Blockchain - An Introduction
Did you realize that certain online gaming companies have been supporting cryptocurrency gambling and payments for years? The payment processing business has always been on the lookout for new and innovative ways to manage payments, especially considering how costly traditional techniques have grown. Crypto is a fantastic answer, but it is still in its inception, and many individuals have only recently learned about it.
A quick introduction to blockchain gambling:
Generally speaking, cryptocurrency gambling and betting can look much like traditional gambling and betting. You, on the other hand, are employing crypto rather than fiat money. When we talk about crypto gambling, we simply mean regular gambling using a cryptocurrency instead of fiat.
The most common way to gamble with crypto is to utilize it as a kind of currency while placing bets or participating in casino games.
As a result of your deposit in crypto, you will receive your winnings in the same form. Some gaming sites even provide their own currencies that can be swapped for other crypto or fiat currencies while you are gambling.
In some traditional casinos, you can only use cryptocurrency to deposit and withdraw, while only wagering in fiat. However, the greatest esports bookmakers and best blockchain gambling sites support wagers in actual crypto.
When it comes to the gambling experience itself, a lot depends on what kind of crypto gambling you’re interested in. Several methods exist for gambling with cryptocurrency, from Metaverse casinos to NFT gambling dApps. While a lot of you might have already played at traditional online casinos that offer crypto payments, we want to help you benefit from decentralized gambling applications, also called blockchain casinos or gambling dApps.
Why Blockchain Gambling?
With the advancements in blockchain technology and how it is transforming the online world as well as many transaction-involving processes, blockchain gambling is an unsurprising natural step. Considering the size of gambling markets around the world and widespread developments in the blockchain field, blockchain gambling was destined to emerge and flourish.
Although blockchain gambling is slowly gaining steam online, many people still remain unaware of blockchain technology and how it powers major cryptocurrencies like Bitcoin. Since it is difficult not to hear about cryptocurrencies nowadays, you will often see casinos accepting them as payment.
However, what are the benefits of casinos that accept cryptocurrencies as payment and operate on blockchain technology? In this section, you will learn the main reasons blockchain gambling is a huge deal today!
Everything You Need to Know about Blockchain Gambling
It’s not always the case that cryptocurrency casinos are decentralized casinos. Only when you start playing at gambling dApps, will you be able to actually benefit from the advantages of blockchain technology.
In case you are new to dApps and need an introduction first, have a look at our dApp guide for beginners.
Gambling dApps are casinos or sports betting providers that are built on distributed ledger technology (DLTs) and therefore offer a lot of benefits compared to traditional casinos.
Gambling dApps come in the form of sportsbook, NFT games, casinos as well as Metaverse casinos.
In gambling dApps…
- payments are enabled by blockchain technology, but alternative options may exist.
- provably fair games allow you to verify the randomness and fairness yourself without relying on third parties
- players sometimes can earn passive income from shared house profits of the casino using NFTs.
- innovation in gambling experience are endless.
Transparency is central in the use of Gambling dApps however, most people fail to acknowledge and realize the major benefit of gambling with on-chain decentralized applications. Did you know that traditional online casinos don’t let punters and gamblers take a peek at the backend processes and how things are working?
Well, that’s the case for many traditional online casinos. Just like those casinos, some blockchain casinos are offering unique gambling products and services however, the main difference between them is that gamblers/punters have the right to view the backend processes when they are engaging in gambling activities through Gambling dApps.
Traditional casinos used a hidden backend process to their advantage and were nearly always off the “Fair play” track. That means traditional online casinos didn’t allow gamblers to learn about how prizes and outcomes of games were distributed, while the house enjoyed a greater house-edge every time.
On the bright side however, things have changed considerably with the development and advancement of Gambling dApps. With decentralized crypto casinos, you can observe all of the backend processes.
