Blockchain technology is slowly making progress, and it is gradually becoming present in every technology. Starting in 2018, a new type of online casino emerged: blockchain casino. This type of technology comes in the gambling world at the right time. The online gambling community is facing privacy issues lately, meaning that players are upset with the fact that the winning results, payouts and such kind of data are hidden or partly hidden from them. Blockchain casinos have the potential of saving the situation and even more so, improving it. This type of online casino is trending this year as well, and it seems like a good investment for anyone interested in opening an online blockchain casino.
The good news though, is that you can create your blockchain casino start-up and it doesn’t require a lot of time or a big budget. In this article, we are going to guide you through the whole blockchain casino concept starting from explaining how blockchain technology works, how to open a blockchain casino and ultimately we will present its advantages compared to regular online casinos.
For the first time in internet history, users can transfer data privately to each other. Blockchain technology is actually behind the cryptocurrency craze, and it will become the backbone of many other important industries in the near future, for example, blockchain casinos. In the blockchain, a public database stores the digital information, and the web looks like the name suggests, a chain of blocks. From this perspective, our blocks are the actual data; one block can stock around 1 MB of information divides into three pieces. The first piece of information stores transactions data, like the time, date, or amount of money.
The second block registers information about the people participating in the transfer. Not to worry, blockchain doesn’t use any personal information. The users receive something called “digital signature,” which acts as a username. The third and final block in the chain is the one holding information about blocks themselves. Blockchain technology uses a code-named hash that allows us to tell the difference between blocks.
To make this easier, we are going to take as an example, a simple online shoe purchase. The first block tells you when you bought the shoes and how much did they cost. The second one identifies you as the buyer, along with the place you purchased the shoes from. Let’s say that you saw something else on that shoe website and you want to buy that as well.
The third block is the one telling the difference between your two purchases even though they hold the same information, and that is because every block has its own hash. Continuing with the same example, we are going to explain how blockchain actually works. As a wannabe blockchain casino owner, you need to remember this information and then take it to a larger scale transaction wise. The good thing about blockchain technology is that its philosophy never changes and its advantages will not alter.
How does blockchain work
For a block to store new data, it needs something to save. Therefore the blockchain process starts when a transaction occurs. Afterward, your purchase gets verified by a network of thousands of computers spread around the whole world, taking less than a few seconds. This action means that this network confirms your shoe purchase and if the information matches, it validates it. After validation, the three pieces of information we talked about earlier, are stored under one block with your digital signature on it and its own code. This storage action is the green light for the block to become part of the chain, and for you that you got yourself a new pair of shoes.
Your information is available for everyone in the blockchain, but no one can connect to the actual computer network. The connection is not possible because of the copies every computer creates in the blockchain, meaning that if a hacker wants to break in, it has to go through every single information and reproduction of information in the chain. To sum it up, blockchain technology is very smart yet simple, keeping some data available to the public but doing it in a safe environment. With this said, blockchain casinos seem like an excellent idea so far because of the safety issues and the easy to manage platform required.
Blockchain casinos use blockchain technology, meaning they don’t require a host or a central control board, and it is typically safer than other online casinos. Besides, the information is available to the public, so this is probably the most appropriate online gambling option of all times. From an entrepreneur’s point of view, blockchain casinos are also cheaper than traditional online casinos because they don’t require additional transaction verification or other tools like this.
In blockchain casinos, everything related to money transfers and transactions falls on the data stocking blocks, and it is more reliable because it uses cryptocurrency. With digital currency involved, players get more payment options because they can transfer money to any bank in any currency and other types of online casinos do not offer them this option. When gambling in a blockchain casino, you don’t need to worry about the tracing of your money. Blockchain casinos keep anonymity when handling cryptocurrency transactions, this being a feature that online casinos do not poses.
Benefits of Blockchain Casinos
Anyone interested in opening a blockchain casino knows at least the basics of blockchain technology and cryptocurrency. To highlight blockchain casinos, we are going to run a comparison between them and regular online casinos.
Blockchain ensures transparency
We all know the saying “the house always wins,” and sometimes this leads to scams. Online gamblers have proven fraud cases before coming from the online casino houses, and right now, the lack of transparency keeps users away. Blockchain casinos are all about openness and availability to their clients. Owners don’t need to worry about trust issues or scam presumptions coming from their customers.
As much as the gambling world develops, the frauds related to gambling grow too. Online casino frauds make headlines nowadays because of the amount of money stolen but also because of their techniques. Hackers can easily hack into the casinos’ servers or defraud operators when making transactions. Blockchain casinos run on a distributed ledger, so it is impossible to hack or manipulate the system. When a player wins at a blockchain casino, the casino calculates and transfers the winnings into his account immediately. Therefore, blockchain casinos provide secure ways of money transactions and keep their players safe.
