Blockchain is the latest high tech trend that utilises digital ledgers to ensure the authenticity of each online transaction, making sure that no one can tamper with them. In gambling, blockchain technology protects gaming platforms from hacks, leaks, and attacks.
However, even though this technology makes online casino transactions secure, some isolated incidents have been recorded in the past. Of course, we are talking about the biggest scandal in the history of online gambling — the Absolute Poker scam.
Absolute Poker, one of the biggest online poker sites, stole up to $1 million from its players. Fortunately, the US Department of Justice authorised payments to the players affected by this scandal.
Let’s see how blockchain could prevent such incidents in the future.
Blockchain and Gambling
Generally speaking, blockchain contributes to the gambling industry as a platform that supports the popular alternative payment method that uses cryptocurrencies, and as technology on which gambling platforms are built. These two should not be confused.
For example, a player could play games in an online casino supporting cryptocurrencies, and if they hit the jackpot, they will get paid in crypto instead of getting paid via popular payment methods like PayPal. However, that doesn’t mean the casino operates on a blockchain system, it only means players can use cryptocurrencies to play games.
Cryptocurrencies are becoming the main payment system in the gambling industry. One of the main benefits of using cryptos is that they allow players to gamble anonymously. Also, cryptocurrencies significantly reduce the fees associated with casino deposits and withdrawals since they eliminate intermediaries such as banks.
What’s more, we can expect to see cryptocurrencies like bitcoin being made specifically for the gambling industry, offering low fees and almost instant deposit times. Improving the cost efficiency of financial transfers will positively affect the profit margin of these sites.
Blockchain and KYC
With the increase in popularity of digital systems in the last couple of decades, the problem of identity theft and fraud has become prominent because each company you deal with, from retail outlets to banks, has a different way of verifying your identity.
This is particularly important for online gaming establishments, which is why ‘know your customer’ (KYC) protocols are used to help gambling sites ensure they know who they are doing business with.
Blockchain-based KYC procedures utilise public digital ledger to provide almost instant and secure identity verification. And since the records kept on a blockchain cannot be changed, the problem of fraud could become a thing of the past.
Online Gambling Industry Needs Blockchain
Online gambling is becoming increasingly popular. One of the major concerns when playing on gaming sites is the level of trust that is required among operators and the players. Sure, visiting sites like Casino Kiwi that rate casinos by the quality of service they provide might help you find a reputable casino that suits your gambling style. But who is to guarantee that the transactions you perform on a certain casino site are completely protected and safe?
Although nobody can dispute that pretty much all online casinos use state-of-the-art security measures to ensure that the transactions are safe, occasional security breaches occur. Blockchain is the solution to this issue as the nature of this technology gives more assurance to players, building trust with operators, and keeping regulators happy. Players can be completely anonymous if they choose to, which is important for gamblers who don’t want to share their personal information even with the brands they trust.