How Blockchain technology is a Boon to the Online Casino Industry
A handful of huge online sports betting behemoths control the betting market. Restrictive and ever-changing regulatory betting settings have created a prohibitively costly barrier for new players wanting a major piece of the online betting pie.
However, the advent of blockchain technology has presented a once-in-a-lifetime opportunity for forward-thinking brands in the sports betting industry. This uncharted region might lead to a whole betting universe in which self-regulated companies operate autonomously, freely, and democratically on the open blockchain, challenging the current quo of huge betting organizations.
These organizations function without the constraints or regional biases that centralized oligopolies do. A system that is genuinely trustless, immutable, and indestructible is evolving and smart contracts are helping to build out this trustless ecosystem.
Smart contracts are basically computer programmes that are recorded on a blockchain and are activated when certain criteria are satisfied. A common use of this technology is to automate the implementation of an agreement so that all parties may be confident of the conclusion instantly, without the participation of a middleman or the waste of valuable time.
Smart contracts may then be modified to provide gambling services like bets on sports events, lotteries, and a variety of other possibilities. The smart contract may be configured to enable participants to deposit money into the smart contract and then wait until the event concludes before calculating payments.
Before automatically sending rewards, the smart contract may be configured to validate the results from different sources to ensure that the proper outcome is reached, and then payout to winning participants depending on specified rules and odds. This provides participants far more trust and transparency than a conventional bet since all transactions via the block containing the smart contract are recorded in the Blockchain eternally.
Because of its adaptability, the smart contract is suitable for gaming, with a wide range of uses and advantages. One of the primary advantages of adopting smart contracts is that the system is provable, fair, and decentralized. The audit trail of data across a block gives a previously unrivaled capacity to demonstrate that the system is provably fair.
This allows players to go back through the game and confirm that everything is as it should be in the game they’re playing. Because the Blockchain keeps a comprehensive set of historical transaction histories, participants may have a far broader and clearer view of each game’s activity. This will enhance trust between the Provider and the Customer.
Because of the Blockchain’s availability and decentralized nature, gamblers will be able to avoid the risks and expenses associated with bigger organizations by administering the contracts themselves. This allows a person to function as a banker for a group of players, which is very useful in games like poker, blackjack, and baccarat. Players will notice a significant reduction in administration and operating expenses by controlling the betting process themselves, thus driving the use of Smart Contracts. As technology advances, the increased speed and lower transaction costs will further add to the advantages for participants.
House edge is another phenomenon that can be combated via blockchain technology. The House edge is a phrase that refers to the mathematical advantage that the gambling game, and hence the commercial gambling venue, has over you over time while you play. Because of this advantage, the venue is guaranteed a certain percentage return over time, while you are guaranteed a certain percentage loss on your wager.
In gambling, one thing is certain: nothing is left to chance. In the end, the house is always victorious. A casino is a company, not a non-profit that gives out free money. It, like any other company, has a business plan in place to assure its success.
The chances of the casino winning your money are larger than the odds of you winning the casino’s money, regardless of the game you play. Why? Because the house has an inherent advantage in all casino games, which reduces the odds of winning as well as the magnitude of possible winnings.
Because the numbers on a roulette wheel range from one to 36, you could assume that the chances of winning a single number wager are 36 to one. Roulette wheels, on the other hand, have a zero, and in certain cases, a double zero or even a triple zero. Instead of 36 to one, the real chances of winning are 37 to one, 38 to one, or 39 to one. 1
The house edge, or the casino’s odds advantage, indicates the average gross profit that each game may dependably generate. A casino could make a small profit of roughly 0.5 percent to a little more than 2 percent on the games with the lowest house edge. It may create profits ranging from 15% to 40% on other games.
LunaFi is a decentralized betting protocol where users become the house, with the aim of eliminating the “house edge” that most betting houses have. The platform’s purpose is to create a fair and trustworthy environment for developers, liquidity providers, and customers to engage. Liquidity providers put money into house pools in exchange for a share of the earnings and incentives in $LFI.
The protocol’s first application is Lunabets. It’s a non-custodial betting software that uses LunaFi smart contracts and liquidity pools to allow trustless transactions. In addition to betting, users are rewarded with $LFI, which they may collect from LunaFi.
On June 8, 2022, the platform will have its Token Generation Event (TGE).
LunaFi currently works on Ethereum (Layer 1) but plans to bridge over to Polygon (L2 for Ethereum) and SX Netowork (Layer 2 network for Polygon. The platform is also planning a $100k airdrop to SX holders on the Sx network.
Cryptocurrencies are quickly becoming the most efficient and cost-effective method of transferring huge quantities of money through digital transactions.
Blockchain technology is being embraced by the online casino industry as one of the most secure and trustworthy methods of doing business in both the interests of the merchant and the customer, and as such, it is here to stay for the foreseeable future. Casinos must either adapt or risk becoming obsolete in a system that no longer suits the current digital economy.