In our previous article about technological innovations in the online casino world, we talked about crypto casinos. Today, we wanted to explore this industry further as we feel it holds numerous benefits for online casino gaming. Crypto casinos have revolutionized online banking and casino payment methods as well.
From increased security and privacy to lower fees, we wanted to analyze how these crypto platforms are reshaping the online casino industry.
Enhanced Security and Privacy
The crucial factor in innovating the online casino world is complete privacy and security for the player. Crypto casinos are forging this path through the use of blockchain technology. If you have heard this term being thrown around but are unsure of what it means here is the jist of it.
Cryptocurrency transactions operate on a decentralized network that is not governed by a specific institution such as a bank. Instead, data is stored across a distributed network of computers known as nodes around the world. This means that data is not just on one server but multiple secure nodes at the same time making it extremely difficult for hackers to compromise the data.
Furthermore, each node has to verify the validity of the transaction and valid transactions are grouped together in blocks. These blocks are then processed with unique identifiers among them forming a chain, hence blockchain. Moreover, each transaction is cryptographically signed with the sender’s private and unique key. All of this ensures that transactions cannot be tampered with and that only the rightful owner can initiate the transaction. Once added to the blockchain, all transactions become a part of a transparent ledger to avoid fraud, more on this later.
Distributed Network > Verification > Block Creation > Consensus Mechanism > Cryptography > Decentralized Ledger
Seeing as no single institution is governing transactions and that data about them is encrypted, cryptocurrency payments are one of the most secure banking methods. All in all, there are a few more protocols that go into making crypto casino deposits and withdrawals safe but the process we outlined is the basis. All of these protocols allow for more benefits listed below.
Instant and Transparent Transactions
Soon, the majority of casinos will start implementing cryptocurrency deposits and withdrawals due to their speed. While e-wallet technologies have drastically reduced waiting times over bank wire and credit card transfers, crypto withdrawal speed is on another level. Waiting times for crypto cashouts are a few minutes, sometimes even faster.
This is all due to the Peer-to-Peer network that directly connects the sender and the recipient. There is no need for intermediaries like banks or payment processors to slow things down. What this achieves is the elimination of downtime you would have to wait for an institution to verify your payment making transactions almost instant. Some tokens like Ethereum even have smart contracts that enable fast automated transactions for specific conditions. Let us take a look at average speeds for different tokens (Note that even the slowest tokens are much faster than fiat methods).
- Bitcoin – Generally the slowest cryptocurrency due to common network congestion with waiting times from a few minutes up to an hour.
- Ethereum – Medium-speed transactions that take up to a few minutes or faster due to Smart Contracts technology.
- Tether, Dogecoin, Litecoin – The fastest cryptocurrency options due to lower network congestion that take around a minute to complete.
Moreover, each validated transaction is added to a public blockchain ledger. This creates a permanent and transparent list of transactions replicated across all nodes. As all participants can view and verify the transactions, this drastically prevents fraudulent activities.
Lower Fees and Token Gambling
In terms of finance, crypto casinos have proven to have negligible fees compared to fiat currency banking methods. As we mentioned before, banks do not govern crypto use so there are no fees imposed by an official institution. Furthermore, since the crypto market is competitive with many altcoin options, each cryptocurrency aims to offer lower fees as an incentive.
Additional factors for low fees also include the fact that crypto casino transactions use digital technology to facilitate seamless transactions. This efficiency lowers the costs associated with traditional payment methods. No one is manually processing or managing transactions as everything is done by blockchain nodes.
Current examples of low fees for crypto casino withdrawals include:
- Dogecoin (DOGE): Withdrawal fees are around 1 DOGE depending on the casino.
- Litecoin (LTC): Withdrawal fees are around 0.001 LTC depending on the casino.
- Tether (USDT): Withdrawal fees are around 1 USDT depending on the casino.
These three cryptocurrencies currently feature fees of around $1 or less. More renowned tokens like Bitcoin and Ethereum have larger fees of course but still lower values than fiat methods.
Furthermore, an interesting factor of crypto casinos is the introduction of token-based gambling. This is an innovative idea where players can utilize specific cryptocurrencies or tokens for gaming. This adds another factor of excitement and gamification to the casino gaming experience.
Access to Global Player Base
Another factor that promises a bright future for crypto casinos is regional accessibility. Due to the digital nature of cryptocurrencies, crypto casinos are available everywhere in the world with certain exceptions of course. The global availability ensures that these platforms will always have a huge player base.
Traditional online casinos that feature fiat currency payment methods are limited by the regional restrictions of those methods. As you can see, this is not the case for crypto. As long as the crypto casino’s license allows it, these platforms can have players from all over the world.
The global reach can allow for a diverse gaming community that mutually enhances the overall experience for players. This goes especially alongside the development of more socially interactive games like new live dealer titles and game shows.
Embracing Decentralization and Community
Speaking of the social aspect, one of the lesser but still important elements of crypto casinos is the community. Since there are no banks or other institutions controlling the transactions, the community is responsible for the viability of crypto casinos. The public blockchain ledger is one element of course. However, there is also the fact that the value of each token is controlled by the people.
Community involvement and active participation in the crypto world are the elements that make this platform the future. If you are having inquiries or you need to research something, you do not have to talk to automated databases or customer support. You can talk to real people on crypto forums and social media like Reddit or Discord. Dedicated forum threads are great places to ask questions and learn more about the industry.
You can always have access to reviews, opinions, and experiences from other people as they are the ones governing the use of crypto alongside you. This sense of community in crypto casinos creates a more engaging and immersive environment that promotes loyalty and a dedicated user base.
The emergence of crypto casinos has significantly altered the online casino world in numerous ways. There are plenty of benefits that signify that cryptocurrency might be the future of casino gaming. Of course, there are disadvantages like value volatility and special regulations that need to be put in. However, the positives far outweigh the negatives.
Note that blockchain technology is always evolving so we can expect further advancements in this industry. Whether you are a beginner or a veteran in the online casino world, cryptocurrency gaming might be worth a little research. We feel that the exciting possibilities it offers are making way for the future of online casino gaming.