The online casino industry has gone from strength to strength in recent years, with the focus on technological innovation and breaking new frontiers fueling a significant increase in market value and the player base. One of the most notable areas is blockchain technology, the foundation of the modern wave of cryptocurrencies.
This technology offers a secure, transparent and efficient way to conduct online transactions, making it a perfect fit for online casinos and gamblers. Cryptocurrency deposits and withdrawals are often the fastest available methods, and due to the decentralized and entirely transparent nature of the blockchain, they can also be among the most verifiably secure.
Despite these advantages, cryptocurrency and wider blockchain technology has struggled to assert itself on the global stage, mainly due to the reluctance by governments and traditional banking institutions to embrace things like Bitcoin. But this is all starting to change, and the online casino industry has emerged as one of the most important players driving its popularity from behind the scenes.
Want to know more about why online casinos are adopting blockchain technology? Keep reading for more information. We’ll also explain what blockchain technology is in layman’s terms, offer some examples of crypto casino games and provide some top tips to help you enjoy these platforms to the maximum.
What is blockchain technology?
Before we explain how blockchain technology and casinos have become so integrated, it’s well worth examining the actual blockchain concept. Without doing so, it’s much harder to properly appreciate how blockchain casinos work.
Blockchain technology is the building block behind cryptocurrencies, NFTs and other modern phenomena. In essence, it’s a distributed and decentralized ledger that securely stores and verifies information across a network. This information regularly uses cryptography – like with cryptos such as Bitcoin – to ensure it isn’t tampered with.
One of the most pertinent things about blockchain technology is that this information is also completely transparent. Furthermore, because it’s stored on a network rather than a single server, it’s also almost impossible to destroy. This creates a transparent and secure place for storing information, with the most popular example being cryptocurrency.
How do online casinos use blockchain technology?
Cryptocurrencies are the most obvious ways online casinos use blockchain technology. These virtual currencies enable instantaneous payments and instantly verifiable transactions, two highly important aspects for online gamblers nowadays.
But this is far from the only way online casinos use blockchain technology. Platforms are increasingly leveraging the technology to create other exciting scenarios. Here are a few of the main examples:
- Payments: As mentioned, processing deposits and withdrawals is the most obvious way in which online casinos use blockchain technology. This revolves around cryptocurrencies like Bitcoin, offering players a different way to fund their accounts than more conventional options. The instant processing times and upgraded transparency are two notable advantages.
- New casino games: Blockchain technology has enabled software developers to think of new ways to create innovative casino games. The new breed of crash games offers some of the best examples. These feature an increasing multiplier that players must cash out on before it disappears. Crash games are noteworthy for offering all players the same shared foundation – each round starts at a designated time, and you play with everybody else on the same game.
- Underlying security: It’s not just the outwardly facing casino aspects that have embraced blockchain technology. Online casino platforms are also increasingly turning to blockchain principles to safeguard their data and infrastructure. The decentralized and encrypted nature of the technology makes it highly fraud and hacking resistant. This is extremely important when you consider how much sensitive information casinos must process.
- Regulatory compliance: Speaking of sensitive information, this is often the most crucial aspect when it comes to regulatory compliance. Organizations such as the New Jersey Division of Gaming Enforcement or the UK Gambling Commission have strict rules regarding data processing and payments, something that blockchain technology is increasingly helping to enable.
The benefits of blockchain technology at online casinos
The main blockchain use cases at online casinos open up numerous eye-catching benefits. And the great thing is that all parties benefit, casino players and operators. Check below for some of the main examples:
- Secure, faster transactions: The most obvious benefit for casino players at blockchain casinos is the secure and fast transactions. This can be a marked improvement on legacy options such as debit cards, especially at blockchain-specific platforms.
- More transparent games: Casino games built on blockchain technology are more transparent than traditional games that depend on random number generators. The older RNGs are closed off to public scrutiny, so it’s far more difficult to verify that the algorithms are actually random. On the contrary, blockchain technology-based algorithms are transparent, creating more provably fair games.
- Innovative new possibilities: One of the most exciting parts of crypto games is the innovative new features they can create. Blockchain’s ability to track ownership and verify actions opens doors for entirely new game concepts – like the crash games we mentioned earlier.
- Reduced fees: While some alternative payment methods can hit players with fees for withdrawing, blockchain-powered cryptocurrency withdrawals are completely free due to the technology’s decentralized nature.
When will major casinos start accepting crypto?
Despite the various benefits and exciting possibilities that blockchain technology can unlock, major players in the online casino industry are still reluctant to take advantage of things like crypto. The main reason for this stems from governmental distrust of Bitcoin and other currencies, a problem that also extends to regulatory bodies.
But the tide is changing, especially as the alternative sphere of blockchain casinos continues to gain popularity and offer a glimpse into a brave new world for online gambling. As regulations evolve and major casinos become more comfortable with blockchain’s security and transparency, widespread adoption of cryptocurrencies seems likely. Analysts expect the situation to continue developing over the next decade.
Top blockchain casino tips
All this talk regarding blockchain casinos is likely making you excited to try these platforms. Before you do, make sure you familiarize yourself with some of our expert tips below:
- Research crypto casinos before playing: One of the most common mistakes people make is not doing enough research on crypto casinos before playing. Platforms can differ wildly regarding game quality and safety, so make sure you choose a verifiable blockchain casino before pressing ahead.
- Always set strict budgets: Blockchain casinos normally require crypto deposits, but don’t let this change the way you budget. As at conventional casinos, setting strict budgets to ensure you don’t overspend is absolutely crucial.
- Play high RTP games: RTP (Return to Player) is an incredibly useful statistic for casino players, helping them opt for games with a higher average chance of winning. Generally speaking, 96% is the benchmark for online slots, so try and choose games above this percentage.
- Store crypto details securely: While using crypto at blockchain casinos can be more secure than conventional payment methods, this is only true if you remain vigilant and store your details securely.
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