The one and only blockchain; we have made it. Another new crypto casino term being shoved your way when you already have an entire glossy of terms to memorize. In the world of crypto casinos, it is rather important to keep note of this one. To put it in simple terms, the blockchain is the engine running the entire operation. All of your bets, balances, and withdrawals are all managed by the blockchain. Now, you can relax knowing it was not done by a single intern accompanied with a single spreadsheet and a dream.
Essentially, it is a catalogue. Everyone can see it, but no one outright owns it. Every transaction (can include deposits, bets, payouts, etc) will get neatly recorded into their own special block. Those blocks will then be chained together. It should all start to make a little sense. Well, at least the origin of the name.
Now, here is the real question: why does this even matter for crypto casinos? When it comes to a traditional online casino, you have to put your trust in their software. That means you are praying for the casino’s servers and database as a whole to behave. Most of the time, they do! Unfortunately, “most” is not the same as “all.” There is a reason these support teams exist. Blockchain, on the other hand, wants nothing to do with that responsibility. Rather than having you place your blind trust in them, the blockchain will require you to instead verify. The only person you can point fingers to is yourself.
So, let's not let that happen!
Crypto casinos will use a blockchain to process payments. Any sort of deposit or withdrawals will happen on-chain, meaning you can see it with your very eyes. Provably fair systems use a random generator to showcase that the results were not manipulated during gameplay. That generator is run by the blockchain.
That being said, the blockchain itself has a plethora of attributes. There are good sides to it, but that also means there will be some disadvantages. This guide will walk you through how a blockchain truly operates. By the end, it will be as easy to remember as the back of your hand; what is actually going on, why does it matter, and is the hype deserved?
Understanding Blockchain
If there is one thing you must understand, it is how blockchain is not a magical casino dealer. A tech dealer is more its style. There is not a thing in this crypto casino realm that can manipulate the blockchain. While this may sound, and maybe even a bit “too good to be true,” we should dive deeper into understanding all the blockchain stands for before throwing ourselves into the wolves.
As we have previously skimmed over, the blockchain records all payouts, withdrawals, and transactions permanently. Traditional online databases are more comparable to your average bank. Think of it like there are a bunch of notebooks stacked up in their own personal vault, and owned by a single individual. In comparison to a blockchain, it is structured more like a Google Doc that is shared with thousands of other people. This is the heart of blockchain, as it is known for decentralization.
Now, for the drama: once a block is added to the chain, it can never be changed. Unless everyone is okay with every last block that follows it being changed too. Do you know how long that would take? For one, it is almost impossible. Only someone that owned the majority of computing power could even pull that off. Despite all these daunting “what-ifs,” blockchain has exceptional benefits for the crypto casino architecture.
Transparency: You can view every transaction and game outcome. There is no need to trust the casino; you can verify it now!
Security: There is no server for hackers to get their greedy hands on. Have fun typing to compromise thousands of nodes across the globe.
Provably Fair Gaming: Your best friend when it comes to crypto casinos! Blockchain casinos allow players to independently verify that the results were not tampered with mid-play. All gameplay decisions are put into place before you even click “Bet.”
Quicker Transactions! These “middle-man” structures do not exist in this realm. That means these transactions are going to clear rather quickly (depending on the network… it can fluctuate).
Blockchain is not perfect. It was not designed to be–but is it safe, fast, efficient? It absolutely is. Users are still encouraged to be reserved, despite so many positive features. This is exceptionally important for private keys. If you are not wanting to lose your crypto, like all the spare change unknowingly wedged under those couch cushions, then hold them near and dear. None of this is meant to sway you from the blockchain. The reason we can trust these crypto casinos is because of the blockchain. They present us with plenty of trust, transparency, and truth. Not to mention, they are licensed! That is always a green flag.
To summarize, the blockchain operates as the public record book that refuses to be corrupted. You do not need to have a degree in computer science to understand it. Every transaction written on a blockchain will be featured on their public scoreboard. At least now, nobody can cheat!
