By using cryptocurrencies, crypto casinos, guarantee the use of the blockchain, and therefore, ensure a security that is inherent to their use: with the public ledger, the blockchain records all gaming activity – including payouts, wins and losses – in a transparent and immutable way.
The blockchain technology is encrypted from beginning to end as the databases record transactions and store that information securely, meaning transactions cannot be edited, altered, or manipulated.
There are numerous advantages of playing with cryptocurrencies at online casinos. Besides being a fast, affordable and transparent method, all transactions made will be anonymous.
Data privacy is a concern for gamblers at online gambling, as online casinos usually ask for personal information upon sign up, which can lead to some hesitation in gamblers who worry about how and where their data will be stored. Cryptocurrencies generate an opportunity for casinos to refrain from asking for users’ personal data, as cryptocurrency transfers are immediately validated by the public blockchain.
- Instant transactions
The gambling industry by using blockchain technology and cryptocurrency also benefits from instant transfers. When online gamblers deposit cryptocurrency on a gambling platform, they do not have to wait for a bank to verify the decentralised transactions, as these are currently not controlled by any central authority. Instead, the blockchain immediately verifies the transaction and the casino automatically learns whether it is valid.
The decentralised nature of cryptocurrencies also makes them more profitable than other payment sources such as credit cards or bank transfers. Many cryptocurrencies – including Bitcoin – have no hidden transaction fees. Using this payment method benefits both the user and the casino, which avoids unnecessary costs associated with traditional payment methods.
In addition to this, blockchain technology also makes it impossible for a payment made by the player not to be received by the casino (it is important to always make sure that the key for that wallet is filled correctly), and the other way around.