Blockchain and iGaming. Where lies the connection between the two? Will cryptocurrency really become the game-changer for the online gambling world? What are ICOs? Are online casinos ready for the cryptocurrency boom? As you’ve noticed, an endless line of existing questions about cryptos and their use in iGaming clearly shows blockchain technology is changing the iGaming industry. Let’s try to find out how.
The Power of Blockchain Technology
For the purposes of understanding this article, we will provide the necessary information about the basic terms which are most often used when talking about cryptos.
Blockchain is a system in which multiple independent nodes operate simultaneously by processing the same commands. The most important advantage that blockchain brings to the table is the concept of distributed ledger.
This innovative structure presents a database which is shared and synchronized across multiple sites. The next main benefit of blockchain is defined by its ability to allow transactions with “public supervision”.
With blockchain, iGaming platforms would be better protected from hacks, attacks and leaks.
The outcome is beneficial in many ways starting from preventing cyberattacks with less effort since all transactions are encrypted to using the system for programing smart contracts. These schemes work best when created within a formula “If this, then that”.
For example, if you land three diamonds while spinning the reels in online slots, you’ll hit a jackpot and the casino will pay you off. On the other hand, if you put your money on the red number and the ball stops on black, then casino takes your money.
Why Blockchain Needs to be Regulated
However, every invention, no matter how innovative it might be, comes with weak links or spots. So, what are the weak spots of blockchain and cryptocurrency?
So far it has been noticed that blockchain as a structure based upon cryptocurrencies exist could be improved. First of all, cryptocurrencies are extremely volatile. That means that they can significantly gain or lose value in a single day or even a shorter period of time.
Decentralized digital cash such as Bitcoin and Ethereum is vulnerable in terms of fluctuation of its value due to several reasons like bed press, news about security breaches, little option value to large holders and too much variance in perceptions of store of value.
The use of blockchain technology needs to be regulated.
The obvious conclusion coming out of the previously stated is that blockchain and cryptos need some sort of regulation. Above all, the channels through which they could flow should be properly guided.
The enormous potential of cryptos would be therefore exploited to the fullest by creating a legislative framework which could further attract more players and companies to use cryptocurrency and to do new business.
And if you’re thinking about using cryptocurrency by investing in one, then you should also get familiar with the meaning of the term ICOs. Basically, ICOs stands for Initial Coin Offerings, which means that an investor offers a certain amount of baby coins in exchange for let’s say Bitcoin or Ethereum.
This way the creator funds the development of a new cryptocurrency and the investor hopes to see the investment growing in value and becoming the next Bitcoin.
Benefits of Using Cryptos in Online Gambling
Having in mind advantages of using cryptos as payment methods such as no chargebacks, super low fees and very fast transactions, it’s no wonder why blockchain technology gets more fans by the minute.
Thanks to transparency, clarity and security, the essential advantages of cryptocurrencies, the world of digital cash emerged as a strong alternative to traditional financial mechanisms and money transactions.
The number of online casinos introducing cryptos as payment methods is constantly growing and there’s no prediction when the process may slow down. In addition, regulatory bodies such as Malta Gaming Authority are working on promoting blockchain technology and that alone is proof enough that blockchain is yet to show its true potential.
What is your opinion on using cryptos or doing business with cryptocurrency? Visit our forum and share your thoughts with others from the gambling community.