Blockchain technology and cryptocurrencies are beginning to affect a wide variety of financial markets, and online gambling is no exception. As cryptos continue their transformation into legal tender, betting sites are deciding whether or not to adapt to the potential proliferation of digital currencies. Cryptocurrency adoption in gaming could reshape the way online gambling operates, bringing new opportunities and challenges to the industry.

At present, there aren’t many online casino games that accept cryptocurrencies. However, with the number of major companies that accept crypto payments increasing rapidly, the world of online gambling might be very different in the future.

In order to prepare for such an eventuality, let’s go over all the factors that might influence gaming’s adoption of crypto, beginning with a broad overview of what blockchains and cryptos are, followed by the benefits of using them for online games.

What is a blockchain?

Blockchain technology is the platform upon which all cryptocurrencies are built. Essentially, it’s a decentralized network of transactions that all share the same ledger. The ledger is a digital record of every transaction that takes place on the network. Cryptocurrency adoption in gaming leverages this decentralized system, allowing for transparent, secure, and fast transactions within the gaming industry.

Each transaction forms an encrypted ‘block’ on the ‘chain,’ which forms the digital ledger. Additionally, every transaction must be verified by all parties invested in that particular ledger; this means that anyone can view the entire transaction history of a blockchain at any time.

What are cryptocurrencies?

As is the case with all currencies, crypto’s value is determined by the scale of its use. Put simply, when enough people accept a system or form of payment, that ‘currency’ becomes an acceptable item of value.

Crypto coins like Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) use blockchain technology to create a trustworthy financial system. Blockchain’s decentralized network is at the core of this process. Currently, the top five cryptocurrencies have an average market cap of around $300 billion. This serves as clear evidence of the value of crypto.

How do blockchains and crypto relate to gaming?

When it comes to online gambling, supporting the latest tech is critical for any betting site. From live dealer games to new creations like “Slingo,” the gambling industry is quick to apply new ideas.

Timing is crucial. Betting sites are at a crossroads. Will they adopt cryptocurrencies early enough, or will some be left behind as market forces change currencies? Only time will tell which sites survive.

Cryptocurrency has many advantages for early adopters. While cryptos are no longer a new frontier, their benefits are still not fully understood. Below are four aspects of blockchain tech contributing to the growing adoption of cryptocurrencies.

Anonymity

In an age where social media tracks your every move, your purchasing habits, and even the mood you’re in, blockchains provide a welcome level of anonymity. The misconception of assuming we were anonymous online is long gone. Still, it’s good to know that at least one financial system doesn’t need to know census-level information about your personal life before you are allowed to use it.

Convenience

Because blockchain validates every transaction, cryptocurrency transactions are instant and stress-free. The digital, decentralized nature of these transactions removes physical limitations. You don’t have to wait for lengthy interbank payments or forex rates. While transactions do incur costs, the sheer convenience more than compensates for them.

Privacy

As well as affording its users the opportunity to remain anonymous, blockchain technology also ensures that your privacy remains intact while you engage in crypto trades. There are two benefits to this privacy; the first is that payments are processed quicker due to transactions already being verified. The second is that decentralized verification brings a high level of security to each and every crypto coin.

Transparency

Despite briefly touching on it earlier, the benefit of transparency is worthy of a second mention. At any given point in time, the value of a cryptocurrency simply can’t be influenced by a minority stakeholder. Everyone knows the exact time at which each transaction is made. It’s a free market by every definition, which is why cryptos have become so ubiquitous in such a relatively short amount of time.

Conclusion

With the aforementioned benefits in mind, it’s clear that blockchain and cryptocurrency will continue to influence online gambling. Cryptocurrency adoption in gaming will shape the future of this sector.

The only question we have now is, will all the countries of the world accept BTC and other cryptos as legal tender? If the answer to that question is anything like the world’s current view on gambling, the truth of the matter may be far more complex than it seems.