Anyone who has looked into the world of cryptocurrencies at some point will have no doubt encountered the blockchain. This is a key part of understanding how crypto works, and it is a development that could offer a lot to affiliates and other parts of the iGaming world.
What is the blockchain?
The blockchain was originally developed to be used with bitcoin, one of the first decentralised cryptocurrencies to be created. Since then, we have seen this technology be adapted to be used with other emerging cryptocurrencies too.
This is the ledger on which all transactions with crypto are recorded. It is made up of individual blocks which record the details of each transactions. Part of the data of each one is then stored in the block above it on the chain.
This is a big part of what makes blockchain so safe and secure – it is impossible to edit a block without also editing the one before it. This then means you would have to edit the one before that, and so on. We simply don’t have the resources to be able to do this, and so it makes this technology safe and accurate.
How is the gambling industry using blockchain?
Another big benefit of using the blockchain is the anonymity that can come with it. This is a big plus for many gamblers as it means that they do not have to pass over their personal details to casinos – eliminating the chance that this data might be stolen during a cybersecurity attack.
However, this can also offer its own issues, since casinos might be unable to properly fulfil their KYC and anti-money laundering checks.
One area where blockchain could be used successfully is in the recording of winners. It is not always clear how some casinos pick and choose their winners, and some players want to avoid playing at these types of sites. By making use of this technology, sites will be able to transparently display their transactions, hopefully boosting their trustworthiness among players.
One big hurdle that blockchain needs to be able to cross before it is put into use in many different places is that of regulation. Many countries have fully restricted cryptocurrencies and the technology they use, so even if they allow online gambling, this is not a viable option for casinos operating there to pursue.
On top of this, they have to make sure that any tech they do use is compliant with other jurisdictions they might be operating in. One casino might be focused on the Finnish markets but if they carry a license from the UK Gambling Commission, they also need to make sure that every tool they use is compliant with the British regulations.
At this point, it is easiest to say that blockchain has a lot of potential. Cryptocurrencies and the tech surrounding them should be something affiliates consider, and it might not be too long before we see this type of tech becoming a lot more mainstream.