Effects of Blockchain Technology on the Online Gaming IndustryJuly 19, 2018
What is the relationship between Blockchain and online gaming? Will cryptos change the online gaming world in the future? Do we even understand the meaning of ICOs? Will casinos handle the cryptocurrency explosion? There are many questions about the use of cryptocurrencies in the iGaming world. The truth is that blockchain technology is changing the industry.
Blockchain refers to a system with autonomous nodes that process the same instructions simultaneously. The distributed ledger is the most important benefit of blockchain technology. The ledger refers to a shared database synchronized across many sites. Blockchain technology also allows publicly supervised transactions.
Blockchain technology protects iGaming platforms from cyberattacks and hacks by encrypting all transactions and enabling smart contracts. The best systems use the “if…then” formula. For instance, if you spin the reels and hit three diamonds, the online casino has to pay you for wining a jackpot. In contrast, if your bet is on the wrong area (red number) and the ball fails you by stopping on black, the casino will take your money.
Blockchain Must be Regulated
Cryptos and blockchain technologies have some vulnerabilities. The value of cryptos can easily increase or decrease in a day. For example, Ethereum and Bitcoin can lose their value because of bed press, security breach news, and diverse perceptions of value. Regulation is necessary to attract more users. It is also important to understand Initial Coin Offerings (ICOs), which means investors can exchange baby coins for cryptocurrencies.
Advantages of Cryptos in iGaming
Many people prefer cryptos to traditional cash transactions because of the extremely low fees, fast transactions, no chargebacks, transparency, and security. Online casinos are introducing cryptocurrencies and there is no sign of turning back. Malta Gaming Authority is one of the regulatory bodies that are encouraging the use of blockchain technology.
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