Crypto casinos on the rise, how safe is that?
Crypto casinos generally have a bad reputation, sometimes with the feeling that certain games are unfair. By means of blockchain technology, this sector wishes to be fairer and more transparent, but how reliable is that? A look behind the rise of the crypto casino.
Why do crypto casinos want to show that they are reliable?
Crypto casinos want to show that they are reliable, because there are many shady gambling sites online. By explaining all kinds of methods and even releasing parts of the programming code, they want to show that they are playing fair. By means of the blockchain, these sites can be more transparent about the algorithms that work in the background. If this turns out to be fair, in theory this could mean more visitors for the site.
How do crypto casinos want to show that they are safer?
Everyone is familiar with the statement “the house always wins”, so most casinos have an algorithm behind their games that works statistically to the advantage of the casino. That is how the casino earns its money. One of the benefits of blockchain is that it is public and transparent, which allows a casino to show to what extent they benefit from gambling. They can do this by using a smart contract functionality, such as the Ethereum platform. Many crypto casinos therefore use and accept Ethereum as a payment method. An additional advantage is that crypto currencies also generally have a faster transaction time compared to traditional methods, which can speed up the process for these casinos.
How can you check the security of a crypto casino yourself?
However, the fact that crypto casinos indicate that they want to give openness to things does not mean that you have to trust it blindly. You cannot therefore automatically assume that all crypto casinos are equally safe, Again, the well-known statement: “do your own research” applies (abbreviation: DYOR, Nb: popular statement among crypto investors). One of the options on which you can check this yourself is by looking at the SSL certificate. That is an abbreviation for ‘Secure Sockets Layer’. This technology ensures that a secure connection between two parties is established. All data sent via SSL is encrypted.
Start with the SSL certificate!
This means, for example, that you can send payment data securely, making it difficult for a third party to intercept a payment. You recognize an SSL certificate by a green lock for a URL. However, this is absolutely no guarantee that the crypto casino that you visit is actually legitimate. Everyone can buy an SSL certificate. Having such a certificate does not mean everything.
Does the casino have a license?
In addition to checking SSL certificates, it is also recommended to check whether a casino has a license. At the moment it is the case that ‘traditional’ online casinos are obliged to purchase a license to enable collaboration with an online payment system. This requires the cooperation of an external party. Casinos cannot and should not normally process payments themselves.
Which network is used
Because crypto casinos use for example the Bitcoin or Ethereum network, the need for having a license is eliminated. They do not need an external party that can process the payments. As a result, having a license has become optional, which means that there is actually no check on these casinos. This makes it even more important that a crypto casino has taken the trouble to purchase a license – especially in view of the fact that there is currently no regulation regarding online gambling with crypto. Nice additional fact, the first country that has issued a license is Curaçao.