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In the last five years, you have probably heard the word “blockchain” millions of times. The technology is truly an innovation that the world has been waiting for. It has brought numerous benefits to both businesses and consumers across various industries.
One of the industries that has successfully implemented blockchain technology, thereby achieving a significantly higher level of security, is the iGaming sector.
It appears that a particular group of people still doesn’t understand the strong impact of blockchain technology on online gambling security. As a result, we have decided to highlight the primary security advantages of blockchain technology that can benefit both gambling platforms and players.
Also, we marked some of the trust deficits of traditional online gambling, which are probably one of the main reasons why gambling sites decided on innovative technological solutions.
Trust Deficits in Traditional Gambling
Let’s make something clear – we do not want to say that non-blockchain gambling sites are unsafe. On the contrary, each one of them had to undergo a testing process conducted by verified and independent regulatory bodies worldwide. However, people have had doubts and questions that resulted in a trust deficit.
Primarily, people always question the randomness of the game because the algorithms that support it lack transparency. Another question people often ask is whether the financial details they share with the casino will remain secure.
Due to the doubts mentioned above, a particular group of people decided not to gamble online. Well, these cons, if we can call them that, are addressed with blockchain technology.
Higher Level of Anonymity
At traditional online casinos, players must share financial details, such as a credit card number, to transfer funds. Alternatively, they may need to share their bank account number to withdraw funds.
All of that would not exist without blockchain technology. The native currency of these websites is crypto. To accomplish the transfer, the first thing you need to do is find the best crypto wallet for gambling. After doing so, all you will need to do is share the crypto wallet address to connect your account with it.
Select the currency you plan to use, and enter the amount you wish to transfer you plan to transfer. With the best crypto wallet, deposits are always instant, while withdrawals typically take only a few minutes (and are often instant as well).
Immutable Records
It may seem contradictory, but blockchain technology simultaneously ensures a high level of anonymity and transparency, serving two distinct purposes. Every transaction made via the blockchain network, including wins, losses, and usual bets, is recorded in a decentralized ledger.
That ledger can’t be altered in any way, which ensures a much higher level of accountability and prevents any eventual fraud that could occur. The player can view all transactions made on the website in real-time. Safe conditions are supported by the opportunity to manage your spending more effectively, which is a win-win for every registered user.
Higher Game Transparency
Traditional online casinos use RNG (Random Number Generator) systems that are certified by regulators; however, players usually cannot independently verify game results. Provably Fair (PF) technology changes this by allowing users to confirm the fairness of each game round independently.
Here’s how it works: before a game starts, the casino generates a hashed server seed, which is a cryptographic fingerprint of the round’s outcome. After the round, players receive the actual server seed and can use a PF calculator to verify that the result matches the original hash.
This process ensures the game wasn’t tampered with and that the outcome was truly random.
By combining transparency with cryptographic integrity, PF systems provide players with greater confidence in the fairness of each bet.
The code mentioned is generated separately for each round, using three different variables:
- Server seed: provided by the casino
- Client seed: supplied by the browser you’re playing on
- Nonce: This variable increases with every round you play, allowing you to track each hand until the end of your session.
Before the game round you chose begins, you’ll receive an encrypted server seed hash. The hash covers the entire game you will play, and no one, including casinos, can change it. Since the code is encrypted, you also can’t use it to reveal the outcome, no matter what.
The only thing you need to determine is whether the hashed server seed you received is the actual hash of the unhashed server seed. After that, the only thing left is to use the so-called PF calculator (which can be found online, although some casinos offer their versions) to generate the SHA-256 hash. If the two hashes are identical, that means you have proved the randomness of the games.
Conclusion
As you can see, blockchain technology has significantly enhanced the overall security of online casinos. Due to the numerous benefits it offers, the mutual trust between casinos and players has continued to improve, and this trend is likely to persist in the future.
