Cryptocurrencies and blockchain networks may have been around since 2008, but it is only over the last 15 months or so that they are being embraced by mainstream markets all over the world. We have already seen the huge increase in Bitcoin’s price over this time, which has been mirrored and even exceeded by various other cryptocurrency tokens. More and more people are buying crypto as an investment or a speculative asset, while there are hundreds, if not thousands, of businesses and entrepreneurs who are using blockchain and crypto to transform their operations. The online gambling space is one such area that has already seen a lot of changes due to the adoption of crypto and blockchain, and there are several benefits to this, as we will explain further.
Online casinos, including Winz.io, are using blockchain networks to process payments and transactions. This is beneficial since blockchain transactions are extremely rapid and also safe and reliable. This means that casino companies are less prone to fraud and can better protect their customers, while also improving convenience. At the same time, their potential customer base is automatically increased, as anybody who uses cryptocurrencies can use their casinos seamlessly. Blockchain networks also store every record digitally, which means that any potential issues can be investigated quickly and easily, with all the information available.
The usage of smart contracts on Blockchain networks will have a huge impact on B2B relations in the casino industry, according to some industry experts. The relationship between operators and affiliates is quite tense usually, with both sides having an incentive to cheat financially. Operators could reduce sales figures, for example, or affiliates could run CPA frauds. However, smart contracts are a perfect solution to this, as they will allow information to be stored and disseminated in a way where it cannot be tampered so that all parties have the correct information to base their deals on.
There is also the likelihood that gambling regulations will transfer over to blockchain networks in the near future if blockchain adoption continues at pace in the industry. All licensing procedures, fraud tracking and prevention, responsible gambling practices, and financial management will take place on blockchain networks, with regulators adopting these en masse. This is undoubtedly a good thing for the industry, as it will lead to clear taxation, a better business environment, transparency of operations, and thus development of the industry as a whole.
Blockchain is also playing a role alongside cryptocurrencies in the gambling sector. Various operators in the gambling industry have launched their own ICOs, with a view to providing customers with their own customized gambling tokens through this. Blockchain-based gambling is set to become as large as regular online gambling in the next five years, although this will look quite different to how it does at the moment. Blockchain-based Esports using crypto tokens, skin loot boxes, skin gambling games, and so on are likely to be the way forward for blockchain gambling rather than traditional slot games.
One of the biggest advantages of blockchain is that it offers greater safety and privacy to players on online gambling platforms. There are records on the blockchain network itself that can prove ownership of money and tokens, as well as provide records of transactions, and these records cannot be tampered with easily. The use of smart contracts will mean that operators will not need to hold user funds any longer, as the money will be deposited into the contract the moment a bet is made. However, anonymity may not be possible on regulated gambling platforms, since it is necessary for the platform to know who is playing in order to protect and prevent minors from accessing betting and wagering options.
While blockchain is very lightly regulated at the moment, we can expect that to change in the near future as more and more companies begin to use this technology. This should make it easier to use blockchain, once rules and regulations are defined, as well as provide protection to users against fraud.
In general, the use of blockchain networks will improve user confidence, due to greater transparency, better security, faster transactions and improved privacy. This should help drive more people towards online casinos and betting operators.