The iGaming industry seems to be ever-changing with all sorts of new trends. However, a decentralized casino system isn’t just a trend but a possible new way to build better trust between the customer and the house. Just like when blockchain changed the way we view currency it could also change our playstyle in online casinos.
What Are Decentralized Casinos?
Decentralized casinos are just like any regular online casino, except their entire operations run on the blockchain technology. Instead of one central server where data is stored in one place, the data is dispersed into multiple networks of computers that are open-sourced and extremely transparent.
Gambling decentralized applications (dApps) are extremely beneficial for both the casino and the house. They allow for much faster transactions and lower the cost of operation since the casino doesn’t need to pay for a server.
By lowering the cost, the site can afford to lower the casino house edge and give iGamers a much better experience. Besides better playing odds the blockchain allows players to stay completely anonymous and safe. All this potential already improves the gambling industry as a whole.
Decentralized vs Centralized
In our current day, almost everything runs on a centralized financial system (CeFi). Almost everything that involves money has been centralized including all the casinos you’ve most likely played on until now.
However, the problem with a centralized system is that all power is with a single entity/group. This makes the CeFi system extremely vulnerable to corruption or intentional/ unintentional mismanagement.
The blockchain has no such tendencies as the managing authority is dispersed and every transaction has to be verified from multiple sources. This makes any manipulation of funds immutable.
Problems Traditional Casinos Face
Another big factor of online casinos is the mistrust of users. If you were to look under even the most reputable casino’s reviews, you would find countless cheating and mismanagement accusations.
The odds of casino games are an extremely important factor for every player. However, you as a player can only put your faith in a casino and pray they’re a genuine business. The only thing that the player can control is to check for a valid regulation license or provably fair algorithms. But all these certifications were made by someone completely else and if who knows how genuine they are.
For example, even the most respected gambling commission operator Malta Gaming Authority (MGA) has suspended countless licenses from casinos just after a few years. This means you could be gambling in a fraudulent casino that has yet to be proven guilty.
Provably Fair Vs Blockchain
While the provably fair algorithm is well respected in the gambling community, players themselves can’t exactly look inside their game and see if it’s in place correctly. This is why blockchain games are much more superior as their whole system is open-sourced.
Literally, anyone can look inside the game and see that the game is truly random. This would forever shut any cheating accusations that a player might have. Moreover, having immutable transactions would also make any cheating/hacking impossible from the player’s side. Nobody has the authority to tamper with anything including the casino’s employees.
Benefits Of Decentralized Casinos
Things like Ethereum smart contracts offer security and transparency that are very much desirable to a business. However, it is important to note that decentralized casinos also improve your betting sessions tremendously. The ability for a casino to lower their cost operations plays the main part as it helps to cut corners in otherwise necessary areas.
- Lower house edge
- Open-sourced nature
- Withdrawal transaction speed
- Possibility to avoid taxes
- Casino specific coins
Are Decentralized Casinos Worth It?
Gambling decentralized applications are still a young concept. There are still only a handful of games on the market and even fewer that could compete with old-time classics from already established game developers.
However, the open-sourced nature of the blockchain is alone worth it in the iGaming genre. Once the technology gets more advanced and more dApp games released, decentralized casinos might just take over the regular ones faster than expected.