How Blockchain-Based Payment Systems are Making Online Casino Transactions Faster and More Secure

Written by:
Aaron Goldstein
Published on:
Mar/22/2023

The market for cryptocurrencies has ballooned. It is currently estimated to be worth about $2 trillion.  This means more rules, more regulation.

These regulations will serve to enhance the internet casino experience.  The recent turmoil on the investment front (think FTX) is leading to greater transparency and clearer regulations that continue to be incorporated into the online casino ecosystem.  Better player protection is never a bad thing.  

Online casinos have been around for more than two decades, but they have come a long way since their inception.  Over this time, the sector has had to find new payment methods as processors come and go and technology keeps evolving. Changing laws within individual jurisdictions have played a role as well, keeping operators on their feet. Bitcoin and other cryptocurrencies proved to be the industry savior, though adaptation has been slow for the most part over the better part of a decade.

That's about to change.  Cashless payment systems are now taking hold across many industries at a lightning fast pace post-pandemic.  In the US at least, direct bank transfers like Zelle are becoming a "must" for businesses and even personal transfers. Credit card portals can be found in a number of fast food restaurants, bars, parking garages, you name it.  License plate readers pay-by-plate on toll roads continue to replace human toll booth collectors. 

But it is Blockchain-based payment systems that seem to be the preferred method in the online casino sector.  The concept results in transactions that are faster and more secure.

One platform that is leading the way is Moonrocket Affiliates, which uses blockchain-based payment systems to enhance the online gambling experience. With 15 years of industry experience, the brand offers online casinos the ability to track, analyze, and gain control over performance. Moonrocket Affiliates share a goal of building a sustainable partnership to optimize and scale business growth while offering unique player entertainment.

If you are unfamiliar with the blockchain and how it works, we take a look below at some of the critical concepts.

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What Is Blockchain Technology?

Blockchain technology is a decentralized ledger system that is used to record and verify transactions. It was originally designed for cryptocurrency transactions, but its potential uses have expanded to many other industries, including iGaming.

A blockchain is a chain of blocks that contain information. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Once a block is added to the chain, it cannot be altered, which makes it tamper-proof and secure.

How Blockchain-Based Payment Systems Work

Blockchain-based payment systems are similar to traditional payment systems in that they allow users to send and receive money. However, blockchain-based payment systems are faster, more secure, and more transparent than traditional payment systems.

In a blockchain-based payment system, a user sends a transaction to the network, which is then verified by other users. Once the transaction is verified, it is added to a block, which is then added to the blockchain. The transaction is then considered complete.
One of the key benefits of blockchain-based payment systems is that they eliminate the need for intermediaries, such as banks. This means that transactions can be completed faster and with lower fees.

Blockchain-Based Payment Systems

Blockchain-based payment systems are transforming the online gambling industry by making transactions faster, more secure, and more transparent. These systems use decentralized ledgers to record transactions, making it virtually impossible for fraudsters to tamper with the data. This enhances the security of online transactions, which is a top priority for online gambling platforms.
As we've reported here on Gambling911, blockchain-based payment systems are also leading to strategic partnerships between online gambling platforms and blockchain companies. These partnerships are driving innovation in the online gambling industry by combining the strengths of both industries.

One of the ways that blockchain-based payment systems are enhancing the speed of online transactions is by using stablecoins. Stablecoins are cryptocurrencies that are pegged to the value of a stable asset, such as the US dollar. This means that their value is not subject to the same fluctuations as other cryptocurrencies, which can be a concern for users.

Decentralized payment systems are another key feature of blockchain-based payment systems. These systems use non-custodial wallets, which give users complete control over their cryptocurrency. They can send and receive payments quickly and securely, without having to go through a centralized authority.

Benefits of Blockchain-Based Payment Systems in iGaming

Blockchains have a wide range of technology applications, as described by Insider Intelligence, in not only the online gambling industry but also in business and life. From enhancing the security of transactions to creating new revenue streams through innovative products and services. Blockchain-based payment systems offer several benefits for online casinos and their customers. These benefits include:

  • Speed: Transactions on blockchain-based payment systems can be completed in seconds, which is much faster than traditional payment systems.
  • Security: Blockchain-based payment systems are more secure than traditional payment systems because they use advanced cryptography and tamper-proof records.
  • Transparency: Transactions on blockchain-based payment systems are transparent, which means that users can see exactly where their money is going.
  • Lower fees: Because blockchain-based payment systems eliminate intermediaries, they are often cheaper than traditional payment systems.
  • Global accessibility: Blockchain-based payment systems can be accessed from anywhere in the world, which makes them ideal for online gambling.

Blockchain-based payment systems are transforming the online gambling industry by making transactions faster, more secure, and more transparent. As the iGaming industry continues to grow, it is clear that blockchain-based payment systems will become more prevalent.
With their many benefits, these payment systems are sure to transform the way we think about online gambling transactions.

- Aaron Goldstein, Gambling911.com

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