Crypto Gambling: The Future of Online Gambling
With the advancement of the blockchain technology, users can take advantage of the security, transparency, and convenience provided by cryptocurrencies. Cryptocurrencies might not be the perfect medium to be used in many financial sectors, but when it comes to gambling, fiat currencies can hardly keep up with the perks provided by digital ones. For example, by gambling with Bitcoin, you get lower fees, higher level of anonymity, security, and experience shorter transaction execution time.
Of course, there are still many drawbacks to using cryptocurrencies on online gambling platforms. You’ve surely heard about the numerous cyber thefts in the crypto world, and about the low probability of ever finding the suspects. Such things have happened before, and not only in the cyberspace, but this time the level of security and anonymity are on a much higher level, so the risk of falling prey to a malicious hacker attack on a crypto gambling website is significantly lower. So, is it a good idea to gamble with cryptocurrencies?
Regulations are the key to providing safety for the customers. Besides regulated markets, solutions such as anti-money laundering and responsible gambling laws should be implemented on all online gambling platforms. But what happens when a gambling platform only accepts cryptocurrencies as payment methods and doesn’t have to ask for a user’s personal data in order to process their transactions? The short answer is full anonymity. The long answer is a bit more complicated. Gambling platforms that offer full anonymity and only deal with cryptocurrencies are the perfect ground for illegal activities – looking at underage gambling and money laundering. They are also open to just about anyone, meaning even people residing in countries where online gambling is illegal (such as the US) with a smart enough VPN can register and play on these websites.
Anonymity is one of the core points in crypto gambling, but there’s also a dark side to it. While every transaction on the blockchain can be seen, it’s not always clear who is behind it. Although miners can trace back to the origin of a transaction if they really try, few will go to that length just to solve a dispute with an anonymous customer. On the other hand, if a person is suspected of breaking the law by gambling online, the transactions can be decrypted fairly easily, especially when requested by authorities. All that to say, anonymity in crypto gambling is a sword with two edges – but it can work in your favor if you’re on a trustworthy website, and you’re not attempting anything illegal to begin with.
With cryptocurrencies, users can participate in gambling activities without worrying about their deposits and withdrawals taking too much time, or exorbitant fees. In accordance with the regulated markets principle, the blockchain technology takes care that each of the transactions is executed once they are placed. They cannot be reversed or repeated, which means that both the customer and the operator has a success guarantee. Furthermore, the process happens almost instantly on the blockchain, after which can be then viewed by anybody. Everything is fair and transparent, not to mention fast – which is crucial when you want to start playing your favorite games as soon as possible.
Fees are another big one. If you’ve been on any casino website ever, you’d know they tend to charge pretty high fees, especially for withdrawals. Don’t forget about your bank or credit card charging you commissions for each transaction, and it can add up pretty quickly. However, with crypto payments, you won’t have to worry about such things anymore, as the only fee you’ll have to pay will be a small flat fee per transaction, charged by the casino.
Fair or not?
Another issue which should be addressed is the provably fair. Provably fair stands for the way people perceive the fairness of the games, and if there wouldn’t be any way of proving that the game results were not fabricated, there would be fewer people willing to bet their Bitcoins on it. The idea behind provably fair is that the customer can see for themselves that the outcome of the game is the only one that could have existed. One method of accomplishing this is by creating two hashing keys (integers of numbers or a string of text). Before somebody bets, the player can set up his own key, and with the key provided by the operator, a unique hash is generated. This gives players the possibility to verify the hash (the result) against both keys.
The world of gambling has changed a lot when it moved from land-based shops to online platforms. Right now, it is undergoing another big change – a switch from traditional payment methods to digital currencies. Whether that will make the industry great again or will break it down is still a mystery, but you should be very careful about where and how you gamble your Bitcoin.