Blockchain gambling more or less takes place in two ways: on and off-chain.
Off-chain crypto gambling requires the involvement of both physical and online casinos which accept cryptocurrency. Currently, most of these casinos only accept bitcoin as a form of deposit.
In the majority of cases, these casinos will also use a third-party like for instance BitPay, in order to convert bitcoin or another cryptocurrency to the local fiat. There are however, a few online casinos which operate exclusively without fiat denominations and pay out in bitcoin only.
As for on-chain gambling: it occurs on blockchain via smart contracts, which comprise a dApp. The dApp has a backend code running on the blockchain network instead of the traditional centralized servers.
This is why governments have a way easier time tracking blockchain gambling in the off-chain casinos. Since most gambling casinos often issue nation-wide IP banns, authorities have a far easier time limiting access. In the United States for instance, if users attempt to use a bitcoin-accepting game site, they will most likely be IP banned instantly.
This is what a message from an online off-chain casino looks like when an attempt is made to access it via a United States IP address.
When it comes to blockchain and crypto gambling, only a few nations have exclusive regulations on the subject. Online gambling via fiat currencies however, has a huge regulation almost everywhere in the world.
Blockchain gambling is still a relatively new concept
As for blockchain gambling, most countries in the world currently do not consider bitcoin as an official payment method, therefore there is no justification for it to be used in gambling. In the United Kingdom, sports betting has grown into an industry worth 700 million GBP. There are countless websites who accept cryptocurrencies and a dozen more who work exclusively with cryptocurrencies.
While the United Kingdom Gambling Commission allows crypto gambling, it has also warned against untrustworthy service providers.
More and more gamblers worldwide are making use of the benefits provided by crypto gambling. While bitcoin doesn’t offer complete anonymity, it does offer a degree of privacy which is not possible via online fiat gambling.
Users do not submit and personal information when they are conducting a crypto transaction, but a crypto-to-fiat transaction requires a form of verification in most countries due to the know-your-customer (KYC) laws.
You can also check out:
- Coinmine One: Mining Becoming a Part of Everyday Life - Dec 27, 2019
- Blockchain Games: Huge Potential for Drastic Changes - Dec 23, 2019
- Lition: One Very Small Project Shows Big Opportunity - Dec 20, 2019
- Talent Growth System by Coinbase is Already Practiced by Global Giants - Dec 19, 2019
- Double-Spending: Potential Risks and Integrated Solutions - Dec 18, 2019
Know more than others on any Blockchain Party!
Join more than 5000 others to receive the breaking news and weekly summaries! No ICO spam, we promise.