It seems that we hear the word “blockchain” more frequently than ever. But what is blockchain? In short, a blockchain is a database that is shared among a computer network. It’s a chain of connected blocks of information. Blockchain has an important role in cryptocurrency, as it helps to maintain a secure record of the transaction.
As cryptocurrency started being accepted in online gambling venues, blockchain casinos appeared. It revolutionized online gambling, as previously, casinos’ data has always been hidden. But thanks to blockchain, players can monitor the flow of funds and the game statistics. Hence, a blockchain casino guarantees fair play.
What is a Blockchain Casino?
When you hear the term blockchain casino, the first thing you think of is the venue that allows depositing and withdrawing amounts in cryptocurrency. But that’s far from the actual definition of it. In other words, there are venues where you can deposit funds to your account and withdraw your wins with Bitcoin, Litecoin, or other cryptocurrencies, but that doesn’t make them blockchain casinos. Yes, you use blockchain to transfer funds, but that is just the peak of an iceberg of blockchain technology in online gambling.
The venue can be called a blockchain one when it incorporates the technology into its core systems. The venue turns into an actual blockchain hub thanks to automatic payments implemented for each game in its lobby. As soon as you have won, the amount instantly transfers to your wallet. This is a revolutionary concept in gambling, as it makes the deposit-withdrawal format dated and irrelevant.
However, while blockchain casinos do exist, it’s hard to state clearly, whether it’s the future of gambling or just a short-lived trend, which will result in the appearance of niche venues. As of now, on the one hand, blockchain technologies allow gambling venues to reach wider audiences. On the other hand, however, the casino may end up with a limited number of games offered, as not all games are created with the implementation of blockchain technology.
Advantages of Blockchain Casino
Before you start looking for the best blockchain casino, you need to learn all the advantages and disadvantages of such a venue.
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Transparency
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Anonymity
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Security
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Speed
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Low banking fees
The first and major advantage that you get is the transparency of the system. The games are tested for their fairness, and there’s no way for the casino to swindle you. Another great advantage is the anonymity of players. The only information available about you is the name of your wallet. Such venues are relatable, as cryptocurrency transactions are secure. Finally, the payments are faster, and you don’t have to struggle with banking fees.
Disadvantages of Blockchain Casino
With everything mentioned above, you may think that playing at the casino on blockchain is the best thing that can happen to a gambler. However, there are certain downsides to this type of gambling. Cryptocurrency is much more volatile than a traditional currency and depends on various factors, thus you can never be sure about the exact amount that you have won. Full blockchain casinos still have an undefined status in many countries, and thus, they are unregulated.
How Do Blockchain Casinos Work?
The question remains, what happens when an online casino uses blockchain technology, or more precisely, how does it work? Blockchain technology offers secured transactions thanks to the high levels of encryption. Transactions are added to blocks of data and then are verified by the decentralized network. The transactions move directly between crypto-wallets, which eliminates the possibility of a third party involvement. And that’s why the risk of fraud is extremely low, and you don’t have to pay a transfer commission.
The possibility of fraud is also eliminated thanks to the fact that cryptocurrency history cannot be faked, as the attempt to falsify one block of information will affect the whole blockchain network. This technology allows venues that implement blockchain technology to provide players with instant payments, which players can monitor.
Are Blockchain Casinos Better Than Traditional Alternatives?
If you are familiar with cryptocurrencies, then nothing prevents you from playing at blockchain casinos. While you must remember that a casino on blockchain is still a developing concept, there are thousands of blockchain gambling venues that offer games from renowned developers, stylish design, lucrative bonuses, and round-the-clock support service.
Of course, you can opt to play at casinos that offer traditional payment methods, and then you will surely understand the benefits of blockchain casinos. While traditional banking options offer a withdrawal time frame that ranges between 24 hours and a business week, blockchain casinos allow withdrawing your wins instantly. So, in this aspect, a blockchain casino is a better option.
Is Blockchain Gambling Legal?
One question remains about the blockchain in the casino industry, whether it is legal or not. The short answer is yes, as venues that implement blockchain technology are licensed and regulated by gambling authorities. But, you need to keep the jurisdiction of the casino and the one you are in before you decide to play at a blockchain venue. Being from one jurisdiction as the venue you are playing at, allows avoiding all the problems that are connected to the fact that cryptocurrencies legal-wise are still in the gray area.
