You’ve probably read it all before – crypto casinos offer fast, anonymous and secure blah blah blah. Yeah, you can use cryptocurrencies to deposit and withdraw at online casinos. They are fast, usually but not always, and they are anonymous – mostly.
Once you’re deposited, though, the casino games basically work the same way as fiat currency games. Yes, you might see BTC or ETH instead of your usual currency. But nothing about the way the game works, on the deeper technical level, is any different.
For casinos and game developers that see the full potential of blockchain casino gaming, though? This is just the beginning of what this technology can do.
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What is a blockchain?
Ok, so let’s back up a bit. A blockchain takes “blocks”, aka individual owners of the currency and their computers, and makes a chain of them. Each transaction of a cryptocurrency has to be confirmed on this shared network, but every node is completely anonymous.
Anonymity, speed, and transparency. No need for a bank to monitor transactions. International payments, with no bureaucracy or tech barons profiting off the top.
The idea was, is, revolutionary.
The first person to successfully create a blockchain in real life was pseudonymous inventor Satoshi Nakamoto. Once this developer created the world’s first blockchain-based currency project – intriguingly titled Bitcoin – they went onto… disappear from the public eye. Forever.
The true identity of the inventor of the blockchain and cryptocurrencies, remains unknown to the public, to this day. A nice origin story, eh?
Back to the known world, though, and (although it took a few years) Bitcoin eventually caught on. There have been many imitators since, but all of them use some version of blockchain technology.
The Crypto Problem
It brings us to the present day. Cryptocurrencies are now fairly commonplace at international online casinos, even if the main global regulators don’t like them.
However, as with every popular trend – the main brand name isn’t always the best, and the true innovators stay ahead of the game. In the gambling world, this means Bitcoin isn’t always the best option.
Since its anonymous developer ducked out without leaving a real plan for the project, Bitcoin has struggled with its massive popularity growth over the years. For a project that was originally all about speed and ease of use, it has become relatively slow to make crypto transactions with Bitcoin. Sometimes up to 10 minutes!
Then there’s also the value of Bitcoin, which can fluctuate a lot – up or down. Yeah, you can make money off of it as an investment, but this can also massively put off casino players, or indeed anyone looking to actually use it as a currency.
New Innovators & Smart Contracts
However – the second most popular cryptocurrency, Ethereum, has its eyes on Bitcoin’s spot as the number one crypto. And there could be some major improvements for crypto casino gaming on the horizon if they have their way.
As well as ETH, other cryptos simply aim for superfast transactions (like Litecoin) or cryptocurrencies that aim to be stable and linked to a traditional currency (like Tether, or USDT).
Both of those are cool innovations that could solve many problems and might easily become the standard at crypto casinos in the future.
But back to Ethereum for our last point. A real future? Who knows, but it sounds cool. So, the ETH team has invented a system called smart contracts. Imagine an online casino, where there were no deposits or withdrawals. Sounds crazy right? Ethereum could make it happen.
Imagine – you simply set yourself a limit of how much you want to play each day, month or year, and then you hop into a game. Each bet is transferred, instantly and in real time, from your wallet to the casino – and then it’s the same for any winnings pinging back to your wallet.
There’s no need to involve anyone but the two accounts, and every transaction is automatically logged securely on the blockchain. Instant, real-time, 100% secure, anonymous online gambling? Sign us up!