Why Blockchain Exists
Blockchain did not materialize overnight. It was not made because someone figured everyone wanted more math in their gambling, either. Who would? It was made because the internet is not necessarily known for being the most trustworthy place on the planet. There are plenty of negative reports; double charges, accounts being randomly frozen, and even predatory clauses that are hidden in plain sight.
Trust kept failing, so the blockchain stepped up to stop it. Users have always been expected to put their trust in their banks, casinos, as well as payment processors. Now, everything has been flipped around. The introduction of blockchain in these systems has made these issues to be less likely to be experienced. The blockchain respectfully does not care if you trust them. Every decision made by you must be verified by you. All those transactions are made public, and all the rules are enforced–you can look for yourself! There is not simply one person that oversees all control.
Historically, these online casinos can get rather fragile to say it nicely. You must trust the casino–but, why? Well, it is simple. It is because they said so! The online casinos will claim how their games are not rigged, the balances are presented accurately, or how the rules they carefully worded explain everything you will need. Yes, regulated casinos do behave. There is nothing outright wrong about taking the classical approach. However, if you are someone that is rather unsure if you are wanting to put your trust into everything, then crypto casinos might be your path.
With the blockchain put into place, you do not have to trust them! Another appealing reason for its overall existence is the lack of permission it needs. Within more traditionally-structured casinos, someone is always going to say no to something. More often than not, this is without any helpful explanation towards your situation. Say your payment processor has an industry blocked, or your country is restricting all gameplay access. Blockchain will not ask permission for these approvals.
If you have a wallet, an ID, and internet access–welcome aboard!
This is important for crypto casinos. Now, players with limited banking access due to being in a restricted region can deposit, play, and withdraw. It certainly is nice to avoid credit card companies from sticking their nose into every last thing you do.
Put one person in charge of everything and notice how easily everything can come crashing down.
How Blockchain Fits Into Crypto Casino Architecture
Think of a crypto casino as the human body. Where does blockchain fit in here? Technically, it will be the casino’s nervous system. It is not always going to be visible, but if it suddenly fails? Oh, nothing else matters now. Blockchain was put into place to ensure all operations are performing their respective tasks accordingly.
Most crypto casinos are going to have the same format. You will see the flashy games they offer, live dealing, and most of all: that big button that says Deposit that is just daring you to come press it. Blockchain does not replace any of these functions. It will power what happens after you start pressing buttons.
The moment any sort of crypto is deposited, the blockchain will insert itself. Money does not get sent to your local bank or any other payment processors. The funds go from your personal wallet, and then transferred to a special blockchain address. Once the blockchain has it, this is all public and can be verified. Why it may sound uncomfortable, this is nothing to worry about. Now, your deposit cannot be copied or undone. None of these excuses like, “Oh no, we accidentally lost it!” This cannot happen without every single block on the blockchain to be altered.
Now, how do we manage our balance? In traditional casinos, the balances are stored within a private database. Whereas, crypto casinos balances are sitting comfortably on-chain. Blockchain does not worry about any of those vague messages on how long your withdrawal or transaction are going to take. Nor is there any sort of a mysterious, unexplainable delay by the system. Blockchain gets straight to the point; its objective may be to work with games, but it certainly will not play any with you.
Are the games still fair with blockchain put into place? The short answer is absolutely–this is where the blockchain shines! As you may have now heard once or twice (or fifty times depending on how many guides you have kidney sat through today), many crypto casinos use something called provably fair systems. These rely on cryptographic hashes and blockchain-stored “seeds” to generate random outcomes. To make it even better: the results are already locked in before the game can play out. Neither the play nor the casino itself can change it midsession!
Rules on this side of the world are never enforced by a feeble pinky promise. They are, however, programmed by code. Can it get any more transparent? In some instances, the casino may run as a hybrid-like structure. These models love to showcase their maximum transparency to their players–but they do come with trade-offs of their own. There could be higher fees with transactions and slower gameplay.
