While gambling is one of the most lucrative industries in the world, with a yearly turnover of $50 billion, there are still many issues that need a solution. Blockchain is a new technology that can help remedy some of these problems.
We will be taking a look at how blockchain can improve the integrity of gambling platforms and how this technology has already been implemented.
Explaining Blockchain Through Dice
A great use case of blockchain in gambling can be exemplified through a game of dice. When rolling a dice, the chance of rolling on each side is 1/6. With most online casinos, each dice roll is generated by a pseudo-random number generator, and the player has to trust the casino for the results.
But using to record the rolls of the dice, the player can check the results of the past rolls and see if the results have been altered. The same use case can be applied to roulette or lottery.
Lotteries and Slot Machines
Lotteries can use blockchain to create a smart contract in which the shared pool of funds is won by the users that guessed the last digits of the hash of the next block.
Applying blockchain in slots is on the same principle as with dice, but there is also the advantage of anonymous and secure payouts.
Slots machines use the Random Number Generator (RNG). Random.org can generate random casino results, and the platform is connected through the Oraclize service, a centralized oracle that facilitates communication between decentralized applications on the blockchain and non-blockchain services.
The bet funds are sent to the smart contract wallet of the casino, and then the smart contract sends a request to Oraclize. Oraclize gets the number from Random.org and delivers it to a smart contract, prompting the contract to reward the player with that same number.
Advantages:
- The Ethereum blockchain has a high rate of transaction confirmations;
- It takes 1-2 minutes for the information to be sent and confirmed through Oraclize.
Disadvantages:
- The time for Random.org to generate a number.
Gambling regulations vary from country to country, and in some cases, if you have your bank tied to your gambling account, you may have to explain the origin of the money or even get into legal trouble.
But using cryptocurrency to gamble, there is no paper trail to your bank account, and thus you do not have to explain to any official authorities from where you got the money.
Event Betting
Betting on events has the same principle as slot machines because it uses an oracle that connects to a data source. There are many blockchain platforms that allow players to bet on a scheduled event like football matches or election results.
Augur, for example, is a blockchain platform where bettors can create markets and trade the stocks of an event. The market is created on a future event in which you input the possible outcomes, and those who want to join the bet will have to buy shares of this event and receive a certain percentage if they are correct.
After the event occurs, you will need to record its outcome to distribute the reward. For this, the REP token is used.
The Current State of the Decentralized Gambling Market
DappRadar posted on June 26th, 2020, that the 5 largest gambling applications had a daily trading volume of around $7 million. The first 5 applications are based on EOS, while the next 3 are Tron-based, and the last 2 run on Ethereum. More than half of the total number of transactions on the EOS and Tron blockchains consist of gambling-related transactions.
Gambling is one of the most popular entertainments of today, and there are many casinos with a wide variety of games and sports events that users can choose. But how can the player be sure that the casino offers both transparency and anonymity? The best way to do it is to choose the sportsbook that guarantees confidentiality and an individual approach to every customer who wishes to retain his privacy while betting or gambling, such as 1xBit.
The 1xBit online crypto casino is fully anonymous and transparent, as it uses only cryptocurrency as payment and does not record any personal data or bank accounts. When registering for an account, all the user has to do is click to generate a random user number and password, and he now has a multi-currency account ready to be used.
With more than 5000 slots from 100 game providers and live games with over 200 live dealers, 1xBit has more than enough options that will surely suit all types of preferences. Players can fund their accounts or withdraw quickly with more than 20 cryptocurrency options, such as Bitcoin and Ethereum.
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Join 1xBit and take advantage of the many benefits of cryptocurrency while gambling and betting on events and games.
