In the world of finance, you will find two concepts commonly interchangeably called “blockchain and gambling.” However, the two are worlds apart. Gaming is very simply a game that involves winning cash or prizes; in most cases, the winners are determined by random numbers. Blockchains, on the other hand, are networks of computers running across the Internet, collectively storing and transferring all sorts of information. Basically, it’s more of an online protocol for conducting business, but it has been applied to many different industries, including online gambling.
The main attraction for online gamblers is that there are no geographical restrictions, because any computer can access the internet and participate in the gambling. A player doesn’t have to go out of his or her house and gamble in a casino, because it’s all happening over the internet. As a result, there is no age limit or other restrictions. On the other hand, because there is such widespread use of the Internet, there are some laws regarding online gambling, and the main ones center on the transfer and distribution of money across state lines.
Since there are no physical locations where gambling takes place, players can be located anywhere in the world at any given moment. This opens up new avenues for gamblers, as they can choose a site anywhere in the world, provided that it is legal. Because gambling happens online, the infrastructure supporting the games is mostly free and available for use everywhere. Add to this the fact that most online gambling sites are operated offshore, and you end up with a unique set of circumstances.
When you combine all of the above factors, it becomes clear why blockchains can be a significant improvement to online gambling. Because gambling sites are operated offshore, and players can be located anywhere in the world, there is a lack of regulation in the sector. This creates a unique situation where no entity is in total control of the outcome of the games.
Because of this lack of oversight, gambling sites can and have been used by online criminals. For instance, in recent years several high profile cybercrimes have been committed by hackers associated with online gambling sites. However, because no entities are in charge of the games, no actions are taken by the community to halt these criminals or put them behind bars. While some may consider this an endorsement of anarchy, it is important to note that withoutblockchain technology, cyber criminals could easily take advantage of this absence of law and cause real harm to the gaming industry. Therefore, incorporating blockchains into any online casino can be seen as a way to prevent this sort of damage.
By adding a system like the Raid Protocol to online casinos, the industry will be able to provide a better service to its players. Because of this, players will be able to protect their funds by providing a decentralized means of securing their transactions. The Raid Protocol is able to do this by creating a second, or “Raid” layer on top of the existing Raid Layer of the network. This second Raid layer acts just as effectively as the original Raid layer but operates in the background and is invisible to the players. Players do not see the difference, therefore they do not need to worry about outsiders taking their money.
In addition to protecting against external threats, the existence of the Raid layer would also give online casinos a way to improve the privacy of the players’ transactions. When there is only one Raid layer, it would be very easy for an attacker to track down all of the players in a single network and cause havoc. But when there is two Raid layers, each one is able to filter out data that doesn’t belong to it, leaving the player’s data totally safe.
The bottom line is that casinos should be using blockchains if they want to take advantage of the new opportunity afforded to them by the emergent online gambling industry. However, it would still be best to implement the use of this technology before allowing gambling sites to open up. There are too many issues that need to be ironed out before gambling sites can fully utilize blockchains. And even after those issues have been ironed out, players need to be made comfortable with the idea that their privacy is protected. Only then will they happily play at online casinos using blockchains.