Gambling In Decentralized Casinos
Decentralized gambling could forever change the iGaming industry. In the same way that Bitcoin decentralized and changed the concept of money, the transparent model of the blockchain presents numerous advantages to both providers and players.
What Is A Decentralized Casino
A decentralized casino is a gambling platform functioning on blockchain technology, where data is not stored in one place. Instead, data is dispersed and scattered across a number of different networks and computers which are visible and verifiable by anyone who wishes to inspect them.
Simply put, the concept of gambling decentralized applications (Dapps) is that they allow for faster and smoother transactions, low-cost casino operations resulting in a lower house edge for players, more anonymity, and provable fairness.
Check Out the Role of Bitcoin in the iGaming Business
Centralized Vs Decentralized
Our modern world runs on a centralized financial system also known as ‘CeFi’. Basically, everything built around money is centralized including services and most likely all casinos you’ve ever visited. The problem with a centralized system is that all power resides within a single authority/group, which makes it susceptible to human error or corruption.
Using centralized services has many risks including mismanagement, fraud, and overall inefficiency.
However, with the power of blockchain technology and mainly Ethereum’s smart contracts, everything is automated and the managing authority is dispersed, which means no one will be able to manipulate it.
Issue With Traditional Online Casinos
The house edge is an important factor when playing any casino game and a major thing to consider when gambling responsibly. However, ever since casinos were created, players were always skeptical of the fairness and the game’s actual odds.
Casino players have no actual way of verifying the integrity and transparency of each house edge themselves other than trusting the regulation/license and community reputation.
The only thing players can do is to verify a valid license, provably fair algorithm, or check online reviews but even that doesn’t guarantee fair conduct. Gambling commissions are known to revoke and suspend licenses of casinos for one reason or another all the time, years after validating it. For example, the Malta Gaming Authority (MGA) suspended and canceled over 25 iGaming licenses in 2019.
That means you could be risking your hard-earned money on a crooked, but a legal, website that has still not been proven for any wrongdoings.
Provably Fair Vs The Blockchain
Contrary to provable fairness, blockchain is an open-source technology that gives players much more control. Blockchain is designed not only to shut down accusations but also to soothe players with a definitive answer so they can finally concentrate on actual gameplay. Virtually anyone can look inside and verify the integrity, on which the house edge functions.
Additionally, every transaction on the blockchain is immutable and impossible to cheat, since everything you do on the blockchain is visible. Nobody has the authority to limit your actions in any way, shape, or form; not even the owners or employees.
More Benefits Of Blockchain Casinos
While the blockchain could finally end the age-old question of casino’s integrity, fair treatment should be included with any service. The purpose of decentralized casinos is not only to assure you but to also improve your betting sessions in many other ways.
The lengthy identification processes and complicated terms and conditions sometimes deter players from even enjoying their play sessions. Regular casinos have to perform a number of regulatory security checks that are even further amplified by centralized banking delays. Simply withdrawing your cash can sometimes take up to weeks including numerous fees on top of that.
Such delays do not exist at a decentralized casino as money is transferred instantly. Through smart contracts, money is exchanged straight from and to your wallet.
Traditionally, players had to register and provide their full name, address, email, bank, and who knows what more. Decentralized gambling takes anonymity to a whole new level. Identity verification isn’t required and sometimes not even accounts for that matter, as money is exchanged through unique wallet addresses.
This is because smart contracts have no need for a third party to verify a transaction. This makes gambling much more accessible especially for people living in countries where gambling is illegal. The combination of no account/registration mixed with the use of a VPN allows virtually anyone to gamble online.
In addition to using your favorite cryptocurrency of choice, many casinos have tokens of their own, launched through ICOs. Tokens are purchased for participating in blockchain casinos, acting as a form of a loyalty program, which can be redeemed for real money or used to make deposits. The distribution of money among platform users serves as an incentive to keep players motivated and entertained.
Although not encouraged, players can enjoy betting games tax-free thanks to the anonymous nature of blockchain transactions. The decentralization aspect of cryptocurrency means it will not be controlled by governments or central banks.
And since there is no link between transactions and personal information players are almost in complete control of their funds.
Are Decentralized Casinos Better?
Cryptocurrencies like Bitcoin are already the preferred choice among igamers and the transparency of a fully decentralized platform alone makes it worthwhile.
However, we are still just at the beginning of blockchain technology, which is still rising to its full potential. The variety of actual blockchain casino games are very scarce and cannot rival the huge lineup of quality slot releases developed by accomplished studios.
Moreover, there are many other factors to consider when choosing an online casino such as welcome bonuses or promotions. Clearly, decentralized applications have a bright future in the online gambling industry, but as of now, they are far from perfect.