Cryptocurrencies are digital or virtual currencies that use cryptography for secure transactions and control the creation of new units. Today, crypto is transforming the very understanding of money and financial transactions, becoming the most convenient means to participate in online gambling.
The role of cryptocurrencies in online gambling
Cryptocurrencies have captured widespread attention due to their potential to radically transform the financial system, freeing it from centralized control by governments and banks. A unique opportunity has emerged for conducting transactions without intermediaries, with the transparency and security of operations guaranteed by blockchain technology.
Beyond the financial sphere, cryptocurrencies open doors to innovation in technology. Thanks to the underlying blockchain, various applications are possible, ranging from modernizing management systems to creating decentralized applications (DApps) and smart contracts.
Understanding blockchain technology fundamentals
Blockchain is a decentralized database consisting of blocks of information that are linked together in a chain (hence the name “block chain“). Each block contains a set of transactions, and all blocks are invariably linked to each other through hashes (identifiers).
One of the key features of blockchain is its decentralization – there is no single governing body for the blockchain. The entire network of participants maintains the integrity of the blockchain by reaching consensus on changes and verifying transactions.
The evolution of cryptocurrencies in bitcoin casinos
The concepts of cryptography in financial systems have ancient roots. Even in ancient times, there were attempts to create secure digital forms of payment or encoded messages tracked only by the recipient or sender.
Cryptography back then, of course, is far from what we observe today. However, one can find some elements or methods that could be considered prototypes of present-day financial cryptography.
For instance, the use of encryption to protect commercial secrets and other confidential messages existed even before our era.
One of the well-known examples is the Caesar cipher, used in Ancient Rome to encrypt messages of military significance. The encryption method was based on shifting letters of the alphabet by a certain number of positions.
Bitcoin’s influence in the iGaming industry
The inception of cryptocurrencies as we know them today began with the emergence of Bitcoin (BTC) in 2009. Despite the fact that the creator of Bitcoin remains anonymous under the pseudonym Satoshi Nakamoto, this digital currency took on the role of digital gold, a perception that continues to this day.
Bitcoin became the first fully decentralized cryptocurrency, utilizing blockchain technology. Its creation and release marked a new era in financial, technological, and gaming spheres.
The advent of BTC gave impetus to the rapid development of the iGaming industry. Crypto casinos offering Bitcoin gaming sprang up like mushrooms after the rain. Players quickly appreciated the convenience of using BTC, leaving their bank cards behind.
However, the popularity of Bitcoin didn’t escape the notice of crypto enthusiasts worldwide. Other alternatives, known as altcoins (alternative cryptocurrencies), started emerging. Each of them represents a unique combination of technologies and features.
The impact of Ethereum and alternative cryptocurrencies in gambling
Ethereum – the second most popular cryptocurrency, holds significance both in the world at large and in the realm of crypto casinos. It serves as a platform for creating smart contracts and decentralized applications (DApps). Tokens based on the ERC-20 standard can be launched on this platform.
There are numerous other cryptocurrencies offering diverse functions and capabilities. Among them are Litecoin, Ripple, TRON, Monero, and many others, each with its unique features and applications.
Particularly noteworthy are the so-called “stablecoins” – cryptocurrencies tied to stable assets such as fiat currencies (USD, Euro), metals, securities, and others. They are designed to minimize the volatility inherent in most cryptocurrencies by pegging them to stable assets.
Exploring cryptocurrencies, tokens, and coins in online casinos
Digital assets in blockchain technology can take various forms:
- Cryptocurrencies. These are digital currencies created as a means of exchange and storing value. Examples include Bitcoin (BTC), Ethereum (ETH). They are used as alternatives to fiat currencies.
- Tokens. These are digital assets built on blockchain, representing certain assets or services. They function similarly to securities but in the digital realm. For instance, ERC-20 tokens on the Ethereum network, such as Chainlink (LINK) or Uniswap (UNI).
- Coins. The term is often used interchangeably with cryptocurrencies but can also refer to digital coins specific to a particular blockchain network or project. Examples include Ether (ETH) for the Ethereum network, Binance Coin (BNB) for Binance Smart Chain.
The key difference among them lies in their functionality, purpose, and utilization within the blockchain ecosystem.
A guide to token standards in cryptocurrency
Every blockchain has its own standard for tokens. The diversity among blockchains also reflects differences in accessibility and core functionalities. Let’s briefly go through some of the most popular standards:
ERC-20. A creation of the Ethereum platform, this standard stands out for its ability to support smart contracts based on these token standards. It enables the issuance of tokens and the creation of decentralized applications.
TRC-20. The standard within the TRON ecosystem also provides tools for creating decentralized applications and tokens, offering high performance and low fees.
BEP-20. Tokens can be issued on the Binance Smart Chain with functions like transfer, storage, exchange, and usage within smart contracts on this network.
