Blockchain is one of the most fascinating and game-changing technology developments of this century. Essentially it is a system – a kind of digital financial ledger – that keeps a record of transactions.
However, only people using computers that are linked through a peer-to-peer network can see the blockchain and it cannot be altered by a third party. That makes it tremendously secure and resistant to cyber-crime such as fraud.
Many industries are beginning to integrate blockchain technology for just that reason and among them is the casino gaming sector. Blockchain is primarily used for transactions that involve cryptocurrencies and that is where the intersection with casinos and slot games is happening.
Read on to learn more about the relationship between blockchain and slots.
What is Blockchain Tech?
Blockchain is a ‘chain’ of data recording financial transactions made using crypto coins such as Bitcoin. It is entirely decentralized, as the data is stored across multiple encrypted systems on a network and it cannot be tampered with in any way.
That presents benefits in terms of cyber-security that should be obvious even to those who are not tech experts. Indeed, it is one of the primary arguments that is made in favor of cryptocurrencies over traditional currencies.
The Relationship between Blockchain and Slots
The relationship between blockchain and slots lies largely in specialist crypto casinos right now. These are sites where the deposits that are necessary to play the many exciting slots online can only be made using crypto coins. The casinos largely lie outside of the established online casino market and are not subject to the same licensing and regulation as them.
Some of those mainstream casinos are beginning to add cryptocurrencies to their deposit and withdrawal options now though. That means they must integrate with blockchain technology to make that possible and there are obvious advantages to casino sites in doing so.
Aside from the fact that the blockchains are fraud-proof due to being impossible to alter, crypto transactions have other security benefits. For one thing, they do not require slot players to submit any financial or personal information to the casino site, relieving it of the responsibility for storing that information securely.
Only a few of the bigger casino sites are currently integrated with blockchain technology and open to crypto transactions, but that is very likely to change in years to come. The main reason it is not happening right now is concerns over the lack of crypto market regulation, but that may also change as it grows bigger.
The Future of Blockchain and Slots
It is impossible to provide a one hundred percent accurate prediction of the future, but a more widespread adoption of blockchain and crypto for playing slot games does seem likely. Casino sites are forced to invest a lot of money in data security at the moment and the potential that blockchain has to reduce that burden is one that they cannot ignore forever.
There are other reasons why they should be seriously considering it too, including the need to stay abreast of tech developments. Industries that exist entirely within the digital space are always at risk of becoming obsolete if they do not, so if crypto does not fade away, casino sites will have to embrace it.
But what would blockchain slots really mean and what are the benefits and drawbacks of them?
Benefits
The single biggest benefit of blockchain tech for slot players and casinos is how secure it is. All bets made on a game and any winnings earned and withdrawn would be stored on the blockchain ledger and no one could change them. Furthermore, deposits and withdrawals made using crypto coins can be completed without any bank data being required, meaning there is no risk of data or identity theft.
A second advantage is how rapid the transaction processing is. Withdrawals using standard currencies can take up to a week to process, whereas crypto ones are completed in minutes – sometimes even seconds.
Drawbacks
There are potential problems with blockchain slots too though. Perhaps the biggest is the fact that cryptocurrencies are incredibly volatile, going up and down in value almost constantly. That could leave the winnings earned on a slot game worth almost nothing by the time they have been withdrawn from the casino account.
Another possible drawback is the lack of regulation and transparency within the crypto world. What that could mean in practice is that should an error occur during a transaction involving crypto, there is no one to report the problem to. Unless the casino site itself is willing to refund any missing money, the customer will have few other options for recourse.
Blockchain technology is influencing the slots world now through crypto casinos but there remain definite question marks alongside the obvious benefits.