In these instances, the blockchain will behave like a good little cashier. All of those deposits, withdrawals, verifications, and proving fairness are handled by it. Meanwhile, the casino will oversee the “entertainment floor.” All of the responsibilities, such as game speed, graphics, or customer support will be handled by the casino itself.
An additional pro of the blockchain’s overall influence is its role as security. There is no single database to hack, or anything that can be altered once it is on-chain. Once any sort of financial action has left its digital footprint, that is a wrap. The blockchain opts for less blind trust and more accountability!
It was never put into place with the idea to replace crypto casinos. That is not how it works at all. The blockchain and crypto casinos are business partners. It was put into effect to anchor the casino. It will handle the money and happily enforce the rules. While the casino may run the show, the blockchain will sit in the back, collecting all those receipts.
Advantages and Trade-Offs
So far, the blockchain has one good thing after another. To be fair, this is true. It is not something to deem as “too good to be true” either. At the same time, you should not be viewing it as a flawless utopia that has all of its money raining down from the sky and nothing could ever go wrong! Side note, if anything ever claims to promise this, do yourself a favor and run very far away. Also, we must remember that the blockchain is a system that involves money and technology. It is going to be prone to some errors on occasion.
Now, let’s dive into those advantages as well as trade-offs so that you are more than prepared!
Advantages
What are the true reasons that people will not just shut up about the blockchain? Is it really that impressive? Well, first up, we should spend some time talking about that transparency factor. All of those transactions are made public. All of those deposits, withdrawals, and sometimes game fairness can be independently verified. You do not need to trust the casino if you do not feel like it. But if you really must know, then you are more than welcome to check the chain for yourself.
Cheating is rather difficult when all eyes are on you.
Next up: those quick withdrawal times! How many times has an online casino told you, “Your request will be reviewed in about 7 to 10 business days.” One thing about these crypto casinos is how your payout is being processed immediately. Not only that, it is typically sent directly to your wallet. Sometimes this process may only take a few minutes. This all depends on the network you are using.
We cannot leave out one of the stars of the show: provably fair gaming! Players can confirm that their results were not tampered with during the betting process. This is a significant upgrade in comparison to how a traditional casino operates.
Lastly, blockchain does not require any permission to access. There is absolutely no such thing as your card restricting you from any gambling transactions. Nor are there any restrictions regarding where you are in the world! Do you have a card? Check. Do you have internet access? Check. Oh, look, now you are in!
The Trade-Offs
Ah yes; the fine print no one reiterates to you to keep that flawless utopia image intact. Here is the truth: blockchain is unapologetically irreversible. Oh no, you sent your funds to the wrong address! They are all now gone (but never forgotten). No customer service miracle is coming to save you. Once a transaction is confirmed, it cannot be reversed.
We cannot forget about our absolute favorite: fees. These fees can range from mere pennies to a whopping $40 in a blink of an eye.
Now, we have user responsibility. You are quite literally your own bank right now. So if you lose those private keys, you can say goodbye to your funds forever. Yes, we understand that this is a bit harsh. The blockchain was never known to be generous.
Comparison to Traditional Casino Models
Traditional casinos are like your own, personal arcade! It has bright lights, a dealer (sometimes friendly), and someone keeping track of everything. Now picture a more futuristic arcade where scoreboards can now update themselves, absolutely no cheating is anywhere, and those tokens even have some value to you. That is what a crypto casino is. The two have plenty in common, but their differences are anything but subtle.
In a classic online casino, you have to instill your blind trust into the casino. You are trusting everything, from their servers, to their database integrity. And most are fine! This does not eliminate the mistakes or glitches, and sometimes shady operators, from lurking about. Blockchains give a hard no to any of these factors. You can verify with it, no need to gain your trust!
Crypto casinos will always operate on that blockchain. Meanwhile, these traditional casinos will rely on the banks, and oftentimes a snail could move faster than these withdrawal timeframes. For crypto, deposits and withdrawals can be almost instant. However, it is still prone to network congestion. Everyone deserves a chance to experience the delightful world of crypto.