New blockchain networks actively introduce innovations. For instance, enhanced versions of ERC standards (such as ERC-721 for non-fungible tokens) lay the groundwork for the development of digital assets.
All these variations are actively utilized in the online gaming industry.
Cryptocurrencies play a significant role in iGaming, especially for citizens in countries where gambling is prohibited. For example, in many Asian countries, any transactions involving gambling sites might raise suspicions with banks and subsequently with governing authorities.
Steps to acquire cryptocurrency for iGaming purposes
To acquire cryptocurrency for gaming, you can use cryptocurrency exchanges or online platforms. The process of purchasing cryptocurrency on popular exchanges typically follows these steps:
- Sign Up. Create an account on your chosen cryptocurrency exchange or platform.
- Verification. Complete the verification process by providing the necessary documents in line with the platform’s requirements.
- Fund Your Account. Use available payment methods such as bank cards or other cryptocurrencies to deposit funds into your exchange account.
- Purchase. Navigate to the “Buy Cryptocurrency” section, select your desired cryptocurrency, specify the amount, and finalize the transaction.
However, dealing with cryptocurrency exchanges requires some familiarity with the platform and time for verification. Also, note that some exchanges may restrict access to citizens from specific countries.
Recommended exchanges for iGaming cryptocurrency purchases
Dealing with online exchanges is much simpler. Many online services of this kind don’t require client verification, and often, registration isn’t even necessary. Purchasing cryptocurrency for depositing into an online casino can be done within 5 minutes:
Specify what you’re buying and what you’re offering State the amount for the purchase Provide the cryptocurrency wallet address for the transfer Send the money to the provided details Receive the cryptocurrency
There’s a wide range of exchange options for buying crypto. It’s essential to consider reviews, stability in operation, and the offered buying/selling rates. Here are some exchanges we trust:
- SOVA. Ranked on monitoring lists. No registration or verification needed. Buy cryptocurrency in 2 minutes.
- ExHub. No registration required. Works 24/7 automatically. Engages with DEX. Regular cash prize giveaways.
- SWOP. Favorable cryptocurrency rates. Extensive selection. Prompt order processing. Responsive customer support.
While you can use our recommended online platforms to buy cryptocurrency, you’ll need to transfer the purchased crypto somewhere. For this, you’ll need your own electronic wallet.
Types of cryptocurrency wallets for storage
Cryptocurrency wallets can be broadly categorized into two types: “hot” and “cold”. Depending on the type, they have their own features and varying levels of security.
- “Hot” wallet:
- Connected to the internet and accessible only online.
- Usually used for frequent cryptocurrency transactions, such as trading on exchanges.
- Convenient for quick access to assets but less secure due to its internet connectivity.
Examples include wallets on cryptocurrency exchanges, browser or software wallets like Metamask, TronLink, Trust Wallet, and more.
- “Cold” wallet:
- Stores cryptocurrency offline, typically on a physical storage device (such as a USB drive or paper).
- Used for long-term cryptocurrency storage and considered more secure as it’s not connected to the internet (thus protected from online threats).
- However, it may be less convenient for quick access to funds.
Noteworthy brands include Ledger and Trezor.
However, even they do not guarantee 100% security since sometimes even a “cold” wallet needs to be connected to the network, making it “hot” during those instances.
In the next article, we examined in detail the TOP 4 crypto wallets in which you can store the necessary types of cryptocurrencies.
Navigating regulation and predicting cryptocurrencies’ future in iGaming
Legislation regarding cryptocurrencies, much like gambling, varies from country to country. Some have established clear regulatory acts, recognizing cryptocurrencies as legitimate means of exchange, while others continue to develop their approaches to regulation. In this aspect, the situations of cryptocurrencies and iGaming align.
Certain countries impose bans or restrictions on the use of cryptocurrencies due to concerns regarding money laundering and terrorist financing. It’s crucial to consider your residency and the laws that govern the online casino you engage with.
Future outlook of cryptocurrencies in the gambling industry
The prospects here depend on multiple factors, including recognition from regulators, technological innovations, widespread adoption, and changes in the global economy.
Some experts believe that cryptocurrencies will inevitably gain recognition and become officially integrated not only within the online gaming industry but also within the financial systems of countries and blocs. However, others provide less optimistic forecasts.
Much will hinge on the level of trust in this digital asset and the trends in the global economy.
Why cryptocurrencies are the optimal choice for iGaming
Despite their innovation and potential benefits, cryptocurrencies continue to be a subject of debate and risk. Their future relies on widespread acceptance, regulation, and technological advancements that can address existing limitations. However, today, cryptocurrencies stand as the most convenient and secure asset within the online gaming industry.
It’s evident that cryptocurrencies will continue to evolve, and their impact on the iGaming industry will grow. At the same time, thoughtful management and a balanced approach are required from the gambling community and regulators.
The goal is to offer players more potential and less risk, and efforts are underway to achieve this.
