You’ve probably read it all before – cryptocurrency casinos offer fast, anonymous and secure blah blah blah. Yes, you can use cryptocurrencies to deposit and withdraw at online casinos. They are fast, usually, but not always, and they are anonymous – mostly.
But once you make a deposit, casino games basically work the same way as fiat currency games. Yes, you might see BTC or ETH instead of your regular currency. But nothing about the way the game works, on a deeper technical level, is different.
For casinos and game developers who see the full potential of blockchain casino games, though? This is just the beginning of what this technology can do.
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What is blockchain?
Ok, so let’s back up a bit. Blockchain takes “blocks,” aka individual currency owners and their computers, and makes them into a chain. Every cryptocurrency transaction must be confirmed on this shared network, but each node is completely anonymous.
Anonymity, speed and transparency. No need for a bank to monitor transactions. International payments, without bureaucracy and technology barons profiting from the top.
The idea was, is, revolutionary
- The first person to successfully create blockchain in real life was the pseudonymous inventor Satoshi Nakamoto. After this creator created the world’s first blockchain-based currency project – the intriguingly named Bitcoin – he moved on to…. disappear from the public eye. Forever.
- The true identity of the inventor of blockchain and cryptocurrencies, to this day, remains unknown to the public. Not a bad origin story, eh?
- But back to the known world, and (although it took a few years) Bitcoin finally caught on. Since then, many imitators have sprung up, but they all use some version of blockchain technology.
The problem with cryptocurrencies
This brings us to today. Cryptocurrencies are now quite common in international online casinos, even if the major global regulators don’t like them.
However, as with any popular trend – the major brand is not always the best, and the real innovators are ahead of the game. In the gambling world, this means that Bitcoin is not always the best option.
Ever since its anonymous developer slipped up without leaving a real plan for the project, Bitcoin has struggled with a huge surge in popularity over the years. For a project that was originally all about speed and ease of use, it has become relatively slow to make cryptocurrency transactions using Bitcoin. Sometimes up to 10 minutes!
Then there is the value of Bitcoin, which can fluctuate a lot – up or down. Yes, you can make money on it as an investment, but this can also greatly discourage casino players and even anyone who wants to actually use it as a currency.
New innovators and smart contracts
However – the second most popular cryptocurrency, Ethereum, has its eyes on Bitcoin’s place as the number one cryptocurrency. And there could be some serious improvements for cryptocurrency casino games on the horizon if they have their way.
Like ETH, other cryptocurrencies simply aim for super-fast transactions (like Litecoin) or cryptocurrencies that aim to be stable and tied to traditional currency (like Tether, or USDT).
Both are cool innovations that can solve a lot of problems and could easily become the standard for cryptocurrency casinos in the future.
But back to Ethereum for our last point. The real future? Who knows, but it sounds cool. So, the ETH team has come up with a system called smart contracts. Imagine an online casino where there were no deposits or withdrawals. Sounds crazy, right? Ethereum can make it happen.
Imagine – you simply set yourself a limit on how much you want to play each day, month or year, and then jump into the game. Every bet is transferred, instantly and in real time, from your wallet to the casino – and then the same for any winnings ping back to your wallet.
There’s no need to involve anyone but your two accounts, and every transaction is automatically recorded securely on the blockchain. Instant, real-time, 100% secure, anonymous online gambling? Sign us up!