Blockchain Technology in the Betting Industry: Transparency and Security

The crypto industry is on everyone’s lips today, and periodic surges in the value of the main tokens excite the minds of not only experts, but also ordinary people. One of the global bookmakers 1Xbet embedded crypto operations into its app, read review about all its features. As it turns out, the use of cryptocurrencies and blockchain technology allows us to cope with these problems quite well, and below we will consider all these aspects in detail.

How does it work?

In the blockchain model, data is stored on distributed nodes in encrypted form. The lack of centralization significantly reduces the number of access points that attackers can exploit. Blockchain encryption also uses advanced cryptography designed to be computationally unbreakable. Such security measures protect customer data and prevent fraud.

Pros and cons of using blockchain in betting

So, what does the use of blockchain give to players and bookmakers that have implemented this technology?

First, let’s look at the advantages for players:

• Anonymity

If you make a choice in the traditional way, you will at least need to link a bank card or e-wallet number to your account, at worst – enter your real name/surname, email address, or even passport details. Blockchain only operates with the number of the cryptocurrency wallet, so the possibility of deanonymization (for example, by tax authorities) is completely absent.

• Transparency factor

Bookmakers  prefer to hide winnings from clients, as well as payments and other important information, which creates the preconditions for various manipulations with bets. Blockchain involves the use of smart contracts and verified records that cannot be changed after being included in the block.

• Guarantee of payments

The bookmaker is no longer able to block the payment – everything is done quickly and without its participation.

• Speed ​​of processing the results of the event

After entering the final result, the winnings are calculated automatically and almost instantly. And the amount itself is credited to the wallet very quickly, while crediting to a bank card takes time.

You may ask, what is the benefit of the distribution registry for the? The first is quite obvious – it is the minimization of reputational losses. The second point is the ability to avoid regulator prohibitions, because the use of blockchain implies complete anonymity for the bookmaker. Finally, the lack of licensing allows you to enter the business with lower costs.

Current problems and perspectives

Although the blockchain has great potential, there are still problems that prevent its widespread implementation. Many promising gambling-focused blockchain projects have yet to fully realize their vision. Scalability and transaction throughput remain limiting factors for the number of concurrent users that cryptocurrency platforms can support. Thus, we should wait until crypto-capacity is extensive enough to satisfy the demand.