Bitcoin’s Offspring Is the New Kid on the iGaming Block

For longstanding critics, bitcoin as a currency has had its day. Following its dramatic rise in 2017 to a value of $20,000 per coin, the market has been spooked in 2018. Following ad bans by Twitter and regulatory moves and security concerns, the price of a single bitcoin was as low as $8,000 by the close of March 2018.

However, while the coin itself may have had its issues of late, one thing has remained a constant: blockchain technology. Despite any misgivings financial types and general consumers may have about cryptocurrencies, everyone seems to agree that blockchains are valuable.

From RNGs to Smart Contracts

In fact, if you scan the tech headlines on any given day, you’ll probably see that one industry or another is exploring the potential uses of blockchain technology. And why not? Blockchains are a basically indestructible database that can not only store information in a more secure way but ensure everything is verified as standard.

Indeed, without all the necessary boxes being ticked, a block of data won’t be processed. Thus, when you use blockchain technology, you get a better outcome all-round and that’s something that could be making its way into casino world. Ethereum-based smart contracts are currently forming the basis of a new generation of games. However, to know where the industry may be heading, it’s important to look at where it is now.

When online casino gaming first took shape in the late nineties, developers had to recreate the random shuffles and spins live venues had mastered over several decades. To solve this problem, random number generators were used.

Today, slot machines at all of the leading Canadian online casinos will have RNGs running them. Essentially using a series of complex equations to spit out a random result, this software has formed the basis of the industry since its inception.

In fact, you can tell if a game is on the level by checking that its RNG has been certified by a third-party agency. Indeed, when you’re sizing up the latest slots, like on this great Canadian site Slot Machines, the experts will tell you to look for special features, reputation, prizes and, importantly, security and safety. As long as a game is powered by a certified RNG, it produces a fair result.

Backing Up Fair Results with Blockchain Technology

However, even though industry insiders can repeat this to customers until they’re blue in the face, they still have a hard time believing it. Because you can’t see an RNG, there’s an element of (unjustified) skepticism among some players. With an apparent gap in the market, blockchain and smart contracts could be set to fill the void. In simple terms, a smart contract takes two sides of a situation, sets out some terms and then waits until those terms are filled before the transaction is completed. Taking this, start-ups such as Better Gaming are working on slots that can issue verifiable payouts in real-time. Running on the Ethereum network, the system isn’t the only one being developed at the moment, but it does offer a new avenue for casino operators to explore.

Instead of seeing smart contracts as a replacement for RNGs, it’s more correct to say they’re the next generation of RNGs. With the industry now into its third decade, evolution is inevitable and that could mean we see more blockchain innovations integrated into the world’s largest online casino platforms.