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Gambling on the blockchain

The article considers the blockchain system in gambling as well as the prospects for its further development in the online casino industry. Examples of using blockchain technology in modern slots and slot machines are given in the article, as well as advantages and disadvantages of this system.

Gambling on the blockchain: how to check the honesty of online games

At the moment, the gambling industry is one of the most profitable areas of business, since its annual turnover is about $ 50 billion. However, there are still a number of shortcomings in this area that the blockchain can fix. The article describes in detail how the blockchain system is used in modern gambling, as well as how this technology can be used to determine the integrity of a particular platform.

Application of blockchain technology in online casinos

In modern online gambling establishments there are the following types of games:

  • Slot machine;
  • Lotteries;
  • Roulette;
  • Card game;
  • Dice;
  • Betting (bets on events).

Not so long ago, some sites began to actively use the blockchain system, which was previously only present in the cryptocurrency market, in online gambling. With its help, we managed to eliminate a number of shortcomings in the work of online casinos: therefore, most developers of such sites talk about the further development of this system in business. The advantages of using blockchain can be seen in the example of cryptocurrency: all financial transactions are carried out without the control of the security services of financial institutions, which means that the risk of blocking the account is reduced and such transfers will not cause suspicion.

The use of blockchain for payments in online casinos is a great option to make all financial transactions as transparent as possible for the user, which means that you will no longer need to doubt the integrity of a particular platform. All funds won will be transferred to the user’s account, and not to another location.

Also, the blockchain system allows you to make transactions between different geographical points when moving cryptocurrencies – for a traditional payment system, borders between countries play an important role in making transfers. If the blockchain is used in the activities of online casinos, then there will be no need to charge additional commissions – the user will be clearly aware of the interest that is charged during the transfer, which means that there will be no additional questions.

Another additional advantage will be the use of smart contacts when performing financial transactions. This will allow you to improve the functions of the online casino. The entire mechanism and algorithm of work will become as transparent as possible, and users of the resource will have access to all conditions.

In addition, the last moment can increase the loyalty of users and their trust in the online casino system: after all, this is the problem that all developers of such platforms are currently struggling with. It is difficult to trust mechanisms that work on remote servers and are subordinate to strangers. There are also some unscrupulous sites that can manipulate the results of the game, and the user can not check their honesty at the expense of any tool.

The blockchain system and technology allows you to increase the level of trust among users in online casinos, and this, in turn, will lead to the development and growth of the industry and the number of its users. At the same time, the main tools for implementing this idea are already available today (we are talking about smart contacts, cryptocurrency, DAO, etc.)-it remains only to adapt their functions to the needs of the gambling business.

How blockchain works in practice

To see how the system affects the conduct of online games, you can consider its work on the example of gambling in dice. This game is based on a six-sided cube, the sides of which are respectively numbered from 1 to 6. Thus, the chance of each side falling out is 16.6%. When playing in an online casino, the roll is determined using a random number system, so the user has a chance to throw a maximum value of 16.6% of the total number of throws. 

In most online platforms, the player must simply trust the system that the rolls will not be twisted and they will have a real chance of winning. The blockchain system allows you to eliminate blind trust in the developer and check whether this system is being followed. To do this, just pay attention to the sequence of such numbers falling out – from the history it will become clear how honestly the casino plays. The same test can be performed for any other game: roulette, lottery, etc.

The use of the blockchain in lotteries and slot machines

At the moment, the practice of online casinos already uses the blockchain system in the organization of lotteries. For example, there is a variant of such a fun game where all players create a common pool using smart contacts, and then they need to guess the last numbers in the hash of the Ethereum block.

Blockchain is used in slot machines in much the same way as in the dice game under consideration. In addition, the player gets additional advantages: anonymity and safe withdrawal of winnings. In order to understand exactly how slots work on the blockchain system, you need to pay attention to the very structure of such a casino.

The algorithm of slot machines is based on the casino scheme-Oracle-random number generator. Most often, the service is used as a program for generating random numbers Random.org – it is directly connected to the Oraclize server, which is a link between applications on the blockchain with third-party services. Interaction with the system is as follows:

  • The player sets the bet amount on the smart contact wallet in the online casino;
  • The smart contact system sends information to the Oraclize service;
  • The service, in turn, receives a response from the system random.org and sends it back to the smart contact;
  • The latter pays the winnings to the user.

During the process, there are 4 requests for the Ethereum blockchain. Two requests are required to move the ETH cryptocurrency, and the other two are required to generate random numbers. In total, these requests take about 1-1. 5 minutes.

A number of advantages and disadvantages can be distinguished from the operation of this system. The advantages are that the Ethereum blockchain system has a high transaction speed, which is so important for the operation of gambling applications. This is also a small interval for exchanging information with Oraclize. The only drawback that users note is the large amount of time it takes to transmit the response from the random number generator itself.

In addition, most states have imposed a number of restrictions on gambling activities: if the Bank notices that a transaction related to the online casino activity has taken place on the account, it may arise: the account may be blocked or it will be necessary to explain the receipt of funds to the account. Cryptocurrency and the blockchain system are a great way to protect yourself from problems with financial institutions.

Blockchain-based betting system

Betting is one of the most popular areas on online platforms. This type of game is suitable for fans of sports events, following which you can earn extra money. The principle of the system is similar to that used by slot machines: the betting platform is an Oracle – a source of information. Now there are a large number of resources on the Internet that offer to test your strength and put money on an interesting sporting event. However, not everyone knows that there is a system that allows you to bet with another person on the outcome.

The Augur platform has recently been developed for such needs. It allows you to create markets, as well as trade event stocks. There are no restrictions on which event the participant chooses. For example, you can argue with a user about the number of people who will live in colonies on Mars by 2050. Participants create a market, choose possible answers, and launch the game. In the future, other participants can freely join this dispute if they buy shares of the event from the organizer. If the user has organized this bet, they receive a percentage of each purchase.

As soon as the event happens, you will need to record its outcome and distribute the winnings among all participants. The REP token will help you here. Once an event has occurred, the user has 27 days to notify all participants of the results. After that, the organizer gets back the REP tokens and payment, if their guess coincides with the opinion of the users who won.

In some cases, the results and outcome of events can be reported by a specific person: the organizer has the right to delegate these responsibilities to him within 3 days. The remaining participants also have three additional days to challenge the results.

What does the decentralized games market look like at the moment?

At the moment, according to statistics agencies, the turnover of the 5 largest online casinos is about $ 7 million. At the same time, the top ten in the ranking of the most profitable online platforms are occupied by 5 EOS products, 3 – Tron and 2 – Ethereum. At the moment, if you calculate statistics on transactions on gaming platforms, more than half are made through blockchains.

Gambling is rapidly developing in the modern world, despite the restrictions that are constantly imposed by the governments of individual countries. This line of business is one of the most profitable, but at the same time this direction is subject to fraudulent attacks, which cause many users to distrust such systems.

Blockchain technology should eliminate this moment of danger that is present in modern online casinos: this technology will expand the customer base of such establishments, increase the level of trust and create a transparent payment system.