It’s no secret that the gambling industry is riddled with problematic behaviors, especially with online casinos, with gambling-related fraud skyrocketing in the past couple of years. Because of this, many bettors find themselves unsure of whether or not they can trust their casino.
Transparency is a huge issue in the betting industry; however, the tides seem to be turning with the advent of blockchain-based casinos. Today, we’ll be looking at why casinos seem to be going over to blockchain tech, the benefits of a blockchain-based casino, and one promising casino in the field.
What Are the Benefits of a Blockchain-Based Casino?
In The Code We Trust
The first and biggest benefit of a blockchain-based casino is that they usually use open-source code. This means you can trust the casino’s games and odds because you can always simply look at the code to find out the chances of winning in a particular game.
Furthermore, if an issue occurs within the casino or with your bank and payments are disputed, all winnings are logged in the blockchain. This means complete transparency into who won, how much they won when it happened, and whether or not the winner got their funds.
They’re More Secure
With casino fraud growing, many gamblers are becoming concerned about the security of their funds on traditional platforms. Blockchain ensures secure transactions and intrinsically prevents your data from being changed or deleted. This means that all records of your winnings are permanent, protected, and unchangeable.
Gamble and Invest in the Same Spot
Some DeFi (decentralized finance) casinos operate by allowing you to invest in the house itself. This might mean staking the casino’s associated token or being a liquidity provider. In turn, you will win a small amount when the casino makes money.
Streamlined Deposits and Withdrawals
With blockchain-based casinos, you can deposit and withdraw cryptocurrencies as opposed to fiat. This is usually associated with a quicker withdrawal process and allows you to process deposits in currencies most traditional casinos don’t support.
Are DeFi Casinos Just A Fad?
There are a lot of gambling-related dAPPs (decentralized applications); however, many are still cautious about whether or not these apps are trustworthy or if they even work properly.
There are a variety of ways that you can apply blockchain technologies for gambling. For example, LunaFi is a decentralized betting protocol that allows gamblers to become the house in a way. Casino developers, liquidity providers, and gamblers can all interact through this protocol in a trustless way protected by the guarantee of a smart contract.
LunaBets is the first app ever built on the LunaFi protocol. This is a non-custodial betting application that takes advantage of LunaFi’s smart contracts and liquidity pool to ensure a safe environment where everyone is guaranteed to get their due.
These two are some of the first applications of DeFi and blockchain technologies in the gambling industry. They rely on a robust, open-source smart contract that anyone has access to and outlines how rewards are distributed, and guarantee that there are always enough tokens in the pool to pay out everyone’s winnings.
With the massive success, DeFi casinos have amassed over the last couple of years. It’s nigh-impossible to dismiss them as “just a fad.” Especially because they aren’t simply doing traditional casinos in a safer, more trustworthy way, they’re bringing in their own innovations such as…
How LunaFi and LunaBets Combine Gambling With Investing
LunaFi and LunaBets have a native utility token called $LFI. This token is the centerpiece of the LunaFi ecosystem and can only be rewarded based on your betting volume. However, by staking $LFI, you can receive $vLFI in the governance pool, which allows you to receive a commission from house pools through the treasury contract.
You can also be a liquidity provider and deposit Bitcoin/ Ethereum/ USDC into the house pools to get a share of the profits gathered from activities on the platform. This lets you be the house in a way and invest in the platform itself.
Another massive benefit of the LunaFi approach is that holders of $vLFI in the governance pool can actually vote on major decisions on the platform or proposed changes. This lets you have a first-hand influence on how the platform itself develops and vote on changes you would like to be implemented to the platform. This DAO approach is one of the things that sets LunaFi and LunaBets apart from the rest of the DeFi gambling space.
The platform also provides anonymity to its users. Anyone that’s been involved with traditional online casinos recently is familiar with all of the forms you have to fill out to gamble or make a withdrawal. This data can then be leaked or breached by malicious actors. However, most DeFi platforms, including LunaBets, don’t ask for this kind of private information.
Amidst growing gambling fraud, many casinos turn to the blockchain as a way to gain trust. Blockchain-based casinos are usually entirely transparent about their smart contract, which is used to facilitate every part of the gambling process. They also ensure your anonymity and streamline the deposit and withdrawal process.
Some casinos like LunaBets take this a step further. They allow you to make money by investing in the house, staking tokens, or being a liquidity provider. They also allow you to be included first-hand in the decision-making process of the organization. All things considered, DeFi casinos are here to stay, and we welcome the innovation and security that comes with them.