Online gambling and betting industry have grown considerably over the years, transforming the casino landscape for the better. Millions of players prefer visiting the online gambling site over visiting a land-based casino.
However, online casinos still fail to provide the utmost transparency as they intentionally conceal important information like the gaming results, payouts, etc. from the general public.
Nevertheless, there are also online casinos providing transparency, click here to know more. These are the casinos that make use of blockchain technology. So, what is blockchain and how will this technology revolutionize the online gambling and betting industry?
An Introduction to blockchain
Blockchain is a technology, which facilitates the digital exchange of data, information, and other units that hold value. Anything that can be tokenized, right from currencies, cryptocurrencies to property titles, can be exchanged via a blockchain network.
In simple terms, blockchain is a collection of interconnected digital blocks, which is, in fact, data of exchanges or transactions that are stored in a public ledger (blockchain system).
The information, which is exchanged between peer-to-peer in a blockchain network is always authentic, tamper-proof data. Thus, blockchain is used as a trusted ledger of transactions shared among peer-to-peer.
In general, blockchain is safe, secure, with enhanced transparency; because, the information or data stored in a block is severely encrypted and stored on every block or node, which forms the blockchain network. Thus, to tamper with a particular node or block, one must delete the complete blockchain.
Impact of blockchain in online gambling & betting industry
What makes blockchain the most sought-after technology, is the fact that the digital blocks can never be manipulated or tampered with. Blockchain technology is decentralized, and also enables smart contracts.
Decentralized means, the network is not regulated, governed by a single authority, meaning, no computer can exert sole control over the blockchain system to manipulate the data or exchange recorded.
As a public ledger, any blockchain is always open for public scrutiny, thus, any entity using blockchain can never cheat their customers. As per CasinoNewsZ, in this case, online casinos with blockchain systems in place can never cheat players online.
Smart contracts in online gambling
Blockchain technology enables smart contracts, which is nothing but computer codes that work on simple input and output mechanisms. Nevertheless, these codes are highly encrypted and once implemented can never be altered.
In simple terms, the use of smart contracts in gambling involves issues inputs like the game results, information for payouts, etc. For example; when a player wins a game online, it is the input that prompts the network to provide payouts, which is the output.
The pros and cons of blockchain in the online casino industry
Any system or technology has its own set of rewards and risks. While the rewards outweigh the risks with a blockchain network, let’s consider the impact of blockchain technology in the online gambling and betting industry.
Pros of blockchain in online gambling
- Blockchain ensures transparency as it is a decentralized system.
- Players’ anonymity as players can transact without diverging their personal information.
- Faster payouts due to smart contracts.
- Safe and secure P2P transactions in both gambling and betting.
- Provably fair gambling with random number generators incorporated in the blockchain.
Cons of blockchain technology
Only cryptocurrency or virtual currency transactions like Bitcoins, Litecoin, Ethereum, etc. supported.
Blockchain technology has revolutionized various industry verticals, and especially, online gambling and gaming sector. In fact, decentralized blockchain technology is transforming the online casinos for the better, making them far secure with increased transparency.