It is difficult to imagine the life of a modern person without the Internet and digital technologies, which cover, without exaggeration, all spheres of human activity. The most significant impact on the gambling industry over the past two decades has undoubtedly been the emergence and spread of the Internet. So, the second – a simplified and mobile version of gambling establishments appeared. The profits of casinos and bookmakers have grown due to online players. However, in recent years, another factor has appeared that has also a big impact on the gambling industry: blockchain technology.
The penetration of innovation occurred through betting, the financial operations of which began to be made in electronic currency. However, this was not enough to unlock the potential of technology. Blockchain is actively used in more than ten countries. The gambling industry is far from legal in all jurisdictions, and the degree of “permissible” is determined at the state level.
Blockchain in the modern gambling business
Typical online casinos and betting platforms are characterized by the same problems – opacity, geographical restrictions on payments, and the need to trust the owners of the site, who can rig the results or keep the winnings.
Blockchain is just the technology that solves these problems in different industries.
The introduction of blockchain payments and bets in cryptocurrencies by gambling platforms is the first and conditionally simple way to approach the problems above. If the platform pays winnings in cryptocurrencies, it does not matter what state borders the payment should go through. In addition, the blockchain payment, which is carried out by a smart contract after specific conditions are met, such as the desired sector falling out on roulette, will work automatically without the participation of the platform operator.
In 2019, transactions worth 10.9 billion were made through decentralized applications. At the same time, the field of gambling and sports betting showed a significant increase in the number of users of these dApps – from 260,000 to 1.23 million, and the volume of operations grew from 3.39 billion to 6.71 billion.
Most decentralized gambling applications are created on the Ethereum, TRON, and EOS blockchains, which guarantees certain transparency of operations since all the activity that occurs in dapp is controlled by smart contracts. Due to the absence of intermediaries in the processing of payments and personal information, the risks for the user are significantly reduced, and open access to the registry allows you to verify transactions.
Having appeared at the dawn of the growing popularity of the Internet, online casinos are also trying to keep up with the times and begin to accept crypto assets for betting. This creates a false impression that the gambling platforms are somehow connected with the blockchain and the distributed registry, but this is not so.
Online casinos often trick users, and it is difficult to hold them accountable. Most often, two classic schemes are used: the inability to win and the inability to receive a win. The algorithms of online casinos, albeit accepting crypto assets, are opaque and only a few providers use certified software that you can trust. Many sites use their own developments, which have vulnerabilities that increase the casino’s chances of winning.
The most promising and interesting are “hybrid” solutions that embody the golden mean – the use of blockchain and online casino models with a clear and convenient interface. This hybrid approach has been introduced by Fairspin blockchain casino operating on the TruePlay platform. The platform allows the user to open access to all casino operations – the player can see all deposits, withdrawals, bets, and their results, as well as the balance of the casino wallet.
The Internet brought gambling establishments and bookmakers more profit and opened access to new markets. Players got the opportunity to bet without leaving home. On the other hand, among the many gambling and betting platforms on the network, there are more scammers and more ways of dishonest earnings.
Blockchain technology is a solution to the problem of trust in online casinos and bookmakers. The player can verify the honesty of the institution, and the platform operators can provide mathematically irrefutable evidence of honest work. So players and institutions save on commissions for transfers and minimize dependence on centralized banking systems and their limitations.