Blockchain: The Upcoming Breakthrough in The Coming Days
The use of blockchain in online gambling has the potential to overhaul the industry as a whole, because the driving force behind this technology is its ability to create safe, and transparent transactions – even in industries such as gambling. The online casino industry has been rapidly expanding in the past few years; however, with an ever-present concern over trust and transparency, it may be necessary for industry leaders to adopt blockchain as a way to assuage increasing concerns and stay ahead of the curve. So, what are some of the ways that blockchain will change the online gambling industry?
Here’s a closer look at what industry experts expect to see in the coming days:
- How Does Blockchain Help?
Trust is still one of the major issues plaguing the gambling industry and in particular, online casinos, where the issue of fairness has been raised many times, especially with regard to calculation of odds, and issues like privacy, which in today’s world is a serious concern. Gambling websites have a difficult job of proving to users that the systems behind their complex calculations have been set up fairly, with supporting high-end security systems to make it impossible for individuals to tamper with the odds or expose user data to malicious parties.
The reason blockchain can help with these challenges is because it has the capacity to solve the biggest obstacles for online gambling companies. For starters, blockchain introduces permanent records that can be verified over a distributed ledger – and this alone will resolve the issue of transparency once and for all. Blockchain has the potential to eliminate the risk of companies reneging on payments; and it can also encourage instant payouts once companies remove the middlemen that so often cause delays.
- Features and Characteristics of Blockchain
- Transparency: Blockchain ledgers are visible to everybody on the network and not on the network who wishes to check how transparent the system is. It’s not possible to alter any part of the ledger or conceal a transaction since every entry must be validated by individual parties involved in creating the blockchain. For clients and operators, this introduces a higher level of security and transparency based on the fact that each entry goes on record in the ledger, and remains intact in perpetuity, for all to see. Blockchain can be integrated into a private network for the benefit of an individual gambling website and its customer base only, or instead, a public blockchain can be set up that allows wider access to the records.
- Immutability: The nature of blockchain is that it is completely decentralized and immutable, meaning that nobody can conduct a transaction in secret or alter the record in any way. The ledger itself is controlled by a group of possibly thousands of computers from all over the world so that no one person has the power to make changes to the leger using a single computer or access point. This is what makes blockchain the most secure and trusted system of ledger in the world, and also what makes it perfect for industries such as online gambling.
- Anonymity: This is yet another interesting aspect of blockchain; every transaction is recorded and verified by multiple individuals who don’t know each other, and records are kept using only long sets of random numbers, making sure that everybody involved in creating and maintaining the blockchain remains anonymous. Any kind of identifiable information such as banking data or name and address are completely left out of these transactions. However, if an individual wish to prove that they were responsible for a particular transaction, then a unique digital wallet address can be used to track down the transaction in such a case. Each member of the blockchain team is assigned a unique digital wallet address that can be used to settle a dispute if needed.
- Security: As mentioned, the use of blockchain at gambling websites eliminates the need for personal information such as banking details; which in turn reduces instances of theft. When a cryptocurrency such as Bitcoin is set up for use in the platform, users can exchange real money for the cryptocurrency in a one-off transaction, using a trusted third party. This can be useful for individuals that want to use Bitcoin or other cryptocurrency for transactions with other online retailers – because a lot of them have started accepting Bitcoin as an alternative payment. Using cryptocurrency across many different online platforms reduces the risk of fraud far more than giving out your banking information to multiple websites.
- Merging Land & Online Casinos into A Single Blockchain Casino
Many of the high-end land-based casinos have already moved their services online where complex gambling platforms are employed to replicate the experience of being at a traditional casino. So basically, if a customer checks out of a casino but wants to continue playing Baccarat at home, then the casino will continue to make money while the customer plays comfortably at home. There are benefits to both parties, but such an arrangement also creates challenges with record keeping especially when players have multiple accounts, bonuses, loyalty points, track records, and so on.
Land-based casinos don’t have software in the casino to keep records up-to-date, and the online software in some cases is too old. Blockchain can provide solutions for these problems by uploading data to a shared ledger, where users can access the service using desktop and mobile devices, and where access management is controlled by smart contracts. This type of system can connect both land-based casinos with online platforms, making record keeping much easier.
- Blockchain Technology Is Private, Cheap, Legal, And Accessible
Blockchain can solve a lot of the challenges facing the gambling industry today, and this includes accounting, cash-in/cash-out, regulation, security; and it can also help bridge the gap between internet-based casinos and land-based casinos. Although much of the industry has yet to embrace blockchain as the future of gambling, it has become the obvious way out of the current limitations in the industry. Blockchain is not only safe, but cheap and sustainable, offering far greater security and access than any accounting software. In the age of digital transformation, players are pushing for a leaner, more efficient industry that addresses demands of modern customers. At the moment, blockchain appears to provide solutions to most of the common challenges in online gambling.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.