Decentralized Casinos: What Is Decentralized Gambling?

You might have already heard the term "decentralized." But did you know that we also have "decentralized casinos" online, and there's another new term quite common these days - "decentralized gambling."

Unsurprisingly, new technologies have transformed the gambling world from traditional land-based casinos to online casinos.

However, that’s not all. We are firmly moving towards another change in the field of gambling - decentralized casinos.

This brand-new concept operates on blockchain technology, ensuring safe, impartial, and transparent gaming.

If you’re eager to learn more about this innovative online casino version, how it works, and why it is the future of gambling, stay tuned!

An Insight into Decentralized Gambling

The distinctive feature of decentralized casinos is that they are created on the blockchain, meaning there is no central control.

For a better understanding, note that traditional online casinos use centralized servers to structure game outcomes and financial transactions.

On the other hand, blockchains, the basis of decentralized casinos, don’t allow data to be changed once recorded. The blockchain is a network that stores every transaction across many computers - the definition of decentralized. So, as a user, you can trust this setup, which is not owned by a single entity.

How Decentralized Casinos Work

The smart contracts within decentralized casinos are self-executing agreements with lucid instructions written into codes. Since these are rule-enforcing contracts, there is no need for an intermediary.

Smart Contracts

These are the operational aspects of a decentralized casino. They include betting placement, winning payment, and game results, to name a few. By performing all of these activities, smart contracts ensure participants play on equal terms.

You should know that decentralized casinos are immune to unauthorized activities despite being stored on immutable distributed ledgers within the blockchain.

Cryptocurrency Transactions

Online casino players use digital currencies to place bets and receive payouts. The most recognizable cryptocurrencies associated with decentralized gambling are Bitcoin and Ethereum. The blockchain turns these transactions into a transparent book of accounts regardless of the financial activity performed.

Random Number Generation

That's another term we couldn’t skip. Since fairness is paramount to gambling, decentralized casinos use blockchain technology to ensure this as much as possible. This is when Random Number Generators (RNGs) enter the game. They make it impossible to manipulate the results of a game.

By the way, players can check the RNG algorithm if they doubt the fairness of a game.

Decentralized Apps

Players use Decentralized Apps (DApps) - blockchain-based applications to gain access to various decentralized casinos. They can link you with your favorite gaming platforms, where you can place bets or claim winnings.

Decentralized Gambling Benefits

Decentralized casinos considerably outrun traditional online casinos due to their outstanding benefits that attract players and operators.

Check out the key advantages of decentralized gambling:

Transparency

Transparent and unchangeable records are the key feature of decentralized casinos, where all transactions and game outcomes are recorded using blockchains. So you can easily determine whether the online casino you’re using is safe and transparent.

Security

With decentralized casinos, you can benefit from enhanced security, all due to blockchain data storage. In addition, cryptographic solutions reduce hacking attempts and minimize fraud.

Equity

Blockchain-based RNGs and smart contracts ensure unbiased game outcomes. To make it clear, everyone plays at ground level, and the game is not manipulated.

Lower Costs

By eliminating the intermediaries, decentralized casinos have lower operation costs. Consequently, they offer reduced fees for players. You can also benefit from increased winnings.

Accessibility

Regardless of your physical location, you can access decentralized gambling platforms operating on blockchain networks with one condition - you have an internet connection and cryptocurrency.

Anonymity

If you want to keep your anonymity, you should know that decentralized gambling doesn’t require any personal information. So, your identity is safe with this brand-new version of casinos.

Challenges and Considerations

Despite their many advantages, decentralized casinos also come with a set of challenges:

Regulation

So far, there is no established legal framework to govern decentralized casinos. Although different jurisdictions have different regulations, operators and players are still uncertain about how to proceed.

Technical Complexity

If you want to benefit from all the possibilities decentralized gambling offers, you must at least understand blockchain technology, let alone cryptocurrency. We wouldn’t say it is that hard, especially in an era when you have access to a lot of information. Yet, decentralized gambling may seem difficult to non-tech-savvy players.

Instability

Cryptocurrency volatility means prices change constantly, affecting the value of bets and winning substantially.

Adaptation

Despite its vast popularity, decentralized gambling isn’t a fully settled field. Experts must build trust and raise awareness around blockchain technology to enhance its level.

The Future of Decentralized Gambling

With more players and casino managers becoming aware of its relevance, the future looks quite promising for decentralized gambling. The innovative changes in blockchain technology and the use of cryptocurrencies will propel the growth of decentralized casinos.

This is what it's fair to expect, based on the latest trends:

User Experience

Developers integrate more and more simplicity into decentralized casinos to ensure they are easier for potential players to use and access. So, if you’re not much into technology or cryptocurrencies, that will probably no longer be a problem.

Integration of DeFi

No doubt, Decentralized Finance goes hand in hand with decentralized gambling. We anticipate more opportunities for players to use and earn in cryptos because those two fields are expected to connect even more.

Tokenization

Shortly, tokenization allows you to earn assets in games. As a result, you’ll be able to win, trade, and use digital assets during your gambling sessions.

Regulatory Transparency

Regulation is essential in online gambling, and with regulators becoming more aware of blockchain technology, we are positive about the future of decentralized gambling. We expect more regulatory bodies to create frameworks to guide this type of gambling. So, the field will grow while protecting its players.

If you’re looking for a new decentralized casino to gamble online, Galactix.io offers you the ultimate experience with an array of entertaining games without facing risks. Mixing blockchain technology with immersive games, our online crypto casino is among the newest and best on the market.