With the Bitcoin boom in late 2017 and early 2018, the internet and traditional media outlets were filled with stories of how its underlying blockchain technology could be used to revolutionise many industries. Blockchain revolutionises multiple industries, promising to transform sectors from finance to gaming through its decentralised approach.

The Decentralised Revolution

Blockchain technology promises to bring decentralised control to many different areas of life. The first and most prevalent of these methods are cryptocurrencies. Their decentralised ledger of transactions means that there can be increased levels of trust in the banking industry by making it possible for people to scrutinise and verify payments and receipts made on the network.

Even traditional banks like Barclays have got in on this action, investing in a blockchain payment startup called Crowdz.

Outside of banking, it is claimed that messaging services, voting, internet domain name systems (DNS), the security of critical infrastructure, advertising, data storage, and even ride sharing could be decentralised and revolutionised by blockchain technology.

Smart Contracts

The concept behind most of these promises is called a “smart contract”. This system facilitates contractual agreements between two or more parties. It also enforces the terms and verifies that they have been honoured.

Since it is only a method for defining, agreeing, enforcing, and verifying contracts, it can be applied to almost anything. Blockchain revolutionises multiple industries. That is why crypto pundits list many sectors that could adopt this technology.

What About iGaming?

The iGaming industry quickly develops its product offerings. For example, it was fast to adopt smartphone technology. Most major online casinos released mobile apps for both iOS and Android in the late 2000s and early 2010s. In recent years, top iGaming brands have focused on virtual reality games. They are using VR technology that has matured over the last decade.

More evidence of this product development and augmentation can be seen in the way that each casino differentiates its games from its competitors; most do this by offering unique variations of traditional games. For example, alongside the traditional version of the game, there are themed versions of blackjack like Deal or No Deal Blackjack, where players must consider the Banker’s offer which they receive between each drawing of cards.

However, the iGaming industry has been slow to adopt blockchain technology. A few smaller online casinos have started accepting cryptocurrencies. Still, players will struggle to find a major online casino that directly accepts Bitcoin or other coins. Some casinos accept payments indirectly through providers like CoinBase. These providers do not hold the cryptocurrencies themselves, so they are not exposed to market fluctuation risks.

Smart Contracts in iGaming

Perhaps iGaming’s most pertinent use for blockchain technology would be smart contracts. These would allow an increased level of trust to be created between the casino and the customers as the transactions would be held on a publicly visible ledger.

This would ensure that the casino owners are honouring any agreed odds and paying the correct winnings to customers, and the public would be able to monitor transactions.

owever, this may not be necessary, since many established markets have regulators that fulfil this role already. Online review sites like TrustPilot, social media sites like Facebook and Twitter, and the free market also hold online casinos to account at present.

Peer to Peer Gaming

Some blockchain pundits are also suggesting that the technology could be used to let players create their own games for others to play. This would not just decentralise the online casinos transactions, but would also crowdsource the creation of the product itself.

While likely a long way off, this concept could see a move away from traditional casino games like poker, roulette, slots, and blackjack and add creative alternatives, similar to the way the indie games industry has evolved in recent years.

As of yet though, neither smart contracts or peer to peer gaming exist outside of niche or concept online casinos.

In Conclusion

While blockchain technology promises much for the iGaming industry and the wider economy, little has materialised so far. Some of these promises may take a long time to mature because the technology needs refining. It is also possible that market realities will prevent them from becoming mainstream. Additionally, it is unclear whether there is a genuine need for what blockchain offers.

For now, the most likely way blockchain will enter the iGaming industry is through more online casinos accepting cryptocurrencies as payment methods. Blockchain revolutionises multiple industries, but in iGaming, adoption is still early and mainly limited to payment solutions. Like most online retailers, casinos will likely accept payments through providers who convert cryptocurrency into fiat currency.