Every year, more and more iGaming companies are using blockchain technology to open up new business opportunities and reduce costs. The embrace of cryptocurrencies has been one of the biggest recent trends in the iGaming industry. Read on to find out what changes have occurred over the past few years.
Due to the development of technology and, as a result, the release of cutting-edge platforms, the iGaming industry is overgrowing. Using blockchain to create new opportunities across platforms will allow the industry to grow even faster. Distributed ledger technology is one of the most promising solutions for bridging the gap between regulated and restricted iGaming markets, increasing efficiency, and simplifying transactions.
Blockchain technology can inspire the same user confidence as game certification. While fiat currencies are supported by the state that issues them, cryptocurrencies use a decentralized ledger with data on all transactions, which is distributed over a database with a million copies. This has several results: firstly, anyone with access to the network can verify the transaction; secondly, the history of bitcoin cannot be faked, and any attempt to falsify a transaction block will affect all blocks in the network. Players value this transparency and security.
Slotegrator was one of the first to bring crypto casinos to the market with Bitcoin Casino. At first, the only real difference between traditional online casinos and blockchain casinos was the payment solution – crypto casinos only supported deposits and withdrawals in cryptocurrencies. Due to the fact that the platform was built entirely on the blockchain, games were limited to those developed using blockchain technology.
But it became apparent that creating projects which only accept cryptocurrency is not the most profitable option, and something had to change. Within the last year and a half, top online casinos have been focusing on new technologies, particularly crypto, and supporting payment systems that allow for in-game conversion. This is helping to drive the popularization of the use of blockchain in iGaming.
Why is in-game conversion technology needed?
“Converting cryptocurrencies into fiat currencies enables any user, regardless of his exposure to blockchain technology, to make deposits and withdraw winnings in crypto,” commented Ayvar Gabidullin, Business Development Manager at Slotegrator.
Initially, the offer of games was limited by the payment method, but with the help of in-game conversion technology, this problem was solved. Conversion technology makes all the game content on the online casino site available to the user, whether they want to use fiat or cryptocurrency. The result has been the emergence of new audience segments and increased player loyalty.
Online casinos that support both fiat and cryptocurrencies are especially popular in emerging markets. For example, whereas a couple of years ago players in Asian and African markets used fiat currencies exclusively, both continents are now seeing an explosion in cryptocurrency adoption. On the other hand, not all players are comfortable with cryptocurrencies, and without conversion technology, this could become a barrier.
Slotegrator experts predict that in the near future all operators will start implementing the technology, regardless of the size of the business and their target market.
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