3 ways blockchain transforms iGaming industry
With such tremendous advantages to be had, it is logical to assume that the iGaming industry will steadily shift to blockchain-based platforms.
If you stop a random person on the street and ask them what blockchain is, they will most likely stare blankly at you and shrug. However, if you try with “cryptocurrency,” there is an excellent chance that you will get an answer, maybe even quite a precise and detailed one.
While these two concepts are inextricably linked, the hype surrounding cryptocurrencies in the past decade has overshadowed the enormous benefits of their underlying technology, blockchain, at least in the public mind. Businesses, on the other hand, have kept a close watch from the early days of the crypto phenomenon, largely ignoring the digital coins mania but keenly exploring potential use cases for blockchain.
As can be expected, not all industries are equally open to the adoption of new technologies. It makes sense that those relying heavily on digital infrastructures would be the most progressive-thinking ones. In the case of iGaming, one can argue that operators actually have little choice but to be innovative and open-minded: this is, after all, an industry that exists online and has to deal with unique challenges, so every little helps.
When it comes to cryptocurrencies, iGaming platforms have yet to become real fans although the number of online casinos that accept Bitcoin has been growing lately. At the same time, the industry is well aware of the transformative potential of blockchain, which promises to resolve some of the most pressing issues in the online gaming space.
Let’s take a look at three ways in which this exciting technology is driving the transformation of the iGaming industry.
Building trust through transparency and fairness
Earning the trust of customers is vital for the survival and prosperity of any brand regardless of its industry, but it is particularly critical in the iGaming sector. It is no secret that the industry has had its fair share of rogue operators, which makes it imperative to offer players assurances that no manipulation or fraud takes place.
Blockchain makes such transparency possible because of its decentralized nature and immutability. Everything gets recorded in an encrypted distributed ledger that is tamper-proof and available for all to see. One advantage of this is the guarantee of fair games, which is among the top concerns of online gamblers. To put it another way, blockchain could shatter the old belief that “the house always wins.”
When an iGaming platform incorporates blockchain, it can provide full disclosure with regard to gambling odds and the outcome of placed bets. A key concept here is smart contracts, which IBM defines as “lines of code that are stored on a blockchain and automatically execute when predetermined terms and conditions are met.”
“The fairness of the games is guaranteed by smart contracts – due to their underlying logic, every bet becomes subject to automated digital agreements, making it impervious to fraud from staff or customers alike. If the gambler gets the bet right, the platform automatically delivers the winnings to his wallet. If he’s wrong, the system transfers the placed bet to the operator’s wallet. No need for a supervisor to get involved at any point,” as explained simply in a post by blockchain development company TheBlockBox.
With fairness and transparency ensured, there will be nothing to stand in the way of iGaming platforms earning and keeping the trust of their users.
Enhancing security and data protection
Many believe that the level of data protection and security offered by blockchain is unparalleled in today’s digital world. This is the result of the extremely potent combination of encryption and decentralization.
Since blockchain-based networks have no central focal point to exploit, they are practically impossible to hack. As an industry dealing with a massive collection of sensitive personal information, iGaming can benefit enormously from such exceptional protection.
This also has a huge appeal for online gamblers as they do not have to occasionally submit personal and financial details, which centralized systems require. With blockchain-based platforms, identities are verified just once, after which all personal data becomes virtually immune to hacks thanks to cryptographic protection.
Keeping regulators happy
In general, regulation is a highly complex area with multiple rules and oversight bodies, but it is generally agreed that regulating the iGaming industry is extraordinarily difficult by any measure. Standardization and data protection are two major issues in the licensing process, and the use of blockchain can facilitate related investigations and checks.
Additionally, blockchain can eliminate the various headaches associated with submitting reports to regulatory bodies and conducting audits. It enables the safe storing and tracking of information along with reliable third-party verification, which is essential for compliance and enforcement purposes.
Since distributed ledgers ensure transparency and provide robust data protections, regulators should love blockchain-based platforms. The job of monitoring them becomes easy as all the records are there for perusal, in addition to which the information cannot be altered, which eliminates the danger of fraudulent financial reporting.
With such tremendous advantages to be had, it is logical to assume that the iGaming industry will steadily shift to blockchain-based platforms. If nothing else, it makes perfect sense from a business point of view: with fairness, transparency, and security guaranteed, the number of players is bound to grow exponentially, driving to new heights an already lucrative market.
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