Blockchain and gambling: the industry progress
With technology development, gambling is taking the shape of more complex infrastructure with wide range of gambling games and constantly developing gaming solutions. Gamblers desire to push their luck which allows the market to grow in any, even times of crisis. However, along with the growth of the industry, the problem of operator dishonesty is becoming more critical.
In gambling, where the risk of financial loss is a constant companion of any player, trust comes to the fore. But how can a gambler trust the platform if there is always the risk of non-payment of money, dishonest outcomes of gaming sessions, if every game process is opaque and hidden from the user's eyes?
Today, a solution to the problem of players’ confidence in gambling operators is the introduction of blockchain technology.
Blockchain is a decentralized database, completely autonomous and transparent. It is called the New Internet and is compared to DNA, but the main thing is that the whole blockchain is a huge array of constantly updated information which is unchangeable, not falsified and available for verification by each user.
The advantages of introduction of the blockchain technology are many for both players and operators. Let's call the main advantages:
- Growing players’ confidence in the casino due to the impossibility of falsifying the outcome of the game. Today, online gambling is an opaque structure with a high risk of slots delivering deliberately false results. Blockchain is able to completely change the gambling infrastructure and make clear the process of working with a random number generator and conducting transactions. For the industry, this will result in an increase in the customer base and a decrease in marketing costs.
- Guarantee of each transaction security through the use of smart contracts which are algorithms that automatically fulfill the conditions of transactions. Only when each of the parties fulfills all the terms entered into the smart contract, payment is made, which makes it impossible for a player or operator to cheat.
By gambling in the casino, the gambler trusts the operator with his money, and the owner of a platform has the technical ability not to pay the winnings, to substitute bet data and its result. At the same time, the player is also able to bring troubles to the operator, for example, by depositing money from a bank card, losing it and then contacting the bank to get a refund. The player can win the process.
The blockchain system is modernizing the conditions for building confidence between the parties. However, today there is still no product on the market that fully reveals the possibilities of a distributed ledger.