Recent technological advancement has also given birth to a new form of currency called the cryptocurrency which has quickly spread like wildfire to the online gaming industry. Cryptocurrency is basically a digital medium of exchange that uses an encryption technology to secure transactions.
This technology is an advancement of the quest to have a cashless system in the world which began in the 1970s with the introduction of the cheque and later on credit cards. Cryptocurrencies are now accepted in many online casinos and we expect them to catch on fully in the next couple of years. From Bitcoin which was the decentralized cryptocurrency created, there are now hundreds of cryptocurrencies available. Some other popular once apart from Bitcoin include:
Many online casinos and gaming sites have embraced the use of cryptocurrencies with amazing success because of the kind of efficiency and security that is behind the system.
Cryptocurrencies use a technology called blockchain. This technology links progressive list of information called a ‘block’ and secured using cryptography or in simple terms, a form of encryption. So whether you enjoy playing on mobile or desktop, you are assured of speed and security with every single transaction.
Advantages Using Blockchain Technology in Gambling
Below are some of the reasons why the use of the blockchain technology has become so popular in gambling:
Several organizations have experienced cyber-attacks including military installations of the most powerful nations in the world. The service providers of the traditional banking methods of online gambling sites could be susceptible to such attacks. A successful attack on such a service provider could result in the loss of customers’ information which is stored in the systems of those banking providers.
That information could then be used in the wrong way that could result in financial losses. The use of blockchain, however, eliminates any possibility of such loss of information as it uses only private keys which are secured with strong passwords that are impossible that even the best hackers cannot get around.
The use of private keys using cryptocurrencies helps validate ones ‘payability’. Therefore, no personal details are revealed as there are no banks or financial institutions involved. This eliminates the societal stigma associated with gambling as gamblers can gamble without worrying about being judged if their recorded personal details are revealed. You can keep playing on mobile securely and no one will ever give you a suspicious look!
3. Instant Deposits and Withdrawals
Payment transactions using the blockchain technology only take minutes to complete. Contrast this with the 2 to 5 working days on average for example that it takes to complete bank transfers from online casinos. Mobile payment transactions from online casinos are faster but when cryptocurrency is brought into the scene, speed and efficiency are given a whole new meaning!
4. Cost Effective and Tax-Free
The transaction costs of depositing or withdrawal while using blockchain technology is was less than the huge fees charged by banking services providers like PayPal. This leaves the gambler with more money to gamble with.
The gambling websites would also not pay the fees they pay to the banking service provider and therefore make more profits or use the money for promotional purposes. It is, therefore, a win-win situation. Since cryptocurrencies are not subject to any jurisdictions and are not regulated by any financial institutions, it means that no taxes are levied on any prizes won.
5. Removes Restrictions
Despite the fact that some online gambling sites place restrictions on some countries and regions due to security concerns, blanket restrictions on players could disenfranchise even the genuine players. Through blockchain technology, it is impossible to get the identity of individuals and the country or regions they are from.
This enables any player globally to be able to participate in any gaming activity in a website available in their country. This does not compromise the security of the site as the blockchain technology is quite secure.
6. Makes Online Gambling Fairer
Blockchain technology is made several independent nodes that are decentralized and therefore no one can have an undue advantage at any stage of the gaming process.
Let’s face it, as a casino player, you cannot ignore the increasingly pivotal role that the cryptocurrencies are playing in the gambling industry. It is like an unstoppable revolution that is sweeping through the land. The efficiency of online gaming is reaching a new high as cryptocurrencies are simplifying the process further. They making it cheaper for both the players and operators. An increase in returns is already being realized and even though restrictions can be done away with the fool-proof security can still be assured. If you haven’t embraced cryptocurrency gaming already, you better start now to keep up with the latest trends!