How Do Bitcoin Casinos Work?
Tuesday July 02, 2019,
5 min Read
Secure, decentralized, transparent and immutable - these are the attributes that would make gambling fair and dependable. Any gambler who places his/her best on would like to be ensured that it is just the 'odds' that are the ones influencing the bet and there is nothing else that is odd in there.
The first three words of the article would have also brought up thoughts of Bitcoin and blockchain. In fact, gambling was one of the first territories that saw the potential of blockchain.
The decentralized nature, the needlessness for intermediaries in effecting the transaction, the proof of fair gaming and the tamper-proof transparency that it provides users to check the randomness of results make blockchain a great choice to be paired with gambling and casinos.
Most of the people who use Bitcoin casinos might not always be aware of the technical intricacies involved. Over the last 10 years, so much has improved in both the gambling and Bitcoin space, not only in terms of technology but also in terms of the number of users.
In all of this, it has to be stated that no two Bitcoin casinos work in the same way. According to Statista, The global online gambling market is anticipated to be valued at more than 94 billion U.S. dollars in 2024. The current size of the market is almost 46 billion U.S. dollars, meaning the size is forecast to double in the upcoming years.
The Common Features of Bitcoin Casinos
In spite of the differences, there are a few factors that are common to all Bitcoin casinos.
- Provable fair gambling is one of the most basic features. Most players who use Bitcoin casinos will not compromise on this. In fact, there are only a few casinos that accept bitcoins but do not offer provable fair gambling.
- Blockchain facilitates quick withdrawals.
- Safety and security by ensuring that the funds are held in cold storage beyond the reach of hackers.
Related Read: Why do you need a Bitcoin Casino Solution for your gambling venture?
The Different Types of Bitcoin Casinos
The way in which Bitcoin casinos operate outside the defined territory of common features is what makes each one different. The casinos broadly fall into three categories.
Pure Bitcoin Casinos
Bitcoin casinos can be considered the pioneers in uniting gambling and the crypto world. These brands design their own games which might not be as interactive and fun as a casino is supposed to be. These casinos work completely on blockchain technology and are fully automated and decentralized.
The bet is placed on a certain address and upon winning, the price will be sent automatically to the address that placed the bet. The decentralized nature meant that the casino was not subject to any legal jurisdiction or restricted by geography.
There are no possibilities of getting bonuses and the experience is relatively dull. These types of Bitcoin casinos offers complete transparency on proving the fairness of the gamble.
To counter the disadvantages in a pure Bitcoin casino, hybrid casinos were introduced. Hybrid casinos operate just like any other online casino but they offer a few advantages that are exclusive to a Bitcoin casino, like proving fairness in the gamble and quick withdrawals. They also offer bonuses that were not available in the pure crypto casinos.
However, with these advantages come a few impositions. The hybrid casinos will have to comply with the local laws and should also follow the KYC procedures. They should be licensed and it mandates that the territories that are outside the defined scope scope should not be given access to the casino.
Online Casinos That Accept Bitcoin
Online casinos are nothing more than traditional casinos but might not offer all the advantages of a bitcoin casino. They merely accept Bitcoin as a form of payment. The capacity to prove their gaming is not an essential aspect in casinos that accept bitcoins.
Developing A Bitcoin Casino
It has already been discussed that no two Bitcoin casinos operate the same way. However, with a basic knowledge of the essential features, choosing the right Bitcoin casino that suits your business goals is of vital importance.
There might be some businesses that are ready to pay a price if they need to be protected by the government and would like to operate under a license. There are also businesses that do not want to go through the hassles of licensing and would like to keep the casino simple and confined to the crypto world.
Choosing the right development partner to create your Bitcoin casino is of vital importance. The company needs to have its expertise in both blockchain technology and in the business of gambling. With the right choice of a company to develop your Bitcoin casino, you are all set to win in the gambling industry, be it with or against all the odds.