Blockchain and The Gambling Industry: How New Technologies Affect Gambling?
First, let’s understand the concepts of blockchain and gambling, and the general info about these terms:
- Blockchain – is a type of database. A database is a set of information stored on an electronic computer system. Information in databases is stored in a table format with the idea of simplifying the search and filtration of specific information. According to Investopedia, one key difference between a typical database and a blockchain is the way the data is structured.
Blockchain technology – is a time-stamped series of immutable records of data that is managed by a cluster of computers not owned by any single entity. Each of these blocks are secured and bound to each other with cryptographic chains.
- According to Wikipedia, gambling – is the wagering of money as a stake on an event with an uncertain outcome, with the primary intent of winning money or material goods. Thus, you need just three things to pay attention to – consideration (an amount wagered), risk (chance), and a prize.
It is a kind of game, where you risk money intending to win some monetary prize. The outcome of the wager is often immediate but it is not a rule, longer time frames are also common. It depends on what kind of bet it was, for example, if it is a card game – the outcome is right after the match, if it is a real-time lottery – the outcome is immediate.
Are blockchain and gambling related? How if yes?
Blockchain has nothing to do with gambling directly, but there are some interesting points to note.
For example, blockchain is directly related to cryptocurrency assets, and many people mistakenly consider all cryptocurrencies to be gambling. This is completely wrong – cryptocurrencies are financial instruments.
The second misconception is related to the fact that gambling is a scam. It is wrong to think so because modern gambling is more about gaming. And in games, there is no place for “deception”, but the “rivalry” is present.
Even though there is no direct connection between blockchain and gambling, they can work great in tandem. Why? What’s the secret?
In recent years, blockchain has been used not only for mining, servicing and working with cryptocurrencies, it is gradually coming into various areas of business.
Gambling is a very broad concept that includes a whole range of activities related to gambling games. The most popular types of gambling are considered to be casinos, card games, slot games, and betting on sports or other mass events.
When speaking of the connection blockchain and gambling, the former helped the latter go online. Moreover, it’s not limited to just one thing, there are such online offers as gaming-gambling and betting-gambling.
Gaming includes platforms and services like “blockchain casinos” representing games in the style of dice, roulette, slots, blackjack, etc.
Betting is available on decentralized online platforms for making bets on sports games, famous events, etc.
Here are the main advantages of such a business:
- Transparency – all transactions, including winnings, losses, and payouts, are recorded in the blockchain registry.
- Deception protection – the blockchain reliably stores all the information it carries. You cannot change or overwrite this data. Therefore, the use of the blockchain can be considered a kind of security guarantor.
- Accessibility – Online gambling is available anytime and anywhere.
- Anonymity – both betting and gambling guarantee complete anonymity of users;
- Prompt payment guarantee.
- No third parties involved – only you and the service you use.
- Data Control – it was previously impossible to check how many payments an online casino made. But now, payments can be controlled with smart contracts on the blockchain.
And that’s far from the full list of advantages!
But it is a very important rule – despite all the advantages described above, the risks still exist. Before using any service, be sure to study the information about it. This is not excessive security or paranoia. The Internet is full of advertisements and, unfortunately, often false and pre-paid scam. When choosing a service in which you will invest, it is important to find out the real picture, read user reviews, and more.
So far, the blockchain in gambling has only one serious issue: low transaction processing speed. The world of online gambling games is so dynamic that any delay scares away users and makes them think about alternative options for working with cryptocurrencies.
Where are these services in greatest demand? Today, China is the leader in the demand for gambling based on blockchain technologies, and this is not surprising.
What other uses of blockchain are considered popular in the world?
Blockchain is often used in applications from the following categories:
- payment for goods/services, money transfers;
- mutual settlements, smart contracts;
- health monitoring;
- online voting systems (contests, TV projects);
- structured databases;
- any other software that requires user identification;
- cryptocurrency trading,
The bottom line is that blockchain and gambling are a great combination!
Whether this type of activity on the Internet is suitable for you is up only to you! But if you are already reading this article, most likely your soul already longs for innovation and experiments.
Want to have an account on the cryptocurrency exchange to expand the list of opportunities for working with cryptocurrencies?
That’s an awesome idea! Just keep in mind — cryptocurrencies are also closely related to risk and experiments.
Cryptocurrencies are famous for their volatility, since massive price jumps provide very promising prospects for earning even if you just keep coins in your wallet waiting for a profitable rate for sale/exchange operations in order to earn money.
Do I need some special knowledge to get cryptocurrencies in my possession?
Yes and no. You need to understand how to choose a reliable place to buy crypto, and how to buy it. However, now, many platforms and services offer users a pretty straightforward experience and variety of options to purchase crypto. Popular cryptocurrency platforms even have an option to buy crypto using your payment card. For example, a UK-based cryptocurrency trading platform CEX.IO. They offer quite a list of digital assets and payment options. For instance, you can buy ethereum with debit card using CEX.IO.
To sum up — blockchain made gambling step into a new level. And we’ll certainly see this innovation technology come into more and more industries.
©Mary Ann Callahan. All rights reserved.
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