The online gambling market has been one of the primary beneficiaries of the Covid pandemic. According to a report by Fortune Business Insights, this market generated $66.72 billion in 2020 as the industry experienced a positive demand shock globally. While adoption has played a significant role in the rise of online gambling, nascent technologies such as blockchain and cryptocurrencies are setting the stage for a new gaming ecosystem.
Bitcoin may have started as a digital currency, but the underlying blockchain technology has created many possibilities to integrate traditional industries with the digital ecosystem. Online gambling is one of the most prosperous areas where blockchain technology appears to be changing the game. Blockchain networks have introduced provably fair environments that allow gamers and service operators to verify the legitimacy of a betting outcome.
Unlike traditional casinos, blockchain gaming eliminates the need for third-party verification. Instead, most of the online casinos built on blockchain ecosystems have adopted a provably fair algorithm. This algorithm leverages blockchain technology to enable verifiability and enhance the level of randomization in online games.
The Game-Changer in Crypto Gambling
Just as the name suggests, provably fair means that the odds and outcome of a bet can be verified on-chain; ideally, blockchain networks record transactions on-chain, making them verifiable and hard to manipulate. Both online gamers and the service operators can see the transactions and payouts recorded on the public ledger.
For online gaming, a provably fair environment means more transparency, security, and trustworthiness. This is because blockchain gaming environments will verify the odds or outcome through code, unlike traditional counterpart casinos where humans do the verification.
Traditional casinos are especially popular for rigging, given that third parties can be biased or corrupt to favor the house or a big client. Even worse, there is no way to prove that a particular bet may have been rigged.
The provably fair algorithm eliminates this pain by preventing manipulation through encrypted server keys. These encrypted server keys prevent service operators and players from calculating or changing the outcome of a bet. Each party has its own encrypted key that it can use to verify the odds and outcome of a specific bet as recorded on the public ledger.
Technically, this algorithm has changed crypto gambling by creating a level playing field for every participant. The encrypted keys issued to the participants generate random results that cannot be manipulated hence a provably fair gaming ecosystem.
The Provably Fair Algorithm in Action
Having stated the value proposition of the provably fair algorithm, it is noteworthy that some online gambling platforms are quite ahead and feature several provably fair games. One such ecosystem is FortuneJack, a crypto gambling site founded back in 2014 when Bitcoin was still a foreign concept to many.
The FortuneJack casino leverages the provably fair algorithm to offer secure and trustworthy online gambling services. Some of the provably fair gaming categories featured on this platform include orbital, steady games, and randomly fair games. Notably, FortuneJack allows players to initiate bets with different crypto assets, including Bitcoin.
Other than its online gaming suite, the FortuneJack casino features bonus and deposit incentives. These incentives can be in the form of free spins or deposit bonuses. In addition, players have the opportunity to grow their loyalty levels, increasing their chances of getting constant cashback and reload bonuses.
Why Provably Fair Games are the Future of Online Gambling
The online gambling industry is projected to grow at a CAGR of 11.4% between 2021 and 2028, totaling $158.20 billion. For this growth to be a reality, stakeholders in the online gambling industry will have to prepare for its mainstream adoption. Luckily, blockchain technology is already solving some of the long-existing challenges in online gambling.
The emergence of provably fair games is an excellent example of how public ledgers define the paradigm shift in online gambling. Going by the trends, it is likely that more online gambling innovations will consider blockchain as means of building fair gaming environments. Furthermore, this technology also eliminates third-party verification costs.
That being the case, provable fairness will be one of the building fundamentals of all online games. Game developers pivoting to blockchain are tirelessly building fair gaming environments, not just for gambling but other niches such as combat and virtual reality.
Blockchain technology may have become famous for supporting digital currencies, but its potential extends across many industries. The online gambling industry is just one of the examples that are being transformed by blockchain. Other sectors, including logistics and healthcare, are also at the forefront of integrating this technology. With such a value proposition, it is only fair to predict so much about the future of today’s industries.