While blockchain technology has a couple of years under its belt, not many people fully understand what it does or what it has the potential to do. IGaming, on the other hand, has the benefit of being around for decades, causing parents grief as they try to disconnect their children from electronic devices and giving adults hours of entertaining distraction. What do you get, though, when you add the two of these together? Is blockchain technology actually changing the iGaming industry, and if so, how?
Before you can grasp the ways in which blockchain technology is changing the iGaming industry, you must be comfortable with basic details surrounding both of these areas. Essentially, you need a bit of a vocabulary lesson along with a few explanations that can help you visualize what digital coins are, how blockchain operates, and why the iGaming industry would consider changing how it’s been operating for decades, including changing some of its online casino payment methods as well as introducing Bitcoin casino into the arena.
Behind the Powerful Door that Leads to Blockchain Technology
Imagine a world in which people actually cooperate with each other to get things done rather than relying on corporate entities, such as banks and financial institutions to handle financial transactions in order to facilitate business. Enter the world of blockchain – a place where the public at large creates and shares a huge database created by a system in which independent entities process identical commands to deliver a set of transparent transactions. Everything is shared, and everything is visible. You get a distributed database of entries that is synchronized across online locations and semi-supervised by the public.
The beauty of this design is that no one can take center stage and declare ownership and control, nor can they hide data once it’s been entered. In fact, such transparency limits the risk of website hacking and data leaking. Plus, it successfully makes identity theft a virtual impossibility, since no one needs to enter incriminating details such as bank account numbers, social security digits, addresses, birth dates, or any other piece of distinguishing information.
Ideally, blockchain technology protects existing iGaming platforms against outside attacks using fewer resources and less effort. While the force behind this concept is simple, the storage of data is too complicated to readily allow hackers to enter into the equation. This is due to the entire system using secure encryption along with blockchain smart contracts that dictate a pattern of behavior such as “this happens when that occurs”.
One example of smart contracting would be to consider what happens when playing the slots at a bitcoin casino. If five bunches of cherries appear in a series across five columns, then the player wins the indicated jackpot. Obviously, the rules are numerous and varied, but ideally, these guidelines create the system by which the system operates efficiently and without hiccups.
Volatility in the Absence of Regulation
Despite the simplicity, convenience, and transparency of working within a blockchain framework, the system delivers a sense of urgency regarding the apparent volatility of the cryptocurrencies involved within this platform. Perhaps this is the weakest chink in the strength of this technological advancement.
In fact, one can always find volatility within the financial market, and cryptocurrency is not immune from this type of upheaval. For one thing, the value of cryptocurrency seems to go up or down almost by whim, and it may do so in less than a single day. Truthfully, this fluctuation is often due to changes in the public’s perception of its value, unfortunate breaches in security, and the media’s portrayal of digital currencies such as litecoin bitcoin, and ethereum. Limited option value can also play a role in this.
The Emergence of Cryptocurrency in the Online Gambling Arena
Every online casino payment method has its value, which often comes with advantages or disadvantages depending on your point of view. The use of cryptocurrency as an online casino payment method delivers fewer disadvantages than the use of traditional methods such as credit cards, bank wires, debit cards, and checks. More importantly, cryptocurrency payments come with lower fees, including no fees at all. Plus, this type of online casino payment method processes quickly and never includes chargebacks. It’s not difficult to see why blockchain technology is emerging as the king of the iGaming industry.
Blockchain’s Influence in the iGaming Industry
Game-related information is traditionally stored on servers owned or controlled by gaming platforms. This data includes player information, financial details, gaming software, gaming technology, and player history logs for game play. All of these details are at risk of being exploited through cyber attacks, creating the opportunity for identity theft and improper transfer of funds.
On the other hand, blockchain technology delivers platforms encompassing a decentralized network of storage points and code-processing nodules in an open environment that is neither owned or controlled by a single entity. As a result, the risk of exploitation is minimal and virtually non-existent, creating an i-gaming platform that that does away with all of the negatives associated with traditional platforms.
Backing by regulatory gaming authorities further validates the value of blockchain technology in particular and cryptocurrency more specifically. The recent emergence of bitcoin casinos and their ensuing popularity also lends authentication to the belief that blockchain technology is here to stay as it completely transforms the iGaming industry to a venue offering a higher level of security, transparency, convenience, and intuitive performance than the world has ever seen.
Disclaimer: This content does not necessarily represent the views of IWB.