How Can Cryptocurrencies & NFTs Change the World of Online Gambling
February 2, 2022 (Investorideas.com Newswire) Blockchain technology is set to revolutionize major industries around the world. We are already witnessing some of the changes that have come with this novel technology. The online gambling industry has equally embraced the technology in a bid to augment the iGaming experience.
This article highlights the impact of cryptocurrencies and non-fungible tokens on the online gambling space. Read on to discover more on this hot and trending topic.
A Brief Overview on Blockchain Technology
This brilliant innovation known as blockchain can be summarized as a decentralized digital record-keeping system. Blockchain has proved helpful in virtually every major market and industry over the past few years.
The digital database records and stores encrypted blocks of data that are then chained together to create a single chronological record of transactions. The database is recorded in individual computers and servers distributed across the world to render the system decentralized.
Blockchain, in summary, is an immutable digital record of transactions that is readily and directly accessible to the public. The sole purpose of blockchain technology is to allow people who do not trust each other to share valuable data in a secure, safe, and tamper-proof manner.
The Application of Cryptocurrencies in the Online Gambling Market
Cryptocurrencies are essentially a creation of the novel blockchain technology. Cryptos are decentralized digital assets pinned on blockchain technology to guarantee security and prevent double-spending.
As cryptocurrencies continue to receive mass adoption across different industries, more and more people are beginning to have faith in them. Many have benefited from the convenience and security that cryptocurrencies provide.
Below are some of the ways in which the $60 billion online gambling market has benefited from blockchain and cryptos.
Enhanced Security and Validity
The online gambling industry is already leveraging blockchain technology to add a layer of data protection. This serves to ensure that punters' personal and financial information does not land in the hand of unauthorized third parties.
With the information stored in a decentralized ledger, it becomes impossible for black hat hackers to access it. This has significantly encouraged more people to sign up with blockchain-powered online casinos and bookmakers.
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Guaranteed Anonymity and Privacy
Data privacy has become a major issue of concern among users in the online gambling space. This is because most websites require users and visitors to share their personal information, often causing some hesitation among users concerned about where and how the operator intends to store the info.
Cryptos offer an opportunity for such sites to eschew data requests because all cryptocurrency transactions are immediately validated by the public blockchain. This goes a long way to protect the users' information, hence more confidence in online sportsbooks and casinos.
Cost-Effective and Instantaneous Transactions
Cryptocurrencies also offer efficiency in the online gambling industry through instantaneous transfers. When a punter funds an online casino account using crypto, they do not have to wait for any bank or third party to verify the transaction.
Once a crypto transfer is done, the blockchain immediately verifies it and notifies the website in question whether the transaction is valid or not.
In addition, cryptocurrencies are more cost-effective than other modes of payment because they do not have hidden transaction fees. Using cryptocurrencies in the online gambling market benefits both the punter and the operator by saving them from the costs associated with traditional forms of payment.
Greater Efficiency and Access
Online casinos and bookmakers that accept crypto tend to offer their punters a streamlined registration procedure because they do not have to collect the user's personal information.
As a result, more and more online gamblers are turning to blockchain-powered sites, neglecting those websites that are yet to embrace the technology. With just an email address and a username, crypto users are able to begin their online gambling experience right away.
The Impact of Non-Fungible Tokens on the Online Gambling Industry
There are already many online casinos that accept crypto payments. The most logical next step will be to broaden the application of blockchain technologies. Non-fungible tokens are gradually finding their footing in the iGaming industry. Let's look at how NFTs are set to change the online gambling industry.
What are Non-Fungible Tokens?
NFTs are typically a unique and non-exchangeable digital representation of ownership that's recorded on a public blockchain ledger.
Non-fungible assets differ greatly from cryptos. While each unit of Bitcoin has the same value as another similar unit of the same crypto, every NFT is unique and reflects the distinctness of its underlying asset.
How NFTs Are Used
NFTs have different uses, from digital art to lottery tickets, written works, in-game items, and more. You can use NTFs to represent the value and ownership of different assets, be they digital or physical.
We already see blockchain technology being used to record ownership changes in assets such as jewelry and precious metals. This is a step towards using non-fungible tokens as proof of ownership.
From proof of ownership of digital assets such as lottery tickets and in-game tools, the use of NFTs in the online gambling space seems to be endless.
Lottery Tickets
Online gambling platforms are already using NFTs to represent lottery tickets where the prizes won are in cryptocurrencies. Though this is yet to become a common practice in the mainstream online gambling arena, it won't take us long to get there.
Another possible application of NFTs in the iGaming industry is in the representation of tickets to sports events and bet slips.
Play-to-Earn
NFTs are gradually proving to be a profitable business for players, developers, and investors alike. As a matter of fact, some of the popular online casino games are already NFTs.
The basic principle of operation of these games is that punters collect, trade, and battle with these digital assets that essentially represent something else other than money.
The Effects of NFTs on iGaming
The truth is that the use of NFTs in iGaming is still a controversial topic, with some operators such as Steam banning the use of blockchain entirely. On the other hand, most operators have embraced the technology in innovative ways.
Either way, there is no doubt that blockchain technology is disruptive to the online gambling industry.
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