To keep things straightforward, traditional casinos are aiming for that convenience and familiarity factor. Crypto casinos are going towards the transparency route, beckoning for their users to verify the results for themselves. One trusts humans, the other trusts math. In a world where the house will always win, it may feel a bit comforting to trust the math instead.
Common Mistakes & Safety Tips
Here we are. In the magical land of crypto casinos, nothing could ever go wrong! Except when you lose those private keys, maybe. Or if you send it to the wrong address. Or worst of all, you thought “provably fair” meant you could never lose. Reminder about the golden rule: the house always wins. The good thing is that the blockchain is secure. The players are often the opposite.
Losing Your Private Keys
Your crypto wallet’s private key is the key to the vault. A vault only you are also responsible for guarding. Do not lose it, or all those funds of yours will vanish forever. Support tickets do not have a place in the crypto casino world.
Double-check everything. You know what, triple-check everything before you even think about sending your crypto anywhere.
Sending Funds to the Wrong Address
As we have stated so many times: blockchain transactions are final. You should definitely get into the habit of verifying the addresses character by character. Consider copy and pasting rather than typing it out manually. Perhaps a small test transaction first!
Ignoring Network Fees
The reality for many blockchains is that there will be transaction fees. Say you are sending a tiny bet–but the network is completely congested! Now, you might be looking to pay more in fees than the bet itself. Try to always avoid withdrawing during peak times. Always look over the network conditions.
To put it into more perspective, you go to order a $5 latte. Then, you proceed to tip $20. That is pretty much what will happen if you go to withdraw during a congestion period.
Choosing the Wrong Casino
Blockchain improves trust gradually. That does not mean every platform is suddenly honest. In this world: reputation means everything. The reality of some hybrid casino–they are often a living nightmare! It is imperative that you spend time in doing the proper research in those licensed operators and provably fair systems.
Blockchain is meant to boost transparency, security, and fairness in crypto casinos. The number one risk is the mistakes made by a human. Math is merciless. Be sure to keep track of your keys, send your funds correctly, and pay absolute attention to those network fees.
Follow these basic rules. The blockchain does not forgive, but it will respect you when you have earned it. Now, it can act as your loyal, trustworthy dealer.
Final Thoughts
If you have made it this far without closing out midway, then congratulations! Now you can say you have a deeper understanding of how the blockchain truly works. You certainly know more than a shocking number of people online tweeting a bunch of loud nonsense. More importantly, you understand why blockchain matters so much in crypto casinos.
First: we understand that blockchain exists because trust keeps failing. These traditional online casinos demand that you should just trust them because they said so. Blockchain destroys that trust factor entirely, and replaces it with verification. Crypto casino was never interested in adopting the blockchain due to it being “trendy.” Money moves fast in this realm. Blockchain is here to bring to situations that need it most: deposits, withdrawals, and that special fairness factor.
Second thing to emphasize: blockchain is not the casino! They are business partners, not identical twins. It is the foundation holding it up, or the anchor keeping it grounded. Most of these crypto casinos are hybrid-systems. Due to this, the games and websites are centralized. Behind the scenes, the blockchain is booked and busy, working on serious tasks. The value is being tracked, enforcing rules, and showing it all to you when money finds a new pocket to call home. Blockchain is the cashier that never sleeps, nor does it forget.
And last, but not least: the blockchain was never here to guarantee winning. It is all about honesty! Just because something is considered “provably fair” does not make it profitable. The odds just are not altered after you click “bet.” Blockchain only cares about making sure that everybody is playing by the rules.
Blockchain turns crypto casinos from those “You can trust us!” environments into “Come see for yourself!” ones. Now, your precious payments are sped up, all the transparency in the world is improved, and your reliance on financial institutions is reducing. The players now have no choice but to be responsible for their own decisions and garner improved awareness.
You certainly have a lot to remember. Remember this if you think you can only take away one thing: the blockchain can protect from deception–but you play at your own risk!
As we have so famously made the suggested advice by now over and over again: if you cannot trust it, you can always verify it!