After almost 10 years when Bitcoin was founded, you no longer use blockchain for payments only. In these days you can count your sports activity with a blockchain, get automated donations for your blog posts on Steemit, many big brands such as Toyota are using the technology to decentralize once centralized operations.
Experts believe many industries will never work the same as trust is now provided by the code, not by the person or company with an expected goodwill. Online gambling industry is the one that will eventually be transformed by these developments.
Decentralized casino concept
Majority of online casinos have a big trust problem which is solved by third-party audits. The same as the way banks were checked by rating agencies prior to 2008.
The problem is the trust itself. Cards are shuffled by the centralised code which is hidden internally by the online casino and occasionally checked by third-party authorities.
Nowadays people can choose an alternative - blockchain casinos. It is coded on a decentralised network and can be checked any time and in any place. That gives you a full guarantee that the casino won’t cheat, as it can be easily spotted. However, don’t get fooled, there are a few types of crypto casinos.
Differences between bitcoin and blockchain casinos
Bitcoin casino
A Bitcoin casino ( for example: https://bitcasino.io/ ) is a casino which uses Bitcoin or other currencies only as one of its in-game currencies. Technically a Bitcoin casino is a gambling platform, just like any other kind of casino, which offers many in-game currencies such as USD, EUR, GBP, etc; it just happens to be that one of its in-game currencies is Bitcoin, or any other similar cryptocurrency. However a Bitcoin casino promotes its Bitcoin as an in-game currency since there are many people who like buying services because they can pay using Bitcoin or any other cryptocurrency.
Blockchain casino
A blockchain casino ( for example: edgeless.io ) is a casino which uses blockchain ‘smart-contracts’ on their games back-end infrastructure. Right now ethereum blockchain ‘smart-contracts’ are the most widely adopted solution followed by EOS.
A ‘smart-contract’ is a decentralized programming code which provides benefits such as transparency for the apps it uses. In the casino case ‘smart-contracts’ add an extra layer of transparency to a gambling service. For example casinos which use a ‘smart-contract’ have:
A casino bankroll publicly visible on the blockchain. This means that every stakeholder can check the size of the casino’s bankroll and be sure that the operation runs properly and fairly.
A random number generator, RNG, (a mechanism which rolls slots, shuffles cards and rolls the final outcome). Having RNG processing on a blockchain makes the final outcome transparent. Player’s no longer need to question whether the casino is cheating or not.
Casino incoming deposits and withdrawals that can easily allow anyone to check how active the gambling operation is.
Without ‘smart-contracts’, Bitcoin casinos cannot offer any of these features.
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Read full blog post: https://www.edgeless.io/blog/bitcoin-casino