There is a lot of controversy surrounding cryptocurrency. Since its inception, many people have labelled this new financial option as another form of gambling. But this all there is to it? Without a doubt, no.
The technology that makes crypto possible is called Blockchain, and like any other innovation, it has a lot of benefits. However, as we explore further, some of the perks are a double-edged sword because they can also be drawbacks.
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A short definition would be that Blockchain is an algorithm that stores information in a manner that makes it near impossible to modify or hack the system in any way. It’s made up of blocks which are a list of recordings tied together by cryptographic protocols.
Those protocols give blockchain systems their secure nature, making them one of the most secure payment methods available right now in the world.
The biggest perk that the blockchain system offers is security in the face of scams. Since anyone can see any transaction made, this provides an extra layer of trust that can lead to more economic freedom for users.
How does Blockchain work
A blockchain system is managed by a network called peer-to-peer or P2P for short. This works like a spider’s web where each peer has a synchronized record called a distributed ledger. The links between peers are named nodes that authenticate new blocks and follow a strict protocol of communication.
Each processing unit connected to the system records all transactions that happen in that system. Thus, making any breach almost impossible since every computer that’s connected knows everything that’s happening.
How Blockchain can improve online gambling
There are many ways in which this technology can improve the online gambling industry. But we will focus on the main ones that overall can enhance the user experience.
Before starting, we want to add that blockchain technology can have many applications. The more it’s expanded, the more valuable it can be in a seemingly more and more dangerous online world.
First, as mentioned previously, there is no risk related to payment data theft because the Blockchain’s decentralized nature makes stealing data almost impossible. Any security breach is detected rapidly and cannot be exploited for long.
More transparency and fairness
Another significant aspect is transparency, considering any transaction is available for anyone to see. This also improves game fairness by making payouts, bets, and game-winning easily verifiable.
Usually, the winning draws are in the operator’s database. But with this technology, the results can be placed inside the Blockchain, making it viewable to anyone from anywhere.
One of the most practical short-term benefits is that any payout will be made in a much faster time. Any payment method that uses blockchain technology can process transactions almost instantaneously without needing any human interference. Furthermore, since the fast withdrawals do not require any additional employees, there are less likely to be any fees involved.
The perks didn’t go unnoticed
Because there are multiple benefits, many online casinos have started accepting them as viable payment methods. The number of promotions from CasinoBonusCA that involve cryptocurrencies shows us that casinos are eager to accept crypto payments, and players are willing to use them.
There are some disadvantages
Although many Blockchain can bring many improvements, there are also some disengages concerning the nature of cryptocurrency and regulatory practices.
The volatility of crypto
The crypto market is volatile. This makes any coin ranging from Bitcoin to lesser-known ones have a fluctuating value that demolishes any possible stability. One crypto can severely decrease in value overnight, taking away many growth opportunities.
Anyone that chooses to invest in this kind of currency will assume a high risk that can or cannot pay off in the long run.
Another problem blockchain technology may face is that its secure nature makes them hard to regulate by the proper authorities.
The Know Your Customer procedure regarding the source of funds that many casinos commonly use cannot be done satisfactorily. Without this, there is lower player protection in problems related to gambling addiction.
Also, the anonymity provided by crypto makes it attractive for money laundering or different types of fraud. For this reason, regulatory institutions are usually reluctant to license online casinos that use payment methods like this.
Is Blockchain the future?
Blockchain is a new technology that cannot be ignored. There are risks, as we discussed but also many benefits. Over time Blockchain can become the next big thing regarding personal finance services.
There are many companies and successful businesspeople that consider Blockchain a game-changer. Some even say that this technology will entirely change the whole financial system in 10 to 15 years.
Now blockchain-related technology is predominantly associated with cryptocurrency, but it can have other applications in the future. However, this is without a doubt an innovation with a lot of potentials. In time we will see how people choose to use Blockchain and how it can expand its usefulness.