It’s been an unexpectedly good year for blockchain and cryptocurrencies. Economic uncertainty, driven by global slowdowns in the face of a pandemic, has seen renewed interest in currencies that don’t rely on traditional banking institutions. Bitcoin, while it may not return to the heights it reached in 2017, continues to fluctuate in an upward direction.
Online gambling and casinos are often early adopters of novel technology, and cryptocurrencies have been no exception. Many gambling sites have supported crypto transactions for years, but we expect to see even more focus on blockchain tech going forward.
Players at online casinos favour virtual currency transactions for two main reasons – speed and security. Crypto payouts are often instantaneous, so players are not left waiting for their money after a win. You can find out more about casinos with fast payouts at MrCasinova.com, including crypto casinos.
The blockchain allows for transactions that are completely anonymous and secure, but it is this anonymity that has thus far prevented many of the major casinos from considering crypto payments. At present, most gambling regulatory authorities require all casinos to undertake rigorous KYC procedures, including matching the name on a casino account to the payment method. Because of this requirement, crypto has been viewed with suspicion by the regulators.
This may well be about to change. Crypto, far from being a flash in the pan, has been around for more than a decade and has proven its staying power. Now is the time that we will start to see it shift to the mainstream, as global demand increases. This year, Facebook expects to launch their own digital currency, known as Libra.
As the use of these alternative currencies becomes more widespread, we predict that the gambling regulators will rethink their position. Within the next few years, it’s reasonable to expect that many of the major online casinos will happily support crypto payments.
Digital currencies can exist because of the underlying blockchain technology. The tech allows transactions between users that don’t rely on intermediaries, unlike when using fiat currencies. The information stored in the blockchain cannot be copied, and the records have no central location. In terms of security, nothing can match it.
Blockchain technology has many applications beyond currencies, and lends itself particularly well to online casinos. Operators can now choose to add their own branding to a blockchain-based white label casino platform, with considerable advantages.
The first is total transparency of all gaming activities across the platform. Everything is permanently recorded in the blockchain ledger, and the games are programmed in such a way that they can be proved to be completely fair.
The other advantage, as mentioned earlier, is the instant payout times. Blockchain casinos deal in digital tokens that don’t need to go through the checks and verifications that fiat payments need, as the security is built into the system. Similarly, regulatory compliance can also be integrated into the casino design – for example, by fixing limits on spending.
Taking a cue from online video games, blockchain could potentially allow casinos to develop their own financial ecosystem based on a custom crypto coin. In the gaming sector, many are now jostling for position as the top digital currency for video games.
For gamers, the idea of a specialised gaming cryptocurrency is gaining in popularity. As well as the aforementioned aspects of security, transparency and speed, the potential of such a coin could revolutionise the way people play games online. Trading within virtual worlds could take on a much more complex and interactive aspect, and could even link players from entirely different games.
There are obvious parallels between video games and online casinos, and so the development of one or more specialised online casino crypto coins cannot be too far off.
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