Blockchain in Gambling: How Can the Industry Benefit From Innovative Technologies
Gambling has always been around: people have enjoyed trying their luck since ancient times. Just like all other activities, this one has changed a lot, especially in the 21st century, when modern technologies knocked on the door of each industry.
The most significant change was going online but it could not cope with the main gambling problems — the lack of trust and a long way to getting the money you have won. Likely, the blockchain technology is finally here to save the day.
Blockchain and Gambling: the Benefits of Partnership
Let’s now take a closer look at the problems of online casinos and betting platforms and see how the blockchain technology addresses them. Here are the main improvements blockchain offers to the gambling industry:
People do not trust online casinos and betting services, they believe that the system itself is programmed to eliminate the possibility of winning and to steal their money. The institutions like banks also show no respect for gambling and some of them can even close your account if you use it to make bets.
Blockchain allows everyone to see the history of all operations: who won and how much, when it happened, and whether a winner got the money. Blockchain casino and blockchain sports betting platform also have crypto-empowered open-source algorithms which ensure that all the random generations eliminate fraud or any tricks.
One of the main opportunities blockchain provides — enhanced security — perfectly works for the gambling industry, too. It eliminates fraud and ensures secure transactions as well as prevents data from being changed or deleted. So the history of victories and payments is not only open but also well-protected and immutable.
Improved Payout Process
As for payments, the process of withdrawal has always been a challenge. In order to get the money, one could face the necessity to deal with different documents and intermediaries as well as time delays.
The blockchain technology introduces smart contracts to the gambling industry. These are self-executing programs that perform certain actions (eg. money transfer) when the required conditions are met.
So, empowered by blockchain, the process of getting money becomes fast and simple.
In the public mind, blockchain is tied to cryptocurrencies and in the case of gambling, it is an appropriate association. Blockchain betting and gambling services allow transactions with cryptocurrencies which widens the audience and helps to get rid of third-party intermediaries like banks or payment services.
It is an ordinary scenario when you have to fill in a number of documents in order to be able to make bets or play in an online casino. The blockchain technology allows keeping your information private so that the operators could not know who is playing via their platforms. On one hand, it protects private data from getting to third parties. On the other hand, it eliminates the possibility of regulating such type of activity which might cause worries.
Reduced House Edge Costs
House edge is a percentage of bets that casino leaves to itself in order to pay salaries and other maintenance expenses. If there is no need for these payments, the casino can take less money which will increase the prize pool allowing users to win more.
People related to the industry believe that blockchain will help to make gambling more socially acceptable and, as a result, attract more users to blockchain-based betting platforms and casinos. This is the effect of the benefits we mentioned above: transparency, security, cryptocurrency availability, and others.
Blockchain solves the trust issues that cause difficulties to users who are already involved in gambling and prevent new users from the involvement. This opens great opportunities to businesses and offers even better perspectives to the industry that is already one of the most lucrative.
If you have an idea of a new gambling product or the improvement of the existing one, we can help you make it a reality! With 7+ years of experience in blockchain and with 20+ blockchain developers on board, SCAND can be your reliable partner in taking all the advantages of the blockchain technology.