Public Ledger’s Transparency Yields Mixed Effects for Bitcoin Casinos

Mar 09, 2015
Blockchain

Blockchain

The essence of the blockchain is for everyone to oversee every single transaction within the Bitcoin network, thereby creating a system that provides transparency. By this, it means that even the betting transactions made on the Bitcoin casino market, regardless of the size of the wager, are available for anyone’s eyes to see.

A quick visit on Blockchain.info’s block explorer reveals the list of Bitcoin transactions updated in real-time. Most often than not, it is likely for anyone to catch a few bets placed in popular casinos and gambling sites like SatoshiBONES and LuckyBit, along with other Bitcoin mining platforms.

However, this transparency can work for and against these online businesses, and this is a fact businesses in the Bitcoin ecosystem must accept.

  1. More presence on the ledger means more activity. If a Bitcoin casino appears repeatedly on the blockchain, either receiving or sending bitcoins, this means that it actually receives attention, traffic, and following from a number of players who can be coming from different parts of the world. Popularity is one of the key factors of success, and being popular is related to the frequency of Bitcoin transactions between the operator and its players.SatoshiBONES
  2. Listed Bitcoin casinos make tracking of transactions easier. While it is unlikely for any player to track on a regular day with no reason at all every transaction to and from the wallet address of the casino, this proves to be useful, especially at times of scam allegations. The final destination of the suspected stolen bitcoins can be traced, and this is all because of the transparency provided by the public ledger.
  3. Too much transparency opens for possible threats. No matter how great the technology is, it can still be used for illicit activities when used by ill-motived individuals or organizations. In this context, hackers may illegally access the hot wallet of a listed betting site and steal the funds of the players. This should be of primary concern since compromised wallets are one of