As early as the early 90s, the gambling industry was one of the first to recognize the potential of the Internet. Pioneers like Calvin Ayre established the first batch of online casinos and betting sites, many of whom became billionaires in the process.
Due to the fierce competition in the gambling industry, operators are almost always the first to embrace new technologies. They were also among the first to discover and utilize mobile devices, and they caught the wave of Bitcoin and blockchain before almost anyone else knew what they were.
Over time, the impact of blockchain technology on the gambling industry has become more apparent. Here are some changes we can expect blockchain to bring to online casino games, sports betting, and other forms of online gambling.
Provably Fair Games
One of the biggest complaints from players is that they were cheated by online casinos, and these disputes are almost always the same, such as casinos being rigged, games being unfair, etc.
Blockchain has ushered in an era of provably fair gaming built on Bitcoin technology. It works like this: the game engine generates a random number based on a hash, allowing players to potentially change the hash before dealing or spinning. This means that casinos cannot manipulate the outcome of the game.
Even better, all gaming activities are timestamped on the public blockchain. Everyone can see what is happening, so any irregular patterns or cheating behaviors can be detected by auditors.
Seamless Payments
Money is the lifeblood of online casinos and betting sites. It is also one of the biggest problems facing the industry. From slow payments to lost payments, a range of issues wastes the time and resources of operators and players.
Payments also depend on jurisdiction. In countries like the USA, banks block payments to the gambling industry. However, since Bitcoin is a peer-to-peer electronic cash system that does not require a trusted third party to verify transactions, no one can stop players from remitting money for anything they want to do.
Micro-gambling and Transactions
We are entering a world where micro-betting and transactions are becoming possible. On blockchains that can handle small payments, casino apps that can facilitate small bets are being established and launched. For example, Peer Game offers transactions for just a few cents.
Because these blockchains have low fees, small payments become feasible for the first time. This opens up the possibility of making bets of 1/100 of a cent. This can help players manage their spending and enjoy casino games without spending too much money.
Summary and Conclusion
Blockchain will change everything in the gambling industry, and as practical blockchains begin to consolidate applications in the market, this will accelerate. It is an exciting time for the gambling industry, payments, finance, and other sectors.
