Many people remember casino gambling being something you had to go out to do. However, we live in a modern world where innovative technologies are changing the way we do everything… And playing casino games is one of them.
Gambling is one of the sectors that has started to tap into the potential of blockchain – and has introduced to us the concept of gambling and casino DApps. There are lots of benefits to a gambling DApp. Decentralized casinos BTC offer total anonymity, instant withdrawals, dividends, security and provably fair casino games. The reason? Because of the inherent protocols and use of smart contracts which we will look at later.
Here, we will bring you the best decentralized casinos, how they work, the pros and cons of playing on decentralized casinos and how they compare, overall with traditional, centralized fiat casino sites.
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Decentralized Casinos & Gambling DApps
DApps – what we generally call Decentralized Applications – are open-source apps (applications) that have been developed on a blockchain network. Just as with regular apps, DApps are software programs that have been designed with the end user in mind. However, unlike regular apps, they have no centralized body or authority controlling them.
Because they are decentralized, all information will be kept on the blockchain and programmed via smart contracts. These will allow for the mediation of transactions and agreements using code.
So, essentially, a DApp casino is just a casino that runs on software which is characterized by its decentralization. That’s not to say that these are simply just crypto casinos. No, they are casinos that run entirely on a blockchain network that offers players all the advantages enabled via technology and its associated cryptocurrencies.
So, what is decentralized casino and what does it mean? Generally, decentralized casino sites offer players a wide selection of games including slot games, roulette, blackjack, baccarat, craps, poker and more.
At this moment in time, the most popular blockchain gambling and casino platforms for decentralized apps include Ethereum, Tron and EOS. These platforms can host thousands of casino DApps – and the number is growing due to the increase of developers that have started to tap into this market.
Back in 2018, the gambling market across the globe was valued at close to $450 billion – and 10% of this came from the online gambling sector. It’s not hard to see why interest is growing.
However, because many people rely on central authorities and governing bodies to protect their best interests, we might ask – ‘is decentralized casino fair?’. Although we can’t ever guarantee every single casino is fair, we can certainly say that the ones on our list are – and the concept of DApps and provably fair games should be cause for optimism.
How Gambling DApps Work
Above, we touched on the concept of smart contracts and they are central to how DApps work. All interactions within a decentralized app are automated through these smart contracts.
A smart contract is an innovative technical creation within the blockchain and DApp ecosystem. Smart Contracts are written as codes and will automatically be executed whenever a predetermined condition has been triggered.
In a traditional casino site or mobile app, it is a central provider that controls its workings and how the funds are held in your account. This means that if you happen to choose a scam site then they could run off with all your money. However, if you use a DApp casino, there is no central authority or third party that controls your money. Instead, every transaction is processed through its smart contract code.
So, any exchange of funds that happens between the player and the game goes directly through the decentralized application.
As we mentioned previously, developers use the open-source network of blockchain casino and gambling platforms to build their smart contracts and DApps. One of the most popular platforms for DApps, not just in this sector but all sectors, is Ethereum. Back in 2019 around 50% of DApps built on the ETH blockchain were used for casino and gaming apps.
However, in the years following TRON and EOS have also been popular networks for the building of gaming DApps, with TRON boasting the biggest growth. In addition, gambling and online gambling activities on TRON rose 121%. It continued rising by around 14% month on month during 2020.
Centralized vs Decentralized Casinos
In essence, a DApp casino works in a similar way to a regular online casino – in so much as they both give you the tools to gamble online. However, there are several differences to note. Basically, the benefits that we have looked at in-depth above are the main differences between a traditional casino and a DApp casino. These advantages address many of the loopholes that we find in normal, centralized casinos.
If you are even vaguely familiar with cryptocurrencies, you will know that they can be immensely volatile. One of the main reasons why traditional online casinos can maintain loyalty is their long-term sustainability. DApps don’t have that just yet. However, Decentralized Apps are still growing in popularity and there is potential for extensive growth in the near future.
When you start looking at how they work, DApps offer numerous advantages that you simply can’t ignore. When more investors start to capitalize on this efficiency it may be that DApps start to take over the online casino and gaming industry.
The Most Important Advantages of Playing Decentralized Casinos
Aside from the fact that decentralized casinos accept most cryptocurrencies such as Bitcoin, Litecoin, Ethereum, Dogecoin, Tronix etc. (meaning they are very convenient to use) – here are the main advantages to playing at a DApp online casino:
- Privacy and Anonymity
- Lower Fees
- Fast payouts
- Provably fair games
- Security and transparency.
Privacy and Anonymity
There are still several countries where online gambling hasn’t yet been legalized. There are even those whose banks still won’t support transactions into and out of online gambling sites. Therefore, blockchain-based casinos offer players in these countries an alternative.
