Online gambling is one of the markets where distributed ledgers is flourishing. Distributed ledgers as used at different stratus of the gambling platforms. In this article I will cover the different areas and how they are shaping the gambling industry.
One of the reasons why distributed ledgers have penetrated this market is due to the fact that crypto currencies are being used as a currency to make deposits and withdrawals. Main advantage for the players are :
- Cryptocurrencies like Monaro and ZCash make transactions untraceable. Making the gambling habits of the user private.
- Lack of KYC. Cryptocurrencies don’t need a third parties like banks, which typically would enforce KYC on the individual before large funds can be transferred in the casino.
- In some countries cryptocurrencies are not recognised as money. Player doesn’t need to be taxes on winnings.
- Close to zero transaction fees. Given that no third parties are involved cost of transferring crypto to and from the casino is close to zero. Depending on the crypto currency to utilise to gamble.
Distributed ledger technology is also being used as the basic platform to build the casino’s. This provides the following advantages.
Smart contracts are now being used as the new approach to build games. Based on their design principle once a smart contract is on the blockchain it cannot be altered.
On completion of the smart contract the user will automatically receive funds into his wallet. Casino cannot block or delay is transfer of funds back to the player.
Accountability. Given that all the transactions recorded on the distributed ledger are immutable the user does not need to trust the casino as the system cannot be tempered with unless the technology behind the distributed ledger is flawed.
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