Can Crypto Technology Expand Interest in the Real Money Gambling Industry?
Blockchain enthusiast developer and writer. My telegram: ksshilov
Gambling has always been a polarizing topic, and online gambling has only made opinions flare even stronger on both sides of the fence. One side fears that websites are not being entirely honest and could be cheating
customers, while the other side believes that the convenience of online
gambling may cause those who are borderline addicts to tip into a downward spiral of debt.
The beauty of this situation is that both sides (and many more) will find comfort in the techniques being implemented in the online gambling world thanks to blockchain technology. Through the utilization of decentralized, blockchain-based technology, the gambling industry will be able to transform into a fair, transparent, and safe environment for all.
The Major Current Problems with Gambling
From fancy casinos to spending a night with friends playing cards, online
slot machines, and everything between, gambling finds its way into our
lives. Humans have been gambling for thousands of years and they show no signs of stopping anytime soon.
Yet even with this clear interest in gambling, there are still many people who find the entire practice despicable.
This new crypto technology can’t change overall opinions on gambling (the full bitcoin casino list
), but it can help to clear up some of the current problems that exist surrounding the specific practices used in today’s establishments.
Gambling has a bad reputation, and you’ll often hear people say “the house always wins.” This statement is referring to two different ideas: the
first being that the house always has the best odds of winning, and
second, that anyone who gambles risks far more than the establishment
they bet against.
Rewards (or lack thereof)
Given that the entire purpose of a casino is to make money, they do
everything they can to keep people gambling and to stack the odds in
favor of the house. Along these lines, they are only interested in
sharing enough rewards and winnings that it keeps customers coming back while retaining their edge to make a profit over time
The same can be seen in lotteries and scratch-off tickets — the winner
never wins the full pot since a large percentage (around 40%) is set
aside for the establishment hosting the lottery.
Make no mistake, online gambling makes gambling easier and more accessible for everyone, including those who have problems with gambling. Because traditional casinos are designed to earn as much profit as possible, many prefer to encourage gambling instead of providing the resources to help addicts. There are some options that can be found on current online gambling websites which allow users to limit their own play
, but if they don’t realize they have a problem how can they help themselves?
When it comes to being responsible about gambling addiction, Edgeless
(a decentralized, transparent casino) is working hard to help their users who have problems. Operating an online casino on the blockchain that is fueled by small blockchain transaction fees allows Edgeless to operate with compassion for their players since their bottom line isn’t based on people losing when gambling. Of course, if players do lose then Edgeless makes a profit — but in order to ensure those losses don’t get out of hand Edgeless is considering specific protocols to automatically detect players
who may have addiction problems and helping them accordingly. A company designed to care for its clientele may breed far more trust than the
the traditional style of casinos, who are only out to make as much
profit as possible.
Can Blockchain Technology Fix Everything?
Blockchain technology is very new and exciting. Although it feels like it could be a possible cure-all for the iGaming industry, will it be able to
provide games with the same ease and entertainment that the current
online websites do? There is a certain merit to using cryptocurrencies
for an online gambling website, but after the initial awe wears off many
users may want to revert to traditional gambling websites. But even in
the event that this scenario comes to pass, there are still several
reasons why the iGaming industry should work hard to keep itself
Distribution is far easier using a decentralized approach since gambling regulations vary heavily country to country, often based on the websites’ ability to regulate customer usage. With built-in blockchain technology, such as KYC
(know your client) and AML
(anti-money laundering), it is easy to control who is able to gamble.Transitioning iGaming to the blockchain guarantees the utmost transparency and existing centralized companies will be able to validate their games through decentralized companies in order to prove they are using fair practices.Government regulation is impractical on a global scale, given that every country will want to pass their own set of requirements for online gambling websites. Market self-regulation
is key to continued success on a global scale because it will help keep the decentralized iGaming industry far more consistent across the world — meaning that no matter where you are from or where you are playing, you will be able to place the same trust in the networks.
Blockchain technology isn’t magic, of course, and it can’t automatically fix the iGaming industry. But what it can do instead is create a healthy
ecosystem of decentralized nodes that support specific online gambling
websites, prevent the need for sensitive customer information through
the use of smart contracts, allow for greater profits since the house
will more often have the same odds as the players, and make money
through various means instead of strictly through players losing. This
change in mentality throughout the industry has the potential to lead to
several positive changes, particularly the change of total transparency; the rules, how much information is being collected (and for what), and exactly what the winning numbers/cards/slot chances are.
The Future: Blockchain-Infused iGambling
The blockchain is gaining traction in a large number of industries
But with every single new implementation of the technology, it seems
that there are three more ideas in development. From changing the way
people think about futures contracts
to helping redesign the music industry
in a more artist-centric way, it appears as though everything that
blockchain technology is combined with sees positive results. When it
comes to iGambling, there are various small hurdles for the industry to
overcome before it can flourish. But blockchain technology holds the key
to easily overcoming all of them (bad reputation, low rewards,
But are all of these changes positive? At first glance, there appears to be
a few negative outcomes in regards to blockchain implementation, like
forcing users to learn how to use cryptocurrency wallets and deal in
cryptocurrency. The games themselves may be altered if they are run
through smart contracts since the third party element will be removed,
but even with the small shifts in the way the underlying architecture of
the games function, the enjoyment will remain the same. Think of it
more in the sense of playing cards with your friends instead of playing
cards at a casino. In some cases the level of excitement and enjoyment
may grow alongside larger jackpots, faster payouts, and an all around
more transparent gambling experience.
Decentralized iGaming platforms will certainly be a great option for
gamblers seeking to experience blockchain-based alternatives for a
number of reasons. Gambling on a decentralized platform is far safer for
user data since customers don’t have to send in their credit card information, personal address, or other sensitive data. Specifically, Luckchemy will also offer far larger percentages of jackpots than modern
lotteries, and with everything being traced through smart contracts and
blockchains, customers can rest assured knowing that they are being
given fair odds in their gambling endeavors.
Where to next?
Only time will tell if iGaming will continue to grow in popularity, but given the rising trends over the last few years and the recent legislation that passed
in a few states in the US to allow online gambling, one can assume that the trend in popularity will continue upwards. Combine this with the
growing trend of blockchain technology utilization and suddenly the
perfect scenario comes to light — transparency and accountability
through decentralization that speeds up legalization for more states
within the US (a $450 billion industry
). After all, who wouldn’t want more favorable odds, guaranteed fairness, and increased security surrounding their gambling entertainment?
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