Cryptocurrencies and altcoins such as BTC facilitate transactions. Because all BTC transactions are entirely anonymous, it allows a player to gamble freely using BTC (and other cryptos) without being seen by the country’s authorities and without banks blocking their transactions.
In addition, because there are no KYC checks as is the case with traditional casinos, there are now many anonymous casinos which allow you to play from start to finish without entering any of your personal information at all.
Another very appealing advantage of playing at a decentralized casino is that transaction fees are so low that they are negligible. Because there is no middle-man when playing on a DApp casino, all are peer-to-peer transactions. This means reduced costs and reduced traffic.
In addition, one way in which DApps casinos engage players is by rewarding dividends via their staking mechanics. For instance, any DApp casino that runs on TRON will offer dividend income to its players with its own TRONIX tokens. Bets will be rewarded with token dividends; the more you have, the more you can earn.
Although Bitcoin bonus and welcome offers are very appealing, DApp casinos can offer massive cashback incentives – as well as the chance to start earning a passive income.
When playing at an online casino, the time you end up waiting for your withdrawals can be infuriating. It can take days – and even more than a week for your funds to clear into your account. However, by using cryptocurrencies at an online DApp casino, you can enjoy instant payouts.
Provably Fair Games
Crypto casinos and DApps are provably fair casinos, which means you don’t have to use blind faith when playing their online casino games.
A provably fair game works with a blockchain-enabled cryptographic hash function and seed. That means that as a player, you will be able to check and verify the outcome of every single game. This technology means that it is impossible for any person to manipulate the result of any games in provably fair casinos.
All information about the game results, outcomes and bets will be stored on the blockchain ledger, which is completely transparent. This is unique to decentralized casinos and DApps and is something a standard casino cannot claim.
In addition, in the more traditional casino, the casino always has the house edge – which means that it will always come out as the winner in the end. In some casinos and games, the house edge can be vague and even unfairly high.
However, because DApp casinos have lower operating costs, this allows them to offer a lower house edge. That means that players can enjoy extremely high payout percentages, sometimes as high as 99.99%. The RTP% of each game is also clearly shown.
Upgraded Security with Decentralized Gambling
The issue of security is incredibly important in every aspect of online gambling. Cryptocurrency casinos raise the bar even more. Anywhere that personal data and financial data are stored is susceptible to hackers. However, because blockchain is decentralized and no data is stored, it isn’t vulnerable in the same way.
Cryptocurrency transactions are a lot more secure in comparison with fiat transactions. Players aren’t required to put bank details or debit card details online, which decreases the risks. In addition, DApps also use cryptographic protocols which offer optimum security. This means that any transaction stored cannot be imitated or forged.
Because information on the blockchain ledger is open-source, anyone that is connected to the network is able to access the ledger to validate it. This will guarantee full transparency between the DApp casino and its players.
So, hopefully, we have covered the DApps and decentralized casinos – what they are, how they work and the advantages of playing at DApp casinos rather than traditional fiat casinos. We have also given you a list of what we believe to be the best DApp casinos out there, so you don’t need to hunt one down from the thousands that are now available.
Here are the main things to remember when choosing a good DApp casino:
- A trusted DApp casino will have a large player-base
- A good selection of provably fair games
- Easy to navigate
- Smooth and seamless end-to-end crypto gambling experience.
Given the quality and quantity of excellent DApp casinos and the advantages they have over traditional centralized casinos, why not try one out for yourself?
Decentralized Casinos FAQs
What is a decentralized casino?
A decentralized casino is a casino that isn’t run or governed by a central body. It runs on blockchain technology via smart contracts and all deposits and withdrawals are made using cryptocurrencies.
Is a decentralized casino safer than a traditional casino?
Yes, they are. When you deposit and play at a traditional online casino, you will be required to enter personal information and financial information onto the web. This means that you are leaving your information vulnerable to hackers. Because cryptocurrency transactions are anonymous, your money and information remain completely safe.
Are decentralized casinos legal?
Yes, most online decentralized casinos are completely legal and legitimate. However, there are always scam sites out there. We would suggest playing at one of our recommended casinos to ensure that you enjoy a safe and legitimate DApp casino.
How do you play in a decentralized casino?
Simply click on a link over to one of our top recommended casinos, open a new account and make your deposit in the cryptocurrency of your choice (follow the instructions as given by the DApp casino). You can then start playing the games as you choose.
With 8+ years in the iGaming industry, Tomek has a wealth of experience in building and improving online casino platforms. Fascinated by the intersection of crypto technology and iGaming.
He has been involved in crypto since 2016, writing about free web (3.0), crypto (d)apps, and blockchain safety. Based in Malta, Tomek is a specialist in live casino games, one of his favorites – live roulette.More by Tomek Jedrak