How have cryptocurrencies revolutionized the entertainment industry?

Cryptocurrencies and gambling

With the first cryptocurrency appearing in 2008 and then shattering the barriers in 2017, digital coins have made a massive impact. Right now, everyone knows about cryptocurrencies and they are rapidly entering the digital industries.

The popularization of the Internet had a significant impact on the gambling industry: the profits of casinos and bookmakers grew due to online players. Blockchain technologies are a new word in the gambling business. Many gambling projects have started accepting bets in cryptocurrencies, but in order to unleash the potential of the technology, more is required. Let’s have a closer look at cryptocurrencies and how they are revolutionizing the entertainment industry.

Gambling and betting before blockchain

Gambling is a broad concept that encompasses all types of casino entertainment. A classic example of this concept includes activities, such as roulette, card games, craps, and slot machines of all sorts and colors. In order to ensure the service is safe and secure, gambling websites most often rely on certified gaming systems from third-party developers. Moreover, online casinos partner with experienced, highly recognized software providers to provide the best experience to their customers.

Unlike gambling, betting is called exclusively a bet with money. These can be bets on the outcome of sports and political competitions, less often on special events such as the box office volume of a new film or the weather. The bookmaker itself evaluates the chances of winning a participant in the competition and sets the odds – the ratio of the bet amount to the possible winnings.

With the development of the Internet, bookmakers began publishing odds and accepting bets online, which led to an even greater popularization of betting.

Blockchain in the modern gambling business

Typical online casinos and betting platforms share the same challenges – opacity, geographic restrictions on payments, and the need to trust site owners who can manipulate results or withhold winnings.

The introduction of blockchain payments and betting in cryptocurrencies by crypto bookmakers and casinos are the first and relatively simple way to approach the problems above. If the platform pays out winnings in cryptocurrencies, it doesn’t matter which state borders the payment must go through.

But this does not solve the problem of manipulating the results, the operator can still transfer any data to the smart contract.

Online casinos and betting platforms work in different ways: in a casino, users play against the establishment, on a betting platform – with each other. This affects how blockchain integration works for these types of projects.

All information on transactions, bets, and games of the user is recorded in the smart contract. Based on this data, the ratio of winnings to losses, payout percentage, and ratings of individual games are calculated.

Game statistics and data on bets and player transactions are published on the blockchain without being tied to personal data. All records in the blockchain are irreversible and immutable, therefore, after publication, the data cannot be changed.

Good Security and Transaction Speed

Another revolutionary step in introducing blockchain systems and cryptocurrencies in entertainment is security and speed. When we talk about the former, with traditional money there are always issues and doubts, that your money might be lost, but this is not the case with cryptocurrencies. They are secure and blockchain technology keeps track of all records – it is impossible to forge transactions and at the same time you remain anonymous – your information is not shared with anyone.

As for the transaction speeds, a lot of cryptocurrencies provide access to fast deposits/withdrawals. Actually, when you withdraw money from a bookmaker’s website, it could take time before the transaction is approved by central banks and the process becomes protracted. Cryptocurrencies are extremely fast and convenient to use compared to fiat money. As soon as you initialize the payment, the money is available on your account. It rarely takes more than an hour for the money to appear on your balance.

The Bottom Line

The Internet brought more profit to gambling establishments and bookmakers and opened access to new markets. Players were able to place bets without leaving their homes. On the other hand, among the numerous gambling and betting platforms on the network, there are more scammers and more ways to make unfair earnings.

Blockchain technology is a solution to the problem of trust in online casinos and bookmakers. The player can check the integrity of the casino, and the platform operators can provide mathematically irrefutable proof of good faith. Thanks to cryptocurrency payments through decentralized systems, both players and institutions save on transfer fees and minimize dependence on centralized banking systems and their restrictions.

So far, there are many projects on the market that accept cryptocurrency deposits but use old technologies for playing games and accounting for bets. This is a half-measure that helps in attracting new players but does not provide the most important advantages inherent in projects with full-fledged blockchain integration: protection against fraud and transparency. The future belongs to real blockchain casinos and blockchain bookmakers.