Online Gambling Is Gaining Popularity, But Without Blockchain Tech The Players Are At Risk

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As a crypto investor with a background in the traditional gambling industry, I’m excited about the growing trend of online betting platforms and the role that blockchain technology is playing in making these platforms more trustworthy and secure. The appeal of games of chance has always been strong, but the convenience and accessibility of online platforms have made them even more popular.

There’s a persistent allure to games of chance and the prospect of striking it rich. While brick-and-mortar casinos remain an option, the real surge of gambling thrill lies in the digital realm. Following the US federal legalization of sports betting in 2018, numerous online sportsbooks, lotteries, and casinos have emerged, bringing fresh innovations and timeless favorites to the table. State regulations continue to shape the industry, but this is a significant stride towards acknowledging online betting platforms as a whole. Globally, this trend has been mirrored with increasing approval of regulated digital platforms for lotteries, sports betting, and classic casino games. The US market is projected to experience the most significant growth, with an estimated $24 billion online gambling industry by 2024.

As a crypto investor with an interest in the burgeoning digital asset sector that is cryptocurrency gaming, I’m intrigued by the expanding industry landscape. Three primary domains are currently capturing the limelight among enthusiasts. Based on data from a September 2021 survey, sports betting and lotteries account for approximately 32% and 31% of this market share respectively. Traditional casino table games and card offerings, as well as slots, represent other popular gaming categories. The beauty of these activities lies in their adaptability to an online format, enabling players from around the world to engage, provided legal frameworks permit it.

Online gaming’s surge in popularity, encompassing sports betting, lotteries, and casino games, brings excitement to countless fans. However, this development comes with a significant drawback: the lack of trust associated with online casinos compared to their physical counterparts. While going to a physical casino may be inconvenient or costly, there is a certain level of assurance that it is regulated for fairness. In contrast, online gaming requires a higher degree of trust in the platform, especially when it comes to ensuring security and transparency.

Decentralization

When it comes to choosing an online gaming platform, the initial hurdle for players is determining its credibility. To assess a platform’s trustworthiness, consider the following methods:

Transparency

As a crypto investor and enthusiast of decentralized finance, I can’t help but be drawn to the transparency that comes hand in hand with this new paradigm. The beauty of on-chain transactions is that they allow anyone to peer under the hood and verify the authenticity of each transaction. While identities may remain hidden, the critical data points such as game outcomes, payouts, and losses are all openly displayed. This level of transparency acts as a powerful deterrent against fraudulent activities, making robust decentralized betting platforms all the more trustworthy. The innovation here is so groundbreaking that traditional physical casinos simply cannot keep up with the degree of transparency that their digital counterparts can offer through on-chain transactions.

Immutability

Blockchain’s unique feature of immutability ensures that the integrity of original data remains unaltered. In simpler terms, once data is recorded on a blockchain, it cannot be altered or manipulated in any way. This design aspect is crucial in online gambling as it prevents any potential attempts to cheat players by tampering with past transactions or results. The immutability of blockchain provides an essential layer of security and trust for all involved parties.

Random Number Generation

Perhaps one of the most important, yet least appreciated, elements of online gambling is the generation of random numbers.  This seemingly simple task may be performed well enough by rolling a die, shuffling a card deck, or launching a ball around a roulette table, but for online betting (as well as any electronic games within a physical casino), this is the element that could most easily be manipulated to favor the house and cheat players out of their money.  The creation of a genuinely random number is surprisingly difficult using software because everything is made up of calculations.  Thanks to blockchain, we can see a random number generated and if the platform is truly transparent, they can show how these numbers are generated.  However, without proper methods this remains one of the most fundamental risks of online betting.  However, this is also an opportunity for platforms able to solve the problem.  Using some of the same decentralization principles, a tool called Pyth Entropy uses a unique peer to peer system where each party generates a random number, then places the hash of the number (a type of encryption) onto the blockchain.  The two parties reveal their numbers, verify that the hash matches the on chain hash, which guarantees that neither party changed their number.  These two numbers are then hashed again, which creates the actual random number.  All of this is done automatically and quickly, but in a way that all parties can see that the number is truly random.  The technology is already being used by developers from Arbitrum, Blast, Chiliz Chain, Fantom, LightLink, Optimism, and more to ensure that all types of platforms can use true random number generation.

Wrapping Up

The popularity of online gambling, including sports betting, lotteries, and casino games, is on the rise and is expected to expand further worldwide. By utilizing the characteristics of decentralization, transparency, immutability, and random number generation offered through blockchain technology, players can ensure a secure experience and fair games.

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2024-05-08 12:24