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Although it has been a long time since we first heard about Bitcoin, decentralized currencies are still on the rise and also entering new industries. But the subject of blockchain and cryptocurrencies is still a mystery: many people do not know how it works, so there is a great fear of using it. People are wondering if it is legal or safe to convert their traditional money into decentralized money. We are here to answer all these questions and dispel doubts, especially those that arise in the entertainment industry, focusing on the use of crypto in online casinos.
What are decentralized currencies?
Let’s go back to the beginning – what is cryptocurrency? It is a digital form of money, to be precise a currency, that uses high technology to secure information and communication during transactions and verify ownership of the currency while it is being exchanged. The main difference between a traditional and a digital currency is that the former is controlled by the authorities: it is fully regulated and produced only by the government of each country. On the other hand, cryptocurrency is created in a process called mining, which can be done by anyone, which is basically solving mathematical problems with proper algorithms that result in obtaining coins. Cryptocurrencies are also purely digital and are not regulated or dependent on any authority.
Cryptocurrencies in casinos
So where are cryptocurrencies used? This new type of money is revolutionizing online casinos. But how has it happened? Online casinos are growing rapidly and introducing more and more technologically advanced solutions, making the digital customer experience even better. So it is not surprising that the new payment technique was also introduced there. Carrying out a transaction with cryptocurrencies is not only fast (one can easily deposit or withdraw funds), but also very reliable: the transactions use encryption and, due to their advanced coding, are very secure. So it is not surprising that more and more players choose casinos that accept ethereum or bitcoin.
On top of that, some offer their customers lower transaction fees and better wagering requirements. Cryptocurrencies are also well known for guaranteeing the complete anonymity of their holders. How is it related to online casinos? Player details such as location are hidden not only from the casino but also from the authorities, making it nearly impossible to deduce which jurisdiction you are under. no wonder why online casinos and cryptocurrencies they are a perfect couple!
What cryptocurrencies are out there?
We have already established what cryptocurrencies are, but just like with traditional ones, we have different types: dollar, euro, pound, we also have different types of cryptocurrencies to choose from. The best known and oldest virtual currency is Bitcoin. It is a fully peer-to-peer money system that was founded in 2009 by Satoshi Nakamoto, whose identity to this day is unconfirmed. The second most popular is Ethereum, which was introduced in 2015. It is more precisely a blockchain platform, as well as a currency called Ether (ETH), commonly known as Ethereum. This open source project went through a major upgrade, resulting in Ethereum 2.0 or Eth2 with the main goal of improving speed and increasing overall efficiency.
Is crypto legal?
And for those who are still not sure about the whole cryptocurrency business, yes, it is legal. Some people may be confused due to the lack of regulations in many countries. This is because the technology is still new and also because its main idea was not to be controlled by any individual or entity (such as governments). And since it is global and spread across the world at all times, it is almost impossible for a governing body to regulate it. And physically there are no headquarters or offices that can potentially be investigated. Everything is on the Internet that cannot be controlled.
Online casino licenses
In order to maintain its reputation and operate legally, an online casino must apply for a special gaming license. Therefore, the introduction of decentralized currencies such as Ethereum, Bitcoin or Solana in your payment option is usually a further addition. However, there are often no particular license requirements for Bitcoin or Ethereum, but of course there are some guidelines and best practices that need to be followed.
But what does it mean for a casino to be licensed by an authority? It means that the licensing body assumes some responsibility for checking the performance of the subject for whom the license was issued. Regulations are constantly changing and vary from country to country, so it is important to stay up to date with the newest. Due to the license, the levels of trust between the players are much higher. Authorities are auditing casinos and issuing proper certificates of compliance that assure gambling enthusiasts that the particular casino is trustworthy. The license also allows you to purchase suitable gaming software from well-known and reputable developers.
Andrew is a blockchain developer who developed his interest in cryptocurrencies during his postgraduate studies. He is a keen eye for detail and shares his passion for writing along with being a developer. His back-end knowledge of blockchain helps bring a unique perspective to his writing.
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