Blockchain Technology is Transforming Virtual Gambling
Since virtual gambling originated approximately thirty years ago, so much has changed. Virtual gambling has been evolving as a cultural phenomenon, impacted by the rise of complex government regulations as well as innovation and technology. Blockchain may be the most disruptive technological development since the industry’s inception. It is commended by enthusiasts for transforming gambling by improving transparency and trust in the industry, while lowering costs and offering new opportunities for business growth.
Transparency and Fairness
Information sent or received via blockchain cannot be edited, altered, or revised once a transaction is completed. For most blockchains the information sent can be viewed by everyone interested. This guarantees greater fairness in the virtual casinos using blockchains for gambling. Rules and terms of transactions cannot be violated, as fraudulent activities would be easily exposed to the public eye. This transparency has increased trust in virtual gambling, which is critical for gamblers and operators alike.
Using third parties involves sharing one’s personal information with them. This could be anything from passwords to home address. Blockchain technology makes it possible to gamble anonymously, as long as the law allows it. There is no need to exchange information. You only need to exchange value to start gambling. This comes as a big relief for gamblers who do not feel comfortable exchanging their private information with a third party they do not know or have not even heard of before.
Whether it is the online gambler or the operator benefitting from decentralization, using blockchain creates numerous opportunities to lower costs. There is no need – for example – to pay transaction fees to third parties like banks or payment providers, nor does any party depend on them. This brings simplicity and lower costs to the virtual gambling ecosystem as a whole. Gambling operators can choose to lower house edges or transaction fees, and can easily incentivize gamblers with starting bonuses. Some blockchains have a Smart Contract mechanism, which lowers costs even further.
Legal and Growth Opportunities
Regulations and legal issues remain challenging for the industry. Virtual gambling is dependent on so-called “licensing authorities” to be able to legitimately offer services. Some geographical areas allow virtual gambling, while others do not. Blockchains; however, are decentralized all over the world and so transcend geographical borders. If an online gambling operator uses cryptocurrency to exchange value, will it still be subject to these licenses and jurisdictions? Well, blockchain-based gambling operators will still need to register at a specific physical location. Fortunately, some places on the world map see blockchain as an economic opportunity. A number of nations have opened their doors to blockchain and cryptocurrency businesses and are offering legal freedom and favorable tax regime to those that settle in their jurisdictions.
Text by Contributor @lordcatoshi