Blockchain Technology, Security & Cryptocurrency

Rewriting Trust

The iGaming industry is undergoing a significant transformation driven by security concerns and a growing demand for transparency. Blockchain technology, which supports cryptocurrencies, is a prime example of this shift.

Its decentralized and immutable ledger ensures secure transactions and removes the need to rely on a central authority's integrity, making it an ideal solution for increasing trust and transparency in iGaming.

Oddsgate recently kicked off a study about the future of iGaming in 2050, with security as one of the key themes. It’s anticipated that blockchain will become crucial in many iGaming platforms, leading to the disappearance of intermediaries and cost savings for operators.

Understanding Blockchain Technology

This groundbreaking transparency benefits both players, who can verify game fairness directly, and regulators, as this technology provides a clear means to showcase their regulatory compliance and dedication to fair practices.

Each transaction is logged as a “block” of data encompassing details like who, what, when, where, and how much. These blocks connect in a chain, reinforcing the other ones, with every block verifying the timing and sequencing of transactions.

“Blockchain is revolutionising iGaming by offering increased security and transparency, cryptocurrencies for payments, provably fair gaming algorithms, and the potential for decentralised gambling platforms.”, said Luiz Moutinho, Marketing at the University of Suffolk’s teacher, in his contribution to the study.

Smart Contracts and Digital Currency

A smart contract is stored on the blockchain, runs automatically, and carries out actions when certain conditions are met. For example, it can automatically send money when a payment is confirmed.

Blockchain-based systems, including cryptocurrencies, provide faster, cheaper, and more transparent transactions than traditional methods. A key distinction is their decentralized nature, operating without the oversight of central entities such as banks.

Additionally, the security and efficiency of cryptocurrency payment processes are being further improved through the growing integration of biometric technologies.

Biometric data such as fingerprints, facial recognition, or iris scans can authenticate users quickly and accurately, reducing the risk of fraud and eliminating the need for traditional passwords or PINs.

Challenges and Strategic Points

Integrating blockchain and cryptocurrency into iGaming offers clear benefits, but it also comes with some challenges:

• Regulation is still unclear in many regions, making compliance difficult for blockchain-based games or accepting cryptocurrency;

• Crypto anonymity raises anti-money laundering concerns, though blockchain transparency helps offset some risks;

• Crypto volatility poses risks;

• Most iGaming users are unfamiliar with crypto tools. Hybrid models help bridge the gap.

Key Considerations

As Blockchain technology evolves, its impact on the iGaming industry will be increasingly significant. Its ability to deliver transparency, increased security, and automation is helping redefine trust between operators, players, and regulators.

Cryptocurrencies, especially when used with smart wallets, give users greater autonomy over their funds and personal data. Players can benefit from fast, secure, and anonymous transactions, while operators reduce costs and boost efficiency.

Ultimately, Blockchain’s potential to reshape iGaming is clear. If you want to know more about the future, check out the study “Future of iGaming 2050”, launched by Oddsgate.