The blockchain at the service of online gambling

Written by charon
Publication date: {{ dayjs(1623511139*1000).local().format("L").toString()}}
This article is an automatic translation

Blockchain is an innovative concept that has the potential to transform transactions and revolutionize the way we interact and transact in different sectors.

It is the technology behind cryptocurrencies like bitcoin. The blockchain allows transactions to be recorded in a large, protected and secure ledger with a distributed database structure available in the same network, secured by "hashing". This makes it possible to carry out transactions without intermediaries that are permanent, unalterable, anonymous, but transparent, i.e. without the possibility of manipulation. What is the connection between blockchain traceability, gambling and the security of the online gambling industry?

The problem

Online gaming is the fastest growing game in the world. However, players are subject to regulation, fraud and scams from other players and disreputable companies. Cryptocurrencies used to be a niche market, but they are now widely accepted and adopted with the blockchain. You can get paid in crypto, buy a house in crypto, do your weekly shopping in crypto, and of course, gamble in crypto. This adoption of the technology to everyday activities has made it easier for people to perceive it. Cryptocurrency is now recognized as a value, has benefits, is a safe bet, and is trustworthy. Integrating crypto payments into an online gambling site is something to plan for in the short term.

The benefits of adopting blockchain

No chargeback on cryptocurrency payments

Businesses suffer many losses due to chargebacks. This is when a customer makes a card payment, receives the item, and then reports the payment as fraudulent to get a refund. There is no such risk with cryptocurrency payments. Once they have been recorded on the blockchain, they cannot be changed or reversed. This means that it is impossible to make a chargeback without the consent of the company.

Privacy and transparency of crypto-currency and bitcoin gambling
Cryptocurrency transactions take place on the open source blockchain, a decentralized ledger that is completely indestructible. This means that once a transaction is made, it is permanent and cannot be reversed, changed, deleted or manipulated in any way.

This means that the risk of fraud, identity theft and counterfeit payments is greatly reduced. Cryptographic payments provide online gaming licensees and players with an additional level of security.

Cost-effectiveness and low transaction costs
From the perspective of online gaming licensees, allowing crypto payments on their online gaming site also has many benefits. Merchants can often negotiate better rates for conventional payments, but much of the revenue is lost due to fees paid to payment service providers. With cryptocurrency payments, however, things are quite different. Some of the leading cryptocurrency payment gateways charge only 0.5%, which is significantly less than the competition. By providing for cryptocurrency payments on your site, you can funnel a significant percentage of your revenue through a payment method that saves you a fortune in processing fees.

Instant and borderless transactions
Chances are, not all customers are located in the same country. Therefore, by offering bitcoin payments for example, international customers can benefit from instant cross-border payments and transactions. The transaction is completed in seconds and remains secure, non-forgeable and private. The best part is that even those without a bank account or credit/debit card can send payments in cryptocurrencies, making online casino shopping and gaming accessible to everyone.

When you make a transaction with a blockchain wallet, you don't have to wait for it to be processed or cleared and you certainly don't have to pay international fees. Anyone with an internet connection can send a cryptocurrency transaction whenever they want, to whomever they want and for whatever amount they want.

Areas for improvement

The traditional gambling and betting industries have always focused intensely on exceptional user experience, and the gaming industry combined with blockchain is bound to meet customer expectations for speed and security of transactions.

Bettors and players want to make deposits or withdrawals instantly. However, this can be exceptionally difficult for cryptocurrency payment portal providers, as several confirmations may be required before a transaction can be processed. This can take anywhere from 10 minutes to a few hours, which significantly compromises the online experience of users.

What the legislation says

Currently, casinos are required by law to ask players to prove that they have sufficient funds when depositing a certain amount of money into their online account. However, when they agree to pay by crypto, this is done anonymously and therefore goes against the transparency and regulations required in the business.

Furthermore, when using crypto currencies as a means of payment, there is no guarantee as to their value: some crypto currencies called " altcoins " are known and notorious for their meteoric rise and fall. This does not offer players a practical short-term solution for their gambling funds.

Many people view investing in blockchain as the same as gambling in a casino. However, while gambling, such as roulette, often requires an understanding of roulette odds and an effective gambling strategy, a similarly thoughtful approach to investing in highly volatile cryptocurrencies such as dogecoin may be unnecessary. This is due to the volatility of the cryptocurrency, which can see its value drop by as much as 40% in a single day. The unpredictable and uncontrollable nature of crypto-currencies makes it impossible to make money with a conventional investment strategy.