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Get a deeper understanding of how crypto casinos and their blockchains work on a technical level as well as how the software impacts your online crypto casino gambling. Go in and out of the blockchain and look at the hidden pitfalls of crypto from both a bettor and casino operator’s perspective. Learn all this and more in this quick insight from the minds behind crypto casinos with KT11.
Online casinos love to label themselves as crypto casinos or Bitcoin casinos, especially whenever Bitcoin or another major cryptocurrency starts to gain popularity or value. The allure of permanently saving game results on the blockchain or making instant deposit/withdrawal transfers is something that neither bookmakers nor operators can resist. However, very few people know how crypto and its associated blockchains actually work, and even fewer ask themselves: How can I maximize the technology behind crypto?
Understanding Crypto
A pedantic programmer would refer to crypto as a cryptographically secure currency, because it is a currency that works on the principles of cryptography to secure transactions, create new units, and verify the transfer of assets. Let’s look at its main components and see, in layman’s terms, how they affect your online casino gambling:
- Blockchain – You can think of blockchain as a decentralized and distributed ledger. The latter is built like a chain, with each block containing a list of transactions and other data. The nature of these transactions and bundles, being together and linked to form a chain, makes it impossible to change what is written on the blockchain. If your casino saves game results in the blockchain, it cannot change the submitted results because it would have to break the entire chain and recalculate the hash values of each block to change a link. The latter is completely impossible.
- Decentralization – Governments and financial institutions do not influence or have any oversight of cryptocurrencies. All transactions are verified and recorded by a decentralized network of computers spread around the world. What this means for you is that your forwarded data cannot end up in the hands of your local government.
- Cryptographic keys – Every crypto transaction is based on a pair of cryptographic keys, a public and a private key. You can think of the public key as your bank account number and the private key as your bank account password.
- Transactions – Transferring funds between accounts, including your account and your online casino, involves the public keys of the sender and recipient. Each transaction is also broadcast on the network, so it cannot be hidden.
- Verification – Transactions must be verified and validated by a decentralized network of computers (nodes), a process often called “mining.” Mining results in blocks, which are permanently added to the blockchain. This process is behind all your casino transfers and crypto casino game results.
- Consensus mechanism – The exact consensus mechanism used by a network of computers (nodes) depends on the implementation, the most common being Proof of Work (PoW), Proof of Stake (PoS), Delegated Proof of Stake (DPoS), and Proof of Authority (PoA).
- Wallets – Cryptocurrency wallets can be software-based or hardware-based. The first is the typical online crypto wallet that you can often open for free at online crypto brokers. Crypto wallets are completely anonymous, and their transactions are not sent to government agencies. However, you are legally required to forward accurate details of your assets to the relevant tax agencies, and using a crypto wallet for tax fraud is a serious legal offence.
Now that you understand the technical details behind online crypto casinos and their operation, it’s time to look at how you can use these to your advantage. Let’s start with the most obvious use: deciding where you’ll gamble your crypto.
Choosing the Right Crypto Casino
Choosing an online crypto casino is hard because of how often crypto is used for scams and how many online crypto casinos there are. The fact that transactions are decentralized and anonymous is fantastic for keeping gambling anonymous, but it is also preferred by shady individuals who want to hide their tracks. Therefore, it is not uncommon for scam crypto casinos to emerge. These may look exactly like the real McCoy, some may even copy real online casinos and their URLs to the T. Although the URL may not be exact, it may look exactly the same, which is often achieved by using Cyrillic letters, such as Cyrillic A, rather than Latin letters, such as Latin A. Therefore, we recommend that you only join ranked and reviewed online crypto casinos, like the ones we recommend.
Playing at a crypto casino
When you find the right online crypto casino for your gambling adventures, all you need to do is open an account and make a deposit. Making a deposit is very simple as all you need to do is use the blockchain address of your casino account. The latter should be copied to your crypto wallet, where you can make the transfer. Withdrawals are made in exactly the same way.
The crypto you deposit is used as any other currency, with the option to wager different amounts depending on the game in question. This is where things get particularly interesting, as crypto casinos boast extensive game libraries.
Playing crypto games
Crypto casinos are full of innovation, which is evident in their game selection. In a crypto setting you can not only enjoy classic casino games like slots, blackjack, poker and roulette, but you can also participate in the crash and instant win games that have become a staple of the crypto gambling world. These, as well as a variety of live and game show crypto titles, can be enjoyed at KT11 casino that have been ranked and reviewed by industry experts.
