Freedom of payment
Cryptocurrencies, as a phenomenon, were developed precisely in order to give more freedom to transactions with financial resources. Money transfers using cryptos can be made anonymously from anywhere in the world at any time, regardless of whether it is a holiday or a weekend.
All transactions are available on the blockchain, which makes it possible for any user to check them at any time.
Control and security
In the case of crypto payments, merchants cannot add additional fees to transactions without the permission of the buyer, because it is the users who control the transactions. Personal data remains hidden and is not associated with any transaction that protects users against identity theft.
Low transaction fees
When making a transaction using cryptocurrencies, you can choose whether to pay a fee. If you choose the free option, the transaction completion time is slightly longer. In any case, transactions in many crypto networks are quite low.
Cryptocurrency payments are almost untraceable, making them ideal for users who want to remain undetected online.
Low degree of financial motivation
Although the popularity of cryptocurrencies is growing, they are yet to become a truly mass phenomenon. Currently, it is not always cost-effective for online casinos and bookmakers to add cryptocurrency payment methods to their applications.
Contradictions between security and anonymity requirements
The anonymity of crypto payments is a significant step towards better data protection, but it creates potential problems. The Know Your Customer (KYC) obligation means that online casinos and bookmakers are required to collect certain customer information both to protect them and to prevent fraud. This requirement goes against the anonymity that cryptocurrencies provide.
Gambling is a fairly broad concept. As a rule, gambling means a whole range of activities. The classic examples of gambling are roulette or other traditional table and card games presented in casinos.
Betting is one of the types of gambling associated with bets on the outcome of events, usually sports.
Like any other business, online gambling has its weaknesses. Risks may be associated with many factors, including the non-transparent mechanism for financial transactions. The user in any case finds himself in a situation where it is necessary to trust the gambling operator.
That is why such cooperation is justified only when it comes to licensed operators, whose activities are supervised by state bodies, and a compensation fund is provided in case of unforeseen situations. Blockchain technology and cryptocurrencies can help in solving difficulties and minimize risks.
The main advantage of the blockchain is that many operations are automated. Thus, when a certain configuration, previously designated as a winning one, is achieved, an automatic payment is made. In this case, the operator – the owner of the platform – is not involved in a specific operation. However, even in this case, there is room for fraudulent maneuver. For example, an operator can falsify smart contract data. You can minimize the possibility of such actions by integrating blockchain technology into the online gambling platform.
Blockchain integration with the gambling industry is usually divided into two types: with betting and with gambling per se. The differentiation occurs due to fundamental differences in the principles of operation of the two types of gambling activities: if in a casino a user plays against a casino establishment, then in the case of betting, we are talking about users playing with each other.
The first type is a blockchain casino that offers users classic games such as blackjack, roulette or online slots. All information about transactions made by the user is recorded in the smart contract. These data become the basis for the formation of the payout percentage, as well as the ranking of popular games.
An important element of the system is that the data on transactions and rates of the client is stored without being tied to his personal information. The specificity of the blockchain technology itself is that once the information has been recorded, it cannot be corrected. In other words, all records are irreversible and immutable. Payments are made in the most common cryptocurrencies.
The second type is decentralized online betting platforms. Their users, as well as on traditional sites, have the opportunity to place bets on sports and entertainment events.
The system works in such a way that all bets are processed by a private blockchain, but information from every hundred blocks is made publicly available after hashing. This allows not only to increase the speed of transactions, but also to maintain the transparency of reporting. Funds can be withdrawn in the most popular cryptocurrencies.
All transactions from the moment the funds are deposited are recorded in a smart contract. Funds are transferred to the player's balance automatically. If the player's bet is successful, his winnings are calculated taking into account the previously declared odds. Payouts are also managed through a smart contract.
The Internet has allowed gambling operations to scale to unprecedented levels. However, despite the development of control methods, the risks for users are still relevant.
Blockchain technology allows minimizing them. The innovation makes online betting transactions more transparent, allowing companies to provide irrefutable evidence of good work, and users – to save money due to the lack of commissions.
Cryptocurrencies are still in the process of maturing as many features have yet to be implemented for them to reach their full potential. Many tools are still being developed to make cryptos more secure and accessible.
Numerous questions remain related to the regulation of cryptocurrencies. So far, there is diversity in approaches to regulation in different countries. On the other hand, there is an opinion that there is no need for regulation, since cryptocurrencies were created in order to elude government control. There is also an opinion that regulation will increase the security of users, and that will allow them to be used more as a means of payment.
Since the future of cryptocurrencies is uncertain, their value can change significantly and quickly. Positive news can increase the value of a particular cryptocurrency two or three times in a couple of hours, while negative news can reduce it. Therefore, users should be careful and monitor the situation in order to avoid financial damage.