Blockchain Technology in Casinos

Blockchain casinos are based on the use of smart contracts to record transfers in blockchain and tokens – the counterpart of chips. When funds are deposited, the cash equivalent is exchanged for tokens. Online establishments can create their own blockchain and tokens or use an off-the-shelf blockchain module.

Only a licensed casino can open bank accounts, buy games and operate legally. This authorisation is issued by gaming regulators and can be withdrawn following casino inspections initiated by player complaints of fraudulent activity. The cooperation of regulators with blockchain developers simplifies the audit, as the regulator becomes aware of all the blockchain casino’s steps in real time.

User protection

Blockchain provides transparency of the gaming process and creates a record of players’ actions in a public registry. Payouts of winnings are transferred to the player’s account via a smart contract with an address in the blockchain. Using the blockchain browser allows the player to track the balance and payout history. A smart contract code check via an auditor is also available.

The honesty and payout percentage of games purchased from providers is confirmed by special regulators making a huge number of bets. For example, at 97% return, a similar percentage is distributed among the participants of the game, and 3% goes to the casino. Recording the bets and their results in blockchain eliminates cheating.

Blockchain casinos are incapable of defrauding affiliate gambling partners by keeping statistics on the customers involved by recording them in a public register. Affiliates generate interest in players by distributing referral links, earning a percentage of deposits made.

Advice on choosing a blockchain casino

Some online casinos deceive users in terms of operating on blockchain by actually accepting deposits in cryptocurrency. There are several important points to pay attention to before registering. In particular, check:

The presence of a link to smart contracts on the website. After navigating to the given address, two points should be examined: the balance and the smart contract code of the game, as well as the balance, payment history and the smart contract code.
License availability. A gambling permit is issued by the regulator. Compliance with this procedure allows an online establishment to run a website and receive games from suppliers. The licence can be found at the bottom of the page or in the legal documentation section. Unlicensed gambling portals run the risk of being blocked, losing bank accounts and coming under the scrutiny of law enforcement.
The level of security of personal data. Casinos may also lose their licenses due to the admission of minors or residents of countries with a ban on gambling activities. Therefore, gambling sites need to request personal data of users.
The ability to open the site via HTTPS and the availability of an SSL certificate.
The clauses of the user agreement and game conditions. Player registration on the portal is possible only if the player accepts the user agreement. Do not be lazy to read carefully this document, it may contain a clause about the casino’s withdrawal of responsibility for the payment of winnings.
Jurisdiction. The law of 14 countries prohibits online casinos, while 17 countries put strict limits. Residents of these countries may face inability to withdraw funds due to blockchain casino failure.
Feedback from real users. Internet gambling establishments often try to raise their ratings by buying positive reviews and reviews on copywriting exchanges. You should pay attention to comments located on independent resources.

Conclusion

Blockchain ensures the integrity of online casinos, giving each player the opportunity to check the site for solvency, winnings percentage, order an audit of the smart contract code. These benefits set blockchain casinos apart from traditional online venues.