Gambling is one of those industries that should rush to integrate innovative technologies like blockchain. The distributed ledger technology (DLT) would reduce the high number of potential fraud attempts coming from providers as well as from consumers.
How Can Blockchain Transform Online Casinos?
Blockchain, whose first use case was Bitcoin, has extended its reach far beyond cryptocurrencies. The technology helps entire industries become more transparent and secure. Online casinos, which represent a key segment of the gambling industry, can greatly benefit from the unique features that come along with DLTs.
Many online casinos and gambling sites, like King Casino are seriously considering integrating blockchain and cryptocurrencies into their systems.
First of all, blockchain can significantly increase the level of trust in the online casino market. While the Internet has transformed the gambling industry, it left the door open for many scammers and fraudsters who are expanding their low quality, fraudulent platforms at the expense of naïve players.
One the other side, reputable online gambling platforms who proved to be clean, can suffer from fraudsters amongst players. One of the main issues is a type of identity fraud. Specifically, a user can create multiple fake accounts with the help of fake credentials. Then he might use these accounts for various operations:
- Bonus abuse – the fraudster can take the promotional bonuses from each account and cash in.
- Gnoming – gambling fraudster employs several accounts to push up bonuses and jackpots, then reap the winnings.
- Chip Dumping – the fraudster uses multiple accounts, joining a game, and then deliberately losing to one specific account.
Blockchain can reduce the risks to such frauds to zero, given that each transaction and move is recorded on a distributed ledger that is available to anyone.
Another way for online casinos to benefit from blockchain perks is to accept cryptocurrency payments and transactions. There are several online casino platforms that already allow crypto deposits. This gives players common payment alternatives and helps platforms accommodate to the most recent trends.
It is no secret that digital currencies are the future of money. Right now, central banks worldwide are analyzing the positive consequences of issuing their own digital currencies.
Thus, the sooner the online casinos adopt cryptocurrencies, the better they will integrate into the future.
Disclaimer: The information presented here does not constitute investment advice or an offer to invest. The statements, views, and opinions expressed in this article are solely those of the author/company and do not represent those of Bitcoinist. We strongly advise our readers to DYOR before investing in any cryptocurrency, blockchain project, or ICO, particularly those that guarantee profits. Furthermore, Bitcoinist does not guarantee or imply that the cryptocurrencies or projects published are legal in any specific reader’s location. It is the reader’s responsibility to know the laws regarding cryptocurrencies and ICOs in his or her country.
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