Crypto 101: understanding Bitcoin, its functionality, and its allure.
As Bitcoin's popularity soared, crypto gambling quickly attracted a broader audience, signalling the beginning of a new era. Currently, over 25% of all bets on SOFTSWISS-powered platforms are placed using cryptocurrencies. Bitcoin is the top choice, accounting for 76.5% of all crypto bets, followed by Ethereum at 8.4% and Litecoin at 5.1%.
In this article, we will explore Bitcoin casinos, how they work, how they differ from their traditional counterparts, and what to consider when choosing a software provider.
RELATED ARTICLE
What is Bitcoin?
How Bitcoin Casinos Operate
Bitcoin casinos are online gambling hubs that utilise Bitcoin (BTC) and other cryptocurrencies for deposits, wagers, and withdrawals.
Technically, they operate in much the same way as fiat ones. Players create an account, deposit Bitcoin into their casino wallet, and use it to place bets on various games such as slots, poker, blackjack, and roulette. Transactions are processed almost instantly and players can withdraw their winnings in Bitcoin, which can then be converted to fiat currency if desired.
The decentralised nature of cryptocurrencies allows operators to have full control over their finances, sidestepping traditional financial intermediaries like banks and payment processors. This direct control translates to greater financial autonomy, flexibility, and margin.
Differences Between Bitcoin and Traditional Casinos
By harnessing the power of blockchain technology, Bitcoin casinos offer enhanced privacy, as they require less personal information from players. They also provide greater security, speed, and often more favourable financial terms compared to traditional casinos.
| Crypto | Traditional | |
|---|---|---|
| Speed | Blockchain transactions are processed within minutes. | Can take several days for withdrawals. |
| Fees | Reduced fees as there are no intermediaries involved. | Higher fees due to the involvement of banks and processors. |
| Security | Immutable blockchain ledger reduces fraud risk. ‘Provably fair’ systems prove games are not manipulated. | Weaknesses in IT infrastructure can lead to hacking, data breaches, and manipulation of game outcomes. |
| Privacy | Anonymous transactions without personal information. | Requires extensive personal and financial details for compliance. |
| Reach | Not bound by geographical borders or local banking systems. | Faces regional restrictions and currency exchange issues. |
| Time-to-market | Generally faster due to streamlined processes and lower infrastructure needs. | Generally longer due to regulatory and financial setup complexities. |
RELATED ARTICLE
Advantages and Disadvantages of Using Bitcoin to Gamble in 2024
Legal Aspects of Bitcoin Casinos
While Bitcoin casinos bring a host of benefits, navigating the intricate and varied legal landscape — different in every jurisdiction — adds a twist of complexity to the mix. While some countries welcome cryptocurrency gambling with open arms, others impose strict regulations or outright bans.
The lack of a homogeneous stance on Bitcoin gambling can be both an advantage and a challenge. On one hand, it allows Bitcoin casinos to operate with greater flexibility and innovation without being hindered by extensive regulatory requirements.
Conversely, the ambiguous regulatory environment can create uncertainties regarding legality and compliance, potentially exposing operators and players to legal risks.
RELATED ARTICLE
Is Bitcoin Gambling Legal?
Discover the intricate world of crypto gambling and its legal status across various jurisdictions.
What is Bitcoin Casino Software?
Bitcoin casino software, now more broadly referred to as crypto casino software, stands for sophisticated technological platforms that handle all aspects of crypto casino operations. These platforms are versatile, supporting not just Bitcoin but also a variety of other digital currencies based on their popularity and the needs of the operator.
A typical crypto casino software package, like the SOFTSWISS Crypto Casino Solution, offers an integrated suite of products and features designed to support the entire online gambling ecosystem. This includes payment gateways, crypto-compatible games, strong security protocols, comprehensive technical support, analytics and affiliate marketing tools.
RELATED ARTICLE
7 Things that Make a Great Online Casino
Uncover the attributes that distinguish superior online casinos, including user experience, game variety, and payments, vital for both players and operators.
Security and Fairness in Bitcoin Casinos
Bitcoin casinos have earned a reputation for their robust security and commitment to fairness, which is now a strong competitive advantage. Here is how this is achieved:
Blockchain Technology
The decentralised digital ledger technology records transactions in a way that prevents alterations. Each verified transaction is grouped into blocks and linked together to form a chain. Changing a single transaction would require altering all subsequent blocks and obtaining the consensus of the entire network, making tampering virtually impossible.
Encryption
While blockchain ensures the integrity and transparency of transactions within the casino, encryption technologies like SSL (Secure Socket Layer) are applied to protect the privacy and security of data during transmission.
For operators, this means fewer chargebacks and disputes, resulting in greater financial stability and liquidity.
Cold Storage
The majority of a casino’s Bitcoin holdings are stored in cold storage, meaning they are kept offline. This significantly reduces the risk of hacking and theft, as cold storage wallets are not accessible via the Internet.
Provably Fair Gaming
The Provably Fair (PF) technology is based on cryptography, allowing operators to prove that their game outcomes are fair and not manipulated. By offering provably fair games, Bitcoin casinos significantly enhance their credibility, fostering trust and loyalty among players.
RELATED ARTICLE
Understanding ‘Provably Fair’ in iGaming
Gain insights into 'Provably Fair' technology in iGaming, understanding how it ensures game integrity and builds player trust.
How to Choose a Bitcoin Casino Software Provider
Considering launching a crypto gambling business? Here are key factors to consider when choosing a software provider:
- Reputation and Experience: Select a provider with a solid reputation and extensive experience.
- Security and Compliance: Ensure the provider uses advanced security measures and complies with relevant regulations. Incorporating provably fair gaming systems is essential for building trust and ensuring transparency.
- Range of Cryptocurrencies Supported: A robust provider should support multiple cryptocurrencies, not just Bitcoin, to appeal to a wider audience.
- Quality and Variety of Games: Select a provider that offers a diverse range of high-quality crypto-friendly games to enhance the player experience.
- Integration and Customisation: Choose a provider that offers seamless internal and external integration and high customisation options.
- Customer Support: Opt for a provider with reliable 24/7 customer support through various channels.
- Technological Advancements: Ensure the provider leverages the latest technologies and offers mobile compatibility.
RELATED ARTICLE
How to Start a Crypto Casino in 2024
Learn about the key aspects of launching a crypto casino, covering market trends and legal requirements.
For operators seeking to launch an online casino project, SOFTSWISS offers a number of comprehensive solutions tailored to meet different needs. The pre-licensed, ready-to-operate White Label Casino Solution enables quick establishment without the need for a gaming licence, ideal for those focusing on marketing and brand development.
Alternatively, the Turnkey Standalone Solution gives already-licensed operators full control over operations and branding, providing all necessary software and services for complete customisation.
Both solutions ensure a seamless and efficient launch with SOFTSWISS' expert support.
RELATED ARTICLE
White Label vs Standalone Casino
Confused between going all-in with an out-of-the-box solution (White Label) or operating under your own license (Turnkey)? Discover the answer in this article.
Final Thoughts
The role of Bitcoin casino software in creating versatile crypto casino solutions has changed the iGaming industry forever. Focusing on security, efficiency, and innovation, these solutions empower operators to embrace cryptocurrencies, offering benefits such as reduced fraud risk, lower fees, and faster transactions.
As cryptocurrencies gain wider acceptance, these platforms will likely become even more integral to the iGaming industry. Businesses that adopt Bitcoin casinos early can capitalise on emerging opportunities and set themselves apart in the competitive market.
