many industries, including the gambling industry, decided to take advantage of the new technology and use them for their purposes.

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The Internet made it possible for users not to leave home. Thus there was an increase in users, as well as their bets and actions in the casinos. But what changed gambling, even more, was blockchain.

First of all, blockchain was introduced into betting. Thus, people began to bet not through the usual currency (dollars, euros), but electronic/virtual money. Different services approached the task in two ways: a person could place a bet either through the already existing famous cryptocurrencies (bitcoin, ethereum, etc.) or through the internal currency of the platform.

But betting alone is not enough to fully unleash the potential of technology such as blockchain. Residents from more than 10 countries have introduced the technology into their gambling services. Of course, it's worth noting that gambling is legal not in all countries of the world.

Blockchain gambling

Why online gambling is worse than blockchain-gambling?

Conventional online casinos appeared almost simultaneously with the Internet itself, but they have recently started accepting cryptocurrencies for betting. But in fact, this does not change anything in terms of transparency and honesty. Online casinos can still deceive users by using secret algorithms that play in favor of the casino itself, or set huge commissions and other barriers when giving out winnings. Of course, there are platforms that use certified software that you can trust, but they are a minority.

Therefore, when playing even in online casinos, remember that "the casino always wins."

Blockchain casinos

The best option and the most promising are the so-called "hybrid" blockchain casinos. They use blockchain in their work, but have a clear and user-friendly interface, like in ordinary online casinos.

An example is the Fairspin blockchain casino. It runs on the TruePlay platform, which is transparent and gives the user access to all casino actions you can view all deposits, bets with results, withdrawals, and the balance of the casino wallet itself.

It should be noted that most often casinos implement blockchain precisely to protect players.

Blockchain and gambling

Basically, online casinos and betting platforms are opaque, have geographical restrictions on payments, and a little trust, so they always have the opportunity to manipulate the results or simply not pay the winnings.

Blockchain can solve these problems. Firstly, the problem of interstate payments is solved by the simple use of cryptocurrencies. Secondly, if the necessary conditions are met, the winnings can be paid by a smart contract automatically and without the intervention of platform employees.

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Let's explain: blockchain casinos use smart contracts to record transactions on the blockchain, and tokens as an analog of chips. The player makes a deposit, the smart contract changes the deposit into tokens and credits them to the player's wallet. All player actions are automatically recorded and visible in the open registry. And no one, not even casino employees, can change this data. This confirms the transparency of the casinos themselves.

Blockchain gambling

A few numbers

In 2019, $10.9 billion passed through dapps. At the same time, the number of users with gambling and betting applications reached 1.23 million (instead of 260,000), and the volume of transactions grew from $3.39 billion to $6.71 billion. Currently, 970 gambling applications are working on blockchain.

The largest shares of all gambling dapps fall on the Ethereum, TRON, and EOS blockchains, and thanks to their smart contracts, the necessary transparency of all operations are provided. Payments are processed automatically, which reduces the risk for users.

Conclusion

With the advent of the Internet, new markets that were previously unattainable for gambling establishments and bookmakers have emerged, profits have grown and continue to grow. Players can now place bets lying on their own couch. But where there is money, there are scammers. They constantly come up with new ways of dishonest earnings and deception.

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Thanks to the blockchain, you can solve the problems of trust in online casinos and bookmakers. Smart contracts make it possible to verify and maintain the integrity of the casino with great precision. And thanks to payments with cryptocurrency, both players and online casinos themselves save on commissions, and, in addition, the dependence on centralized banking systems and their restrictions decreases.

Until now, not all projects have switched to blockchain technology, they already accept cryptocurrencies as deposits, but games and bets work on old technologies. Such a scheme of work attracts new players but doesn't solve the most fundamental problems in this area: players are still not protected from fraud, and the work of online casinos and bookmakers is not transparent. The future lies with those projects that fully integrate blockchain technology into their work.