We are going to approach this subject from a business point of view. In regular casinos, players have limited payment options. Besides, because real money is involved, there is a need for deposits or withdrawal fees and so on. In bitcoin casino, none of these issues exist because of the cryptocurrency use, meaning fewer costs for managers. Digital currency doesn’t depend on any bank or payment service; therefore, it doesn’t need to respect law regulations which is another big plus in countries like the United States, where the government makes efforts to stop the online gambling industry expansion.
As we already stated, blockchain casinos don’t trace transactions. In traditional online casinos, users need to submit for a lot of information and even documents to open an account. This process takes some and more than often. It is annoying for gamblers and they tend to look for other gaming platforms. As a business owner, you want everyone to reach you, especially in the beginning. Blockchain casinos operate faster and don’t require personal information, leaving players to enjoy their gaming experience without any worries or concerns.
While regular online casinos are frowned upon by regional officials, blockchain casinos don’t fall into that category. These casinos use cryptocurrency, making it available from everywhere in the world if you have a good internet connection. Also, in traditional online casinos, the withdrawal of the winnings can take up to 3-4 days sometimes and makes players exposed to frauds. Blockchain casinos transfer money right away in a safe environment, filling the needs of both the players and the owners.
House Edge Costs
House Edge Costs refer to the percentage of money taken from players by online casino houses to ensure their profit and to keep their business going. Blockchain casinos are cutting down a lot on this house edge cost because they don’t require a lot of employees, transaction costs, taxes or merchant services. Blockchain gambling sites are backed up by a computer network; this means that as an owner, you will gain profit in a fair way without talking extra payments or taxes from your customers.
Blockchain casinos allow you to become a member of the platform. Blockchain technology provides a secure decentralized structure that lets anyone become an active part of the business. As a player, you can fund the casino and get a percent of the business profit in return, kind of like a shareholder. On the same page, blockchain casinos can develop their tokens for their gaming platforms, and wannabe shareholders must acquire an amount of those digital coins. Therefore, blockchain offers a lot of liberty for entrepreneurs, and also, it allows them to develop their business as time passes. With a little creativity and the right skills, your blockchain casino can easily reach the top of online gambling platforms.
Opening a blockchain casino 101
Many ways allow you to open a blockchain casino business, and it depends on how much you know about blockchain technology and what is your investment capital. Even if you want to open the casino independently, or you want professional to do it for you, there are a few key points that you always have to go through. Analyzing the blockchain market and coming up with a business plan, registering and obtaining a license, getting a site development plan, purchasing the blockchain online casino software and selecting the games you want to have on the platform are the main things to do. After checking these tasks off your list, you can finally launch your blockchain casino website and promote it.
White label blockchain casino
This works by the white label method, you buy the actual domain and brand it yourself. This option saves time because the product is pre-established, so it has a license, games, and a payment system included. The manager needs to check the software features and if a trustworthy company develops it. All is left to do in this situation is designing the website and creating a player-friendly interface. The disadvantages behind this type of blockchain casino are the monthly fees and that the software already integrates into the casino platform so basically the buyer depends on the seller in this case.
If you are eager to start your new blockchain casino business, then this is the deal for you. Turnkey casino websites come with everything included from a license, site, and layout to slot games, and so on. Your future customers expect high-quality products and an efficient platform, so when choosing this option, make sure you have the right contractor. Research any reviews or other information about your provider to make sure that your future blockchain casino is going to be a hit.
Presumably, the online gambling industry will make around 100$ dollars per year soon. With new gaming trends emerging every year and with updates and developments that we never expected from online casinos, it is sure to say that everything is possible. Blockchain casinos are among those unexpected turns of the gambling world because they are total game-changers. These platforms use cryptocurrency, and this is one of the first new characteristics in an online casino. This feature comes in handy to speed up the payment process, to enforce the security and protect players from frauds and scams. It is a known fact that online casinos are a primary target for hackers because most casinos are using cheap software that has little to no firewall protection.
Besides, online gambling sites are the victims’ of final law regulations. In the United States, the license fees for an online casino are so high that most entrepreneurs give up. But with blockchain casinos, you don’t need to worry about the government and what it says, and you can ensure top quality services and gaming experiences at substantially lowered costs compared to traditional online casinos.
Blockchain casinos are still under the development and are still considered a new thing in this industry. They emerged two years ago, and as predictors say, there is no stopping them in the following years. As technology advances, blockchain casinos will advance too and will gradually include other updates and features to their platforms. In the same time, this type of online casino will raise more and more awareness on the business market.
What does it offer?
Blockchain casinos offer many benefits for entrepreneurs that choose to venture in this industry. The initial investment is not that big, and if the purchased online casino software is reliable and comes from a top producer, the owner looks at huge profits. Also, if you are a tech enthusiast, you can start a blockchain casino business from scratch. The concept behind blockchain is rather simple and easy to understand so all there s left to do so is to throw in original branding and design to the platform. It is safe to say that blockchain casinos are the next big thing in the online gambling world, so anyone interested in this area should shoot their shot right now, no matter if you want to manage a platform like this or just enjoy what it has to offer.
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