As blockchain technology continues to transform the landscape of business worldwide, more and more industries are trying to come to grips with it and use it to their advantage. Online gaming is no exception. In fact, as with most new technologies, iGaming has been at the forefront of adopting blockchain and implementing it in daily operations.
One of the bestselling points for blockchain is the inherent safety of the system. For many industries, this is a welcome bonus, but for iGaming, it is an absolute must and that alone would incentivize companies in that field to adopt it. The decentralized nature of blockchain makes it almost impossible for hackers to gain access to the system and steal users’ data, including credit card information. This increases the trust customers have and directly leads to an increased user base with higher retention rates. The improved trust customers have due to increased safety is invaluable to companies in iGaming.
Faster and More Secure Payments
Payments based on blockchain technology are the best solution in terms of safety, privacy, and speed on the market today and will remain so for the foreseeable future. As such, any industry that involves online payments is looking to adopt it as quickly as possible. The most renown top online casinos have already built their custom payment platforms based on blockchain and are reaping huge benefits from them. Elimination of middleman and those pesky banking fees has also reduced the cost to customers, so it is a win-win situation for everybody involved with online gaming.
Facilitating Legal iGaming
By removing local jurisdiction from the equation, blockchain technology is practically eliminating illegal gambling and the black market. Mark Cuban, an American billionaire, is one of the most vocal proponents of blockchain in iGaming and eSports and that is why he invested heavily in the Unikrn project, aiming to decentralize betting in eSports by utilizing blockchain.
One of the biggest gripes users have about online betting is that casinos are choosing which games and events you can bet on. They claim to do this in an effort to curtail rigging and manipulation, but many experts claim that this is just a ploy to prevent money loss. With blockchain, you can easily create a system for peer-to-peer betting, allowing you to bet on any event in the world without limitations, as long as you can find someone to bet against you. This is one of the beauties of the decentralized system since no one can forbid you from doing anything you want within the constraints of the system.
People have always accused casinos of rigging the games so that the house always wins, even in the old days. With blockchain and its permanent record and a distributed ledger immune to manipulating, any such action would be impossible to hide. The added transparency is something the industry sorely needs and will stand to benefit from it, despite the initial pushbacks. Users will be able to place their bets secure in the knowledge that there are no hidden mechanisms at work that could hinder their efforts or rig the game.
Prior to blockchain and cryptocurrencies, it was impossible to hide your iGaming habits from your bank and consequently, everyone else. Since banks don’t really approve of iGaming, there were many reports of people’s accounts being closed as soon as they made a deposit to an iGaming platform. With blockchain, you don’t have to worry about your deposits appearing on your bank statements. The process is completely anonymous and the only people who will find out about it are the ones you tell.
For the first time in iGaming, gamers don’t have to depend on the casino to pay out their winnings. With blockchains, they are automatically calculated and deposited directly in their wallets. We have all heard horror stories about casinos and other platform withholding funds from their players, sometimes indefinitely on some bogus excuse. Blockchain technology eliminates that and offers full protection of the winnings to its users, just one of the reasons why players love it.
Decentralization is the key to the success of blockchain technology, but achieving full decentralization in iGaming will be very difficult, if not impossible. There is a lot of money to be collected from various licenses, fees, and of course, taxation and no country in the world will be willing to give that up. Still, even a partial decentralization will be a huge step forward and many companies are already making it.