Important Reasons Why Blockchain and Cryptocurrencies Are the Future of iGaming

Introduced in 2009, Bitcoin is not only a new form of money but also a unique technology used in a variety of fields including iGaming. It is based on the blockchain, which is a decentralized distributed database where there is no decision-making centre influencing the operation of the network. Thanks to its transparency and independence from traditional banking organisations and government agencies, cryptocurrency allows gamblers and bettors to control their funds and perform transactions without interference from third parties. 

As one of the fastest-growing industries, iGaming has always strived for innovation. So, it's no surprise that the concept of decentralized gambling was first implemented back in the early 2010s, almost as soon as the number one cryptocurrency emerged. Able to solve many pressing problems including slow transactions, high fees and transparency issues, blockchain is now seen as a crucial technology for the future of iGaming. In this article, you will learn if crypto gambling is viable, how blockchain casinos and crypto gaming work, and what challenges the gambling industry will face soon.

Transparency Provided by Decentralized Crypto Casino Platforms

Located on a remote server in the form of applications, online casino games are always perceived as something of a black box as players do not know how they are organised. Therefore, gamblers and bettors are always faced with doubts regarding the integrity of iGaming platforms. Thanks to a decentralized database with immutable records, blockchain allows players to control the integrity of game results themselves. So, crypto iGaming is a wonderful concept where trust is built precisely on technology. 

Decentralized Casino Platforms

While traditional online casinos are run by an operator and monitored by independent auditors and government agencies, their decentralized counterparts use the technology providing full transparency of all transactions. Modern blockchain casino sites and apps employ smart contracts that automate most processes including gameplay in games, distribution of winnings and payouts. 

Increased Trust Thanks to Crypto Gambling Technology

When playing at an online casino, many people are concerned about the security of their personal information and funds, and this doesn't just apply to old-fashioned gamblers who previously favoured land-based venues. However, thanks to its unique properties, blockchain solves a lot of security problems:

·  It stores data in an immutable form. No one can modify or delete records stored on the blockchain. This ensures that game results are protected from manipulations on them.

·  It ensures anonymity and privacy. Since players provide only the minimum required data set for transactions, they do not put their sensitive information at risk.

·  A secure way to store funds and conduct transactions. The main advantage of cryptocurrency is that your digital money is securely protected by advanced encryption technology.

·  Automation of all processes through smart contracts. That is, all withdrawals are processed without human intervention, thus reducing the risk of fraud. 

Although blockchain technology is complex, people who have realised its features and advantages are changing their attitude to online gambling. So, cryptocurrency gambling has a chance to become a worthy choice for those who are sceptical about traditional iGaming platforms. 

Why Players Prefer Blockchain Casinos

Although gamblers are showing interest in gambling using Bitcoin, traditional game studios have been slow to adopt the technology. According to a recent survey of providers conducted by Statista, only about 23% of them are incorporating blockchain-based elements - such as NFT gambling or blockchain slots - into their products. However, advantages such as anonymity, worldwide availability, and fast and inexpensive transactions make crypto iGaming attractive to some bettors and gamblers.  

Compare Online Casinos – Crypto vs Traditional Ones

 Crypto Payments and Other Innovations

Although crypto has the power of blockchain technology behind it, most people see tokens as a way to pay for goods and services. However, so-called ‘next-generation’ games utilising a blockchain-enabled system - with a provably fair system at its heart - are gaining popularity today. 

Using Bitcoin Wallet for Gambling

To use cryptocurrencies such as BTC, ETH or other cryptocurrencies, a user must first register a crypto wallet. However, there are many modern solutions that make wallet registration and fund transfers even easier than traditional banking applications. Moreover, having a Bitcoin gambling wallet with a positive balance, you can register with a decentralized online casino and start playing almost instantly. 

How to Gamble with Bitcoin?

Convenience, reliability and accessibility are the three strengths of crypto gambling. However, how do you get started playing at a blockchain casino using digital assets? Here's a step-by-step guide to crypto gambling:

·  The first step is to choose a reliable iGaming platform. The player should make sure that it has a good reputation, offers gambling options of interest and supports specific tokens.

·  Next, the player needs to register a cryptocurrency wallet and store his private key in a safe place.

·  The next step is to purchase digital coins. The player can buy tokens on a crypto exchange or convert cash for them through a specialised service.

·  Finally, it is necessary to register on the iGaming platform. When choosing a fully decentralized casino, you only need to provide a public crypto wallet address. 

However, there are centralized crypto casinos that differ from traditional ones only in that they support digital assets as one of the many payment options available. Choosing such a platform, the player will have to go through a standard registration procedure with the provision of detailed information about himself.  

Next-Gen Gambling Games

While many gamblers are used to traditional RNG-based games such as slots, video poker or roulette, next-generation games have recently been introduced that utilise a provably fair blockchain-based system. Moreover, they offer a much more immersive and interactive gaming experience that resonates with many gamblers, predominantly younger ones. 

How Blockchain Revolutionized the Mechanics of Casino Games

So, even though traditional game studios have been slow to adopt blockchain technology in their products, the demand for crypto games is gradually growing. Here are a few innovations in the next-gen games highly appreciated by gamblers:

·  Provably fair system. According to this concept, every game result is recorded in encrypted form in a distributed registry so that any player can verify the fairness.

·  Decentralized approach to game decision-making and even development. That is, players can participate in the creation of games and vote for rule changes in them.

·  Opportunity for passive income. For example, by playing NFT gambling games, you can earn tokens which can increase in value over time. 

Many players are also attracted to crypto games for their wider betting ranges. Due to this feature, crypto gambling is suitable for both low risk tolerant players (those willing to spend only a few Satoshi per bet) and high rollers (players looking to bet large sums). 

Features of NFT Gambling

Although blockchain was first used as a payment system, the technology has since proven to be a suitable medium for non-fungible tokens (NFTs). Working like a collector's card or a painting, each NFT has unique characteristics that make it particularly valuable. By adding excitement and engagement to the gaming experience, NFTs have proven to be a great fit for online gambling. 

DeFi, NFT and Blockchain Gambling

Thanks to Ethereum and similar crypto projects, people have access to an alternative to traditional financial products in the form of DeFi (decentralized finance). Forming a powerful duo, DeFi and NFTs have found their application in the gaming and iGaming industries:

·  Virtual assets with real value. Today, some NFT casino platforms provide players with access to exclusive skins, avatars and other in-game items that can be earned or won. Moreover, there are platforms like OpenSea where you can sell tokenized in-game items (NFTs) and thus monetize your gambling achievements.

·  Adding financial instruments to gambling games. Some cryptocurrency gambling platforms also allow you to pledge or farm NFTs to receive dividends from a share of casino profits.

·  Loyalty schemes. Decentralized casinos may also reward players with non-fungible tokens for participating in tournaments, completing tasks or moving up the status ladder. 

Before joining an iGaming platform, a player should find out what is DeFi NFTs and how it works. While the technology can be complex to understand, it provides complete transparency as all transactions are recorded in a distributed blockchain ledger. 

Challenges and Future of Crypto iGaming

So, on paper, it looks like cryptocurrencies and iGaming form a perfect symbiosis. However, in practice, crypto gambling faces a lot of challenges preventing its genuinely rapid development. 

Overcoming Barriers in Blockchain and Crypto Gambling

According to Statista, in 2024, only about 4% of consumers have used cryptocurrency for online gambling worldwide. There are several factors and challenges hindering the rapid development of crypto gambling:

·  Lack of clear legal regulations for crypto casino operations in most countries around the world. Since cryptocurrencies are considered unstable assets by many governments, the integration of tokens into iGaming platforms is significantly hampered to this day.

·  Quite high fees and low bandwidth of most blockchains. However, new networks like Solana have already successfully solved the problems with performance and transaction costs and therefore they are more promising for gambling.

·  Slow user adoption due to the novelty and complexity of the technology behind cryptocurrency. This is the reason why the vast majority of gamblers still use traditional payment methods like bank cards and prefer to play at conventional online casinos. 

Despite the challenges, cryptocurrencies are not just a temporary trend in iGaming. Due to their unique features, virtual assets and the technology behind them look like a sustainable direction for the industry. As regulatory issues are resolved and the number of crypto users grows, decentralized casinos and sportsbooks will increase their share in the iGaming space in the coming years.

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