The gaming and entertainment industry is a multibillion-dollar business with an endless appetite for the adoption of new trends and technologies. With digital transformation, one key trend that is slowly disrupting the space is the casino online which has much lower cost overheads compared to land-based casinos.
A number of online gaming sites have risen to prominence in recent years and provide gamblers with attractive deals and bonuses while providing immersive content online.
Recently, live casinos have surged in popularity where players can wager their money on games such as roulette and poker which are hosted by real dealers and streamed into their computer screens. This happens in real-time. This demonstrates how casino brands have become early adopters of many technologies and how several platforms have adopted this live-streaming option. Another popular trend that online casinos and gambling sites have adopted is that of using block chain technology.
What is Blockchain?
Blockchain is basically a digital, decentralized ledger system that helps solve a lot of problems faced when carrying out transactions online.
This is particularly useful in the gambling industry as bettors and gamblers can play freely owing to the trust and transparency inherent to blockchain. Blockchain-based online gambling platforms are totally decentralized and free of external, third-party involvement. Punters are therefore fully aware of what is going on. The funds are deposited directly into smart contracts with zero concerns about middlemen or security lapses. Moreover, players can be rest assured that they will get their winnings.
How does blockchain work?
Blockchain is basically an online, distributed ledger system that no one person controls. It is built around a P2P system that enables storing data globally on thousands of servers while allowing anyone on this network to see others’ entries in real-time. There is no single authority that controls Bitcoin and the system is fully transparent and trustworthy.
Blockchain and casinos
The reason why blockchain is ideal for online gambling is transparency. Transactions don’t take place in a black box. All gaming transactions like wins, losses and payouts are recorded permanently on the blockchain ledger.
This benefits both users and casino operators. There are instant payouts and since the transaction uses digital tokens rather than fiat, it eliminates the use of sensitive credit card information or bank details online. Additionally, operators can also bake in regulatory compliance. For instance, if there is an upper limit on the value that the resident of a particular country user is allowed to gamble on, then this can be coded in.
One highlight of blockchain for casinos is provably fair games as well as immutability and transparency. Players can check the payout of a game. Additionally, the transaction speed is extraordinary.
If you take a close look at dApp numbers, you will find that some of the most popular dApps are gambling games. dApps or decentralized apps are self-executed open-source software that are built to use blockchain technology with a series of trustless protocols.
Blockchain helps reduce house edge costs
Additionally, blockchain-based gambling sites can enable a reduction in transaction-related charges. A large portion of the overhead cost involved with starting and maintaining an online casino is quite expensive. One has to factor in licensing fees, transaction costs, merchant payments, compliance costs and taxes.
Using Blockchain’s automated functions previously carried out manually, it reduces many of the overheads associated with transactions.
Blockchain is slowly moving the world towards an environment where businesses and consumers can transfer any assets and have agreements in place without the need of a third-party auditor.
There are multiple applications of blockchain across sectors but gambling is one where it will have a revolutionary impact. In future, it will disrupt the gambling and casino business in a huge way.
Laila Azzahra is a professional writer and blogger that loves to write about technology, business, entertainment, science, and health.