Blockchain in Gambling: Advantages of Application

Distributed ledger technology is widely used in various industries, including the online casino niche. Digital platforms implement cryptography to enhance security, increase profitability, and improve development.

From Rosloto experts, you can learn more about the advantages of cryptocurrency gaming sites and order the implementation of innovative projects or the integration of additional services.

Basic Information About the Technology

Blockchain is a method of storing, transmitting, and verifying data using separate arrays combined into a single chain. The system is reliably protected and resistant to changes.

Each part contains a certain amount of detail. If you delete one piece, it will be impossible to decrypt the message. The encoded information is stored simultaneously on several servers.

The key feature of the tool is its decentralised structure:

1. A peer-to-peer protocol is used to transmit data, which guarantees the anonymity of both the sender and the recipient.
2. Each element contains details on the previous block, as well as an encrypted history of transactions within the system.
3. It is possible to view the message only after receiving all arrays, which prevents information leakage.

The popularity of the technology in the iGaming environment is explained by the fact that third parties cannot decrypt the data, so anonymity is guaranteed.

Characteristics of the Blockchain

The principle of the distributed ledger is the basis for the circulation of digital funds.

Virtual coins are widely used by both casino owners and their clients due to the following undeniable advantages:

Guaranteed Protection

Reliable encryption of information allows people to conduct financial transactions without the risk of losing funds. To perform such operations, entrepreneurs do not need to obtain a licence. All transfers are carried out without commissions.

Instant Processing

Monetary settlements, which include intermediaries (banks or payment services), can take a few business days. Blockchain ensures almost immediate crediting of funds. In rare cases, delays are possible, but they usually do not exceed several minutes.

Wide Coverage of Users

Digital assets are a trend in the modern financial world. They are in demand in many countries. The decision to integrate a crypto module into an online casino increases the reach of the target audience.

Besides, projects do not have to adapt to the legislation of each market. To make transactions, users only need any device with Internet access.

New Investment Opportunities

The cost of cryptocurrency is constantly changing, the rate fluctuates daily, and sometimes, there are sharp jumps. By accepting such money from customers and storing it, online casino owners can significantly raise their capital in just a few days.

Operators do not need to invest their funds in tokens: finances are accumulated at the expense of income from the interaction with gamblers.

Blockchain Application in the Entertainment Niche

In the casino industry, the technology is used in 2 key areas:

Cryptocurrency Transactions

There are 2 main ways to implement tokens on iGaming sites:

1. Exclusively crypto settlements — all transactions are carried out only in digital assets.
2. Combined approach — along with fiat money (euro, dollar, etc.), Bitcoins, Litecoin, and other tokens are used.

The second option makes platforms more flexible: while maintaining a traditional audience used to standard payments, entrepreneurs simultaneously attract a new generation of players.

Gamblers choose cryptocurrency for several reasons:

1. Guaranteed anonymity. To make a deposit and withdraw prizes, there is no need to enter personal data — full name, bank account number, etc. The ability to maintain confidentiality attracts bettors from all over the world.
2. Minimum bids. Digital assets can be divided into tiny parts, which allows customers to replenish their accounts with small amounts.
3. No commissions. As a rule, cryptocurrency transactions do not require additional costs. Unlike bank transfers, where contributions can reach 5%, payment services charge no more than 3% for each operation.

Game Development

Blockchain is actively used in the creation of casino content:

• card entertainment;
• slots;
• casual games;
• multiplayer fishing simulators, etc.

It is worth paying special attention to a new generation of products — crash solutions. Their features are the continuity of the process, a large selection of social functions, and support for cryptocurrency settlements.

Among the most famous types of crash entertainment, we can highlight the following:

• Minesweeper XY;
• Aviator;
• Space XY, and others.

Products based on distributed ledger have several advantages:

• multiplayer mode;
• unique functions;
• original mechanics;
• large payout ratios;
• intuitive interface.

It is also worth noting the Provably Fair tool used in blockchain games. This algorithm guarantees the fairness of the session’s outcome, allowing clients to independently verify the authenticity of results and ensure the transparency of an online casino.

The Future of the Technology

Distributed ledger continues to actively develop and is used in many areas.

Among the main advantages for the gambling industry are:

1. Increased user confidence. Modern security methods that have proven their effectiveness, as well as reliable data transfer methods, allow entrepreneurs to significantly improve customer loyalty.
2. Expansion into new markets. Many countries recognise cryptocurrency as an official means of payment, which helps iGaming portals reach a wider audience.
3. Simplification of business launch. To process transactions in digital assets, there is no need to integrate complex software — it is enough to create an electronic wallet. This greatly facilitates the opening of a virtual casino.

Let us consider how the innovation will help change the entertainment industry:

Introduction of NFTs

Non-fungible tokens can be used as internal currency or game assets, such as:

• artefacts;
• weapons;
• clothes of characters;
• access levels, and other elements.

Many casino platforms include NFTs in their loyalty programs. For example, upon reaching a new level, a player receives a valuable asset that can be used to unlock exclusive rounds, participate in tournaments, etc.

One of the first developers to implement this tool in a bonus system was Evolution Gaming. Its NFT Megaways slot provides the ability to receive a CryptoPunk token.

Regulatory Issues

To date, only a few jurisdictions have officially approved the operation of platforms that use virtual coins and the creation of content based on decentralised technology. In many countries, this subject is still under discussion.

Among the progressive regions, it is worth highlighting the Isle of Man. Already in 2017, it was allowed to accept bets and pay rewards in digital tokens.

In 2019, the regulator introduced the possibility of voluntary licensing for providers of blockchain-based software. The state has even created a specialised department for the development and support of such initiatives.

In the coming years, positive changes are expected in such jurisdictions as:

• Curacao;
• Malta;
• Latvia;
• Estonia.

Further growth of the blockchain sector in the entertainment niche will depend on the pace of legalisation and regulation by the leading gambling commissions.

Advantages for the Casino Industry

With the advent and implementation of distributed ledger technology in the niche, business owners have received new opportunities for running and developing their projects:

• decentralisation of data, which significantly increases the level of protection and eliminates the risk of hacking;
• transparency of information transfer;
• automatic authorisation of all customers;
• use of cryptocurrencies and anonymity of operation;
• no fees for transactions.

The Main Things about Blockchain in the iGaming Segment

The application of cryptography in the industry allows entrepreneurs to guarantee the protection of funds and confidential data. That is why casino owners are increasingly choosing digital tools for money transfers.

The list of key advantages includes:

• Guaranteed security. Distributed ledger technology breaks information into separate blocks, which significantly enhances the protection of entertainment portals.
• Instant transactions. Banking operations can take from a couple of minutes to several days, while cryptocurrency transfers are usually carried out immediately.
• New entertainment formats. Database decentralisation has opened unlimited possibilities for gambling content providers. Solutions with the Provable Fairness option are currently becoming extremely popular.
• Expansion of the audience. A huge number of users strive to maintain anonymity on iGaming sites. Blockchain allows people to play without disclosing personal information.

The Rosloto studio offers consulting services, as well as assistance in creating and promoting online casinos. Our specialists will help you choose advanced software solutions that will attract customers and make your project profitable in the long run.