Betting on Blockchain
Blockchain technology and cryptocurrencies are transforming yet another industry… gambling. Yep that’s right, if you’re a fan of the tables or slots this could be for you.
I’m sure it comes as no real surprise but there are a LOT of issues in the gambling industry. For starters, how annoying are those ATM FEES?! I mean excuse me, but I’m already wasting all of my money; why does the ATM have to hit me with a $6 fee when it already feels like the house really does always win? Well, well, well, it just so happens that casinos and online gambling platforms are actually starting to accept cryptocurrency. Using cryptocurrency means no paper money, no paper money means no withdrawing from the ATM, and no withdrawing from the ATM means NO FEES! Save the $$$ for the craps table.
Cryptocurrency in the gambling world is certainly a huge plus, but there are actually a ton of benefits that blockchain can bring to the space. For one, as of now, there is pretty much no trust or transparency. Considering that’s one of blockchain’s main claims to fame, it shouldn’t be too puzzling why it makes sense here. People often associate gambling with fraud. In online gambling, for example, many argue that bookies and online gambling platforms aren’t totally fair because they have special software that can alter the result of a game or its process in favor of the operator. How rude! By using a blockchain based sportsbook or online casinos, every transaction is automatically posted and accessible by each user. This makes the gap between the operators and the customers fairly non-existent and in turn, the trust begins.
As I said, gambling and fraud tend to be used hand and hand (helloooo, Molly’s Game anyone?). Realistically, the fraud associated with gambling can mean many things -- from using a fake ID to laundering millions of dollars. In order to gamble, especially online, a fair amount of personal information is typically required. With today’s system, there is no promise that that information stays secure. No wonder there are so many leaks! Blockchain technology doesn’t allow information already stored in the blocks to changed or hacked, so that’s an automatic help when it comes to accessing this data down the line.
Another major issue within the gambling industry are those long-awaited payouts. Thankfully, with the help of smart contracts, that is no longer a worry. If you’re behind on what smart contract are, check out this article I published for distributed.com and get caught up. Since smart contracts are automatic, the payouts will happen simultaneously, plus all of the users can see games’ rates and payout percentages! You could get that money before you even leave the casino… talk about danger.
Is it just me, or does this make anyone else want to watch one of the Oceans movies?