Gambling dApps offer transparency so that gamblers and punters know what’s going on at the backend, which allows gamblers to have a better idea of how casino games work and how outcomes are presented. This extends the applicability and prevalence of fair play guidelines among all online casino websites, especially those powered by Ethereum and other established blockchains.
All online activities are somewhat prone to hacking attacks, scams, and other types of threats. Since gambling involves huge global turnovers around the year, the market size keeps expanding as more and more countries begin to legalize online gambling.
With more countries adopt online gambling, cybercrime remains a persistent threat as hackers and scammers find new ways of targeting people.
With the rise of crypto casinos and the use of cryptocurrencies for gambling, hackers and scammers will be honing in on cryptocurrency holders. Hacking attacks and scams are a major threat to the online gambling world.
The use of multi-layered encryption protocols and advanced security measures has enhanced the crypto casino game, enabling players to gamble in online casinos using their cryptocurrency without the threat of losing them. How is that possible?
Well, the world of online crypto casinos has introduced far better procedures and security measures to assist gamblers, and frequently update the security of their decentralized applications .
With added security, complex login procedures, and sophisticated firewall barriers, gamblers can play games with less worry. Since decentralized casinos operate on various blockchain networks, high-end security becomes a perk for every user.
End-to-end encryption and safety from prying eyes or access is a major feature of decentralizing casinos and dappGambl. Singing up and playing with a decentralized casino will better inform you about the security features and reliability that it has to offer.
Many countries around the world do not allow gambling in any form whatsoever. For example, some states and countries restrict access to online gambling websites, land-based casinos, and even small-scale poker games.
The bans and restrictions are usually due to religious beliefs and cultural differences. However, when people who don’t follow the same culture or religious beliefs wish to enter the gambling industry, they are prohibited.
Online casinos require you to provide personal and banking information accurately, so a unique record about you exists on the internet. This clearly takes away anonymity and exposes you to those who are monitoring online gambling activities.
For that reason, some gamblers and punters have ended up facing legal consequences and heavy penalties as a result of engaging in “illegal” activities (i.e., online gambling). However, with the introduction of blockchain technology and various networks that accompany it, gamblers can enjoy a newfound convenience.
Even if you’re in a country or state that has restricted online gambling and crypto use for transactions, you can still get engage in activities like gambling, crypto trading, etc. Some of the most popular decentralized casinos allow gamblers to use VPNs for safer access.
It is possible to access information sites like dappGambl, and decentralized casinos, without exposing your true identity. That’s because blockchain technology operates with complete anonymity, hiding the users’ personal and banking information.
Since the decentralized casinos run on various blockchain networks, all information is end-to-end encrypted, allowing for total anonymity. While it is best not to risk breaking the law in your state or country, the option to gamble and earn rewards using decentralized casinos is available.
Basically, dappGambl and decentralized casinos will not expose you to governmental authorities or banks.
Another major reason most people are opting for blockchain gambling is that they contain all the fun and excitement of traditional land-based and online casinos without the hassle.
Just like traditional land-based and online casinos, you will have tons of games…and even more fun since you will be viewing the processes from the backend.
Blockchain network advancement has resulted in the development of new games and ideas. There are countless varieties of gambling games on the internet. However, the same level of choice is not available at most traditional online casinos.
The diverse variety of games is one of the major reasons why people choose blockchain gambling websites. These include slots, poker games, sports betting, and so on, nearly every type as a typical online casino.
However the quality and engagement rate of blockchain games is far greater. When looking at the blockchain games in decentralized casinos, typical casino games pale in comparison.
To be able to start playing in such blockchain casinos you must be in possession of a crypto wallet and browser extension of the wallet, such as Meta Mask. Of course you also need the accepted crypto in the wallet you are going to connect to the dApp and play with.
Besides that you also need the knowledge of how to stay safe in web3, including how to safely purchase and send crypto. We will talk about this in more detail.
What is the best cryptocurrency for gambling?
You have a few options when it comes to cryptocurrency gambling. It can be difficult to choose the ideal cryptocurrency for gambling. Tokens come in a plethora of forms and really all of them are a great choice, depending on what you are looking for.
Are you entirely new to crypto? Let us show you how to purchase your first cryptocurrency via our web3 wallet and crypto exchange guide.
Certain blockchain casinos only offer gambling with their own token, which you will then need to acquire. So when it comes to choosing the best crypto for gambling, there is not one right answer, as it very much depends on the casinos you want to play in.
However, you still have a plethora of options at your disposal. When it comes to using cryptocurrencies there are some security measures and practices to keep in mind. Since there is no middleman (a bank) you are entirely responsible for keeping your funds safe and secure, which can be a challenge with scammers and hackers looking for their next victim. If you need to know how to keep your crypto safe, no worries – we have got you, have a look at our guide with the best practices to keep your crypto safe.
When it comes to choosing the best blockchain, it again depends on what you are looking for. Keep in mind that Ethereum might not be the current best choice, as the gas fees can be crippling. Although you still have to consider that Ethereum hosts a significant part of all available dApps.
Besides that, we can recommend cheaper and user friendlier blockchains, such as Binance Smart Chain, Polygon, EOS, Tron.
Bitcoin Casinos
The most famous and earliest form of cryptocurrency is Bitcoin. As a result, it’s an excellent choice for cryptocurrency betting. The only true drawback to using bitcoin for betting is the same as using any other cryptocurrency. It’s a double-edged sword, the price volatility. Depending on how quickly the value of a cryptocurrency rises or falls, you may lose or make more money than you bargained for. It’s ideal if you’re using a crypto for betting that you intend to keep in your wallet. You won’t have to worry about price changes if you decide to keep it as an investment for the long run.
Ethereum Casinos
Cryptocurrency gambling goes beyond the simple use of bitcoin. Ethereum is currently the second most popular cryptocurrency. Crypto bettors can gain a lot from using this currency. With its second place in popularity, it is steadier than some of the more recent tokens.
However, using Ethereum to speculate on cryptocurrencies has one major drawback at the moment. Even though it has a wide range of applications and is widely regarded as one of the most well-established and recognized crypto projects, gas fees remain a major disadvantage at the moment. Adding money to your Ethereum betting account or withdrawing it requires you to pay a fee known as a gas cost. Presently, the costs of moving Ethereum around are extremely variable, and you may find yourself shelling out a significant sum merely to do so. Until things settle down, it’s probably prudent to consider other options.
Most sportsbooks accept Bitcoin and Ethereum as payment, but there are a variety of other cryptocurrencies available. Some more options for cryptocurrency gaming include the following:
If you’re going to hold the tokens for a long time, any of these methods and more will work fine for crypto gambling. The best cryptocurrency to bet with is largely a matter of personal opinion among the aforementioned cryptocurrencies.
FAQs
It is generally unsafe to play in unregulated casinos. This is also why you will hardly find them on dappGambl, as we believe that the best choice is always a licensed casino.
However, unlicensed blockchain casinos are less restrictive and the only true option to play anonymously. This is often interesting for players living in countries where online casinos are restricted, as licensed casinos always have to verify the identity of any user to prevent identity fraud, money laundering and ensure a more safe and responsible gaming environment. Moreover blockchain casinos/gambling dApps do not hold your funds and their games are provably fair, so this is a big plus regarding trustworthiness.
If you are looking for a genuinely anonymous blockchain gambling experience, there are still a few reputable websites that seem to be trustworthy and would be an option for you.
Keep in mind that in an unlicensed casino no entity validates fairness.
Blockchain can be used for gambling, and it brings a ton of advantages. Transparency is one of the most important advantages that blockchain gambling may have. Transactions in the gaming industry can now be permanently recorded on the blockchain ledger, rather than taking place in a mysterious black box. In addition, games can be set up to be fair according to rules that can be proven to be correct.
Reviewed and Fact Checked by Vlad Hategan , NFT Gaming Specialist