The advent of blockchain technology has forever changed the world of online gambling and altered the future of gaming industry norms—for the better. Its in-built features allow for faster, more efficient, and safer online gambling and benefit both online casinos and their users. For example, online keno makes use of blockchain technology, allowing its users to play games like online keno safely, securely, and legally.
But what exactly is blockchain technology, and how has it changed the landscape of the online gambling industry? In this article, blockchain expert Martim Nabeiro tackles these very questions, explaining the fundamentals of blockchain and its importance to online gambling.
What is Blockchain Technology?
Blockchains are digital ledgers used to record transactions. These transactions are stored as a chain of “blocks,” and it is from this that blockchain technology gets its name. The computer systems on the blockchain all have access to this ledger, meaning that each new piece of information added to it can be cross-checked and verified. Fully automated and secure, blockchain is widely used to track virtual transactions and has come to include cryptocurrencies such as Bitcoin.
How has Blockchain Technology Revolutionized Online Gambling?
The secure, transparent nature of blockchain technology means that it is well-suited for use in online gambling platforms. Many casinos now accept cryptocurrency as a form of payment, with some dealing exclusively in cryptocurrency. Even though online gambling was only made legal in Portugal in 2014, it already boasts several well-established online casinos, many dealing with cryptocurrency. There are, for example, many Portuguese online keno sites that benefit from the efficiency and security of cryptocurrency transactions.
This section will explore some of the numerous benefits of casino blockchain.
The in-built features of blockchain technology mean that it is very secure. Its ledger is decentralized and shared across multiple computer systems in the blockchain. This means that each system is individually validated, reducing the risk of erroneous or counterfeit transactions. Furthermore, the risk of hacking is greatly reduced, as gamblers do not need to register any personal information to gamble through blockchain using cryptocurrency.
User Privacy and Anonymity
Data privacy is understandably a concern for users of gambling websites. However, as mentioned above, blockchain technology does not require the user to input personal information. To gamble using cryptocurrency, you need only input your wallet address to deposit money into and withdraw from your wallet.
Traditional casinos are commonly accused of trying to steal people’s money, with many suspecting games to be rigged in favor of the gambling house. Casino blockchains eliminate this worry. Blockchain ledgers maintain accurate and unalterable records of gambling transactions, records that can be verified across an entire network of computer systems.
Through blockchain technology, online casinos are now able to deal in cryptocurrency. This also provides a marked improvement for users of such websites, eliminating the long waiting times and steep fees imposed when making transactions from your bank.
Eliminates Exchange Rate Conversion
The nature of blockchain technology means that gamblers using cryptocurrency can play any online casino game without worrying about exchange rates. Cryptocurrency does not require conversions the same way traditional currencies do, making it perfect for cross-border transactions. No matter where you are in the world, Portugal or abroad, cryptocurrency transactions are quick and cost-effective.