Cryptocurrency is rising to disrupt world industries
- the Gambling Industry
Online gambling businesses started appearing in the 1990s. It was a time when the internet was taking off commercially, which was used for the transfer of many land-based industries into the virtual world. The gambling industry was one of the first to reap the benefits. Now, they have taken their interests in cryptocurrencies.
If you analyze the trend for different types of cryptocurrencies-linked casino keenly, you will be able to see skyrocketing interest among the users.
Cryptocurrency casinos and games just appeared in the market recently, but they have already taken a market share with the crowds and have consistently grown a fan club that rejects online casino games for fiat money.
Online casinos and cryptocurrencies are said to be two technological inventions that have been waiting to meet, a match in heaven. Crypto casinos and betting sites have so many upsides to traditional online casinos. Its players will be able to enjoy a safe, trust-free gambling environment, faster withdrawals, and instant deposits.
Many industries are always slow to accept any new changes as many do not want to take risk. Many have chosen to wait to see how they’ll affect the industries that are quick to accept them. The fear of taking risk as the risks are usually associated with losses. But that is a different case in the online casino industry.
Redesign of the gambling industry has not been rare. However, most of them are only to satisfy different types of players by creating new games. Many gambling platforms need to embrace technological advancements to follow latest trends as the demands of the online gambling market is ever-changing.
The Role of Cryptocurrency in the Online Gambling Industry
BCH Bitcoin Cash , XRP Ripple, ETH Ethereum are the most popular types of cryptocurrency that you will find at top sportsbooks and online casinos. Many players love using them primarily because of the safety, security, and speedy transactions that they offer. The benefits are not only enjoyed by gamblers but also online casino operators as well.
The benefits they can provide are listed below:
1) Enhanced Safety and Security
Cryptocurrency has been able to come up with various safety mechanisms. With cryptocurrency, all of the transactions and your private data will be safely secured without having to fear that they’ll leak since blockchain technology provides one of the safest ways of doing transactions online.
Also, it will not be possible to manipulate the transactions that you make. Betting privately can also be done by using any type of cryptocurrency allows them to make deposits anonymously.
2) Complete anonymity
Continuing from the first benefit , anonymity is another indisputable advantage of the blockchain. Financial institutions are known to have access to user transactions.
It will be causing problems for users from certain countries of the restricted areas if the gambling (gaming) sites contain numerous transactions history.
When gambling sites implement cryptocurrencies, such institutions will not use third-party services to receive payments. Instead, the payments are conducted directly between the operator and the player. In this case, banks will have no chance to track the gaming activities of their customers.
When using alternative payment methods, players are not required to provide their ID, bank account info, address, etc. In fact, all that is needed is a username and details of the electronic wallet.
3) Global scale
Cryptocurrency gambling sites have a huge global market, which implements usage of cryptocurrencies. Compared to traditional online gambling sites, banks usually charge a fee when players try to exchange their currencies. Therefore, both operators and players will be charged the exchange rate. With implementation of cryptocurrency, there is no need to exchange currencies.
Cross-border crypto transactions are also extremely fast compared to regular cross-border fiat transactions. This is due to the borderless nature of the cryptocurrencies.
Distributed registry technology protects the users information through encryption and at the same time eliminates the need to contact financial institutions.
4) Fast and Affordable Transactions
By using any of the popular cryptocurrencies available in the market, you can enjoy safer as well as faster transactions.
Cryptocurrencies allow deposits to be instant and earnings can be withdrawn as quickly as one minute all the while remaining anonymous. If you decide to validate and verify yourself, you can find all of your transactions on the public ledger that many cryptocurrencies use.
Cryptocurrencies are also cheaper (in some cases not even $0.001) to be used since all of their transactions do not need to pay massive fees as compared to traditional methods. Implementing cryptocurrency helps the regulators to collect low fees on transactions to attract players. This can be done as they do not involve third-parties in their transaction processes. The only thing that crypto users pay for is the computing power that is used in the mining of cryptocurrency coins.
5) Provably fair
Provably fair gambling have been the greatest attractive benefit of online gambling sites of all time. The fact is, there are tons of fake online gambling sites out there that offer fake odds to cheat it's player.
Provably fair gambling is the process whereby a player can verify that the outcomes of games have been fair in real time. With this process, players can make sure that their game is carried out with fairness with provability.
It makes use of three pieces of technology:
Random Number Generators
Seed Generators
Hashing
Random number generators generate millions and billions of numbers per second that can determine game outcomes. The seed generators then create the numbers which are fed into algorithms. This will then determine the outcomes. In provably fair systems, players get to add a seed number, ensuring the casino isn’t in control of the outcome.
Hashing is the transformation of a longer string of data into a shorter string. The seed number will be hashed and encrypted. The cryptographic hashes at the gambling sites are considered unbreakable and you can trust that they haven’t been tampered with.
Let’s illustrate a game of blackjack.
The casino would shuffle the deck and provide the player with a hash of the shuffle outcome.
The player would then provide a seed (randomly generated or generated and replaced by the player manually) that changes one of the cards or some other factor of the game which neither party is aware of.
The card is dealt, and you either win or lose.
The deck is laid out both as it was originally and as it was after the player provided his or her seed
The player can then verify that the hand was fair (provably). The casino cannot realistically break the hashes to influence the seed you provide to change a factor to a desired one in the game.
Regulation & Restrictions
The fast growth of cryptocurrencies in online gaming have been urging governments to set regulations due huge interests in the sector. China is now rushing to find a way to legalize the industry. There are more than 700 million internet users in the world. The industry is now over $60,000 billion as an astonishing half of them frequently play in online casinos.
Cryptocurrencies will see a rise in use in the coming years.
Closing thoughts
Cryptocurrencies and online casinos are a match made in heaven. Online casinos have only become more popular as their fans are now able to engage whenever and wherever they wish.
Cryptocurrency casinos are a product of the digital age, and they have already won the hearts of a myriad of online casino fans.
There will be no room for paper and coin commodities in this digital age. Cryptocurrency and casinos will continue to work together in synergy.
Hi dear reader, thanks for reading till the end !
I am the writer of this article Wee, I will be writing a series of articles where I describe (and document the history of) cryptocurrencies disrupting major industries in the world. This will be therefore be the first chapter of
The Rise of Cryptocurrency - Disrupting World Industries.
The rise of cryptocurrency in the Gambling Industry