Online gambling is a popular entertainment all over the world (especially due to COVID-19), but most sites do not seem to be trustworthy. For example, it is impossible to check the data on the solvency of an online casino, view statistics, or track whether the winnings have reached the winner. But, fortunately, cryptocurrencies can solve all of that. Thanks to the features of the crypto market, any user can check the balance of the gambling platform, find out the rules of the gambling protocol, see if referral programs are working and whether winners have received their reward or not. In this article we’ll discuss how the crypto gambling market works, what advantages crypto casinos offer and how they differ from usual online platforms.
How does crypto-gambling market work?
Cryptocurrency gambling platforms are quite similar to the traditional ones except for the few differences:
- bets can be made in cryptocurrencies (there are two main types of crypto gambling platforms: some work only with cryptocurrencies, while others accept bets in both cryptocurrencies and fiat);
- transactions can be verified;
- smart contracts are responsible for paying winnings;
Most online casinos and gambling dApps operate on the Ethereum, TRON and EOS blockchains. The last two are more popular as they have lower fees and faster transactions. Crypto-casinos accept different assets, the most
In addition to the two types of blockchain gambling platforms, there are two different types of developers on the market:
- Game developers. They create gambling games on the blockchain, which crypto-casinos and other blockchain platforms can integrate into their services. For this, developers receive a percentage of each bet.
- Developers of blockchain platforms and website engines. They ensure that gambling sites on the blockchain are good to go. Crypto casinos can create a blockchain module from scratch, but most of them often use ready-made solutions.
The developers of blockchain platforms play an important role in what the crypto gambling sector looks like. Let's consider the role of these participants in the crypto-gambling market using the example of TruePlay developer. It provides key solutions for gambling businesses on the Ethereum blockchain. The company is also releasing a module called TrueSign to keep track of all transactions and stakes in blockchain casinos. The reliability of the TruePlay smart contract was confirmed by the Hacken?io
Why is blockchain a good idea for gambling platforms?
Crypto gambling platforms have many advantages over traditional ones. The main problem of online gambling sites is that they are difficult to verify. Is it an honest resource? Does it have enough money to pay out winnings? Also, users have no guarantees they will receive their winnings. Moreover, for many players, a huge disadvantage of regular online casinos is the need to register and verify.
Pros of crypto gambling
Let’s see what pros crypto gambling has to offer.
Blockchain makes gambling transparent. All actions of players and crypto casinos are recorded in a public registry: any user can check them, and the casino cannot make any changes.
Access to casino balance data. Crypto casinos work through smart contracts that automatically transfer winnings to the winner's wallet. Any user can check the address of this smart contract and make sure that the site has enough funds for payments.
Verification of the casino algorithm. Crypto casinos use only certified software that has passed an independent audit. For example, in a fair algorithm, the probability of getting heads or tails will be 50 to 50. One way to determine the fairness of an algorithm is to check the payoff distribution.
Automatic delivery of winnings. Payouts based on a smart contract are automatic, and the casino cannot block them.
Simple registration process. Most crypto casinos do not require any data from the user other than an email address.
Cons of crypto gambling
Of course crypto gambling has some cons. The most important one is that it can become an addiction – so be careful! Never forget about your safety. And don’t invest more than you can afford to lose.
Plus, it’s a very risky thing, it’s impossible to predict who would be the winner. With gambling you can simply lose a lot of money. And don’t forget about volatility of cryptocurrencies – this factor also plays its part in losing big amounts.
Also, crypto casinos don’t have any legal basis, no one regulates them and that is a risk too.
Is crypto gambling really popular?
The first crypto casinos appeared in 2013. But the explosive growth of the sector did not happen then. Interest in crypto gambling has skyrocketed in 2020 and 2021 amid yet another cryptocurrency bull market. According to SoftSwiss, crypto gambling traffic in 2020 has tripled compared to the previous year. And the sum of bets in digital coins in Q1 2022 more than doubled compared to the same period last year. More precisely, it has grown by 116,7%.
The Google search for ‘crypto casino’ is quite popular, especially in Russia. As we can see from all this data, crypto gambling attracts a lot of attention. However, be responsible and don't gamble with more than you can afford to lose.
Gambling, even the one that uses crypto, is a very risky thing, and you should not have great hopes to be a winner. There are many other, more reliable ways to make money. Recently we wrote an article about one of them
You can always turn to SimpleSwap services to buy and exchange crypto – it doesn’t cause addiction and is very easy to use!
SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.
