The Impact of Blockchain Technology on Online Casinos

Online casinos and online gambling has seen a meteoric rise in recent years. Players that were unable to enjoy the excitement of gambling can now experience all their favorite games from the comfort of their own homes. On the whole, the online gambling and online casino industry has brought entertainment - and some luck - to millions of players worldwide. But it has also gotten the attention of some unsavory characters who look to infiltrate and take advantage of casinos and players by stealing and hacking their sensitive information. That's a main reason many gamblers are still unsure and tentative about joining an online casino.

Enter blockchain technology. A mainstay of the cryptocurrency world, blockchain technology is being adapted by more online casinos as a way to prevent their systems from being compromised. Today, we're going to take a closer look at the advantages blockchain technology offers online casinos. Let's get into it.

What is blockchain technology

If you've dabbled in the crypto world then you've no doubt heard the phrase 'blockchain technology'. It's the pillar of cryptocurrencies like Bitcoin and litecoin. But what is it exactly?

A blockchain is a distributed database or ledger shared among a computer network's nodes. Basically, they maintain a secure and decentralized record of transactions. They can be used to make data immutable - which means that data cannot be altered in any way.

So how does this cutting edge technology benefit the online casino industry? In a few crucial ways…

Blockchain technology offers enhanced security

If you ask a player what the number one thing they want from their online casino is, the vast majority is going to say security. Players are risking real money and entering their personal and financial information into these casinos. They're trusting that these casinos will keep that information safe and secure. Blockchain technology does exactly that.

Because of the way blockchain technology is built, it makes it impossible for hackers to tamper with the system. This means that players can trust that when they enter their credit card information or crypto wallet or other personal information like emails and home addresses, it's all going to be kept secure. If a player can trust that an online casino is going to keep their information safe then they're much more likely to continue playing that casino. So it's in the casino's best interests to do everything possible in order to keep players' information safe. It's just good business on their part.

Blockchain technology also offers a level of transparency that is beneficial to players and online casinos. When a site uses blockchain technology, every transaction on that site is recorded on a public ledger. Doing this ensures there's no fraud or other questionable behavior going on within the casino itself.

Blockchain technology allows for faster transactions

If the number one concern for a player of online casinos is security, number two is most likely being able to get their winnings out as fast as possible. There's nothing worse than hitting a big win on a slot but then having to wait a week before you can get your money out. The same goes for deposits. Players want to deposit and play right away. They don't want to have to wait for their money to clear.

With the sheer amount of players online and playing at any given time, online casinos need to be able to process all of those requests and information quickly. Blockchain technology allows them to do just that. Blockchain technology is a peer-to-peer network. That means there's no need for third party intermediaries like banks. Why's that matter? It eliminates the need for verification processes. Players can deposit and start playing their favorite games instantly. This also means they can withdrawal those huge winnings and see them in their accounts quicker.

The online casinos that offer faster deposits and withdrawals are going to attract more players. It's as simple as that.

Blockchain technology lowers costs

it's not just the players who benefit from blockchain technology. The casinos themselves can benefit as well. Because blockchain technology eliminates third party intermediaries, online casinos have lower transaction costs. This allows the online casinos to then pass those savings onto the players by offering them larger bonuses and welcome packages, which is another way they attract new players.

Conclusion

Blockchain technology is still growing and adapting and because of that, it's not used by the entirety of the online gambling industry. There are reputable casinos that don't use blockchain technology. But those that are can offer players enhanced security, faster deposits and withdrawals and lower their transaction costs. As both of these industries continue to grow, we don't see any reason why they won't continue to find a happy balance and partnership that will benefit all players and equal a positive gaming experience for all.