Blockchain is widely regarded as one of the most advanced technologies of the 21st century, alongside AI (artificial intelligence) and VR (virtual reality). But what is this technology? What does it have to do with the iGaming sphere? What can blockchain offer beyond Bitcoin?
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What is blockchain technology?
Although blockchain is still a young technology, it has already sparked a revolution in areas such as payment solutions, regulatory compliance, and gaming. If you want to get a glimpse of the future of the iGaming industry, we suggest you closely follow the development of blockchain.
But what exactly is this technology? Simply put, blockchain is a way of recording and storing information, making it nearly impossible to tamper with data. The technology does not use a single centralized ledger of transactions but rather a digital ledger that is duplicated and distributed across the network.
Transactions are verified by comparing the information stored in these ledgers (the information is stored in "blocks," hence the name blockchain). This means that, to falsify data, the vast majority of computers on the network would need to be compromised. While this is theoretically possible, it is not feasible in practice.
Blockchain and iGaming
It's important to realize that, although cryptocurrencies are created using the blockchain protocol, the potential for their application goes far beyond that and remains largely unexplored.
As for the iGaming sphere, the main focus of blockchain technology application is in working with payment systems. We can now observe the rapid growth of sites offering players crypto casinos and various sports betting platforms. Additionally, market leaders have long supported deposits in various cryptocurrencies (1win Partners is among them).
But everything has a downside. The main challenges in the strict implementation of blockchain technology in iGaming are the difficulties in complying with KYC (Know Your Customer) and AML (Anti-Money Laundering) policies. These policies are particularly strictly enforced in countries where gambling is state-regulated.
The most striking example is the United Kingdom. The UKGC (United Kingdom Gambling Commission) requires notification of the introduction of new payment methods. This is necessary to verify compliance processes after the integration of new payment methods. And while cryptocurrencies are recognized and authorized by the UKGC, the UK commission is relentless when it comes to the unique challenges that cryptocurrencies bring.
Operators must obtain all the necessary information to be compliant, including determining the source of funds. The operation of compliance triggers is also challenging, given the fluctuations in cryptocurrency exchange rates, which are much higher than those of fiat currencies.
All of this may seem complicated, but, in short, the main difficulty associated with regulation (when discussing the integration of cryptocurrencies into casinos) is identifying the source of funds. Transactions in the classic banking sphere are much easier to track because many processes require identity verification, and almost all cryptocurrency wallets are anonymous.
But, as mentioned above, cryptocurrency is only one part of blockchain technology. What might not create obstacles, but rather improve and advance the iGaming sector.
Some market participants are well aware that blockchain can be used to increase regulatory compliance and player protection.
This technology is used to securely record everything that happens on a platform. Operators can then receive and store reports on player activity, ensuring their privacy but, if necessary, can provide the required evidence to the relevant authorities.
Conclusion
This is just the tip of the blockchain iceberg. We haven't even touched on NFTs, which are actively and directly used in games. Leave your comments on our social media, and we'll surely release a continuation of this article.
And, for the best cooperation terms, contact the manager of 1win Partners.
Source: 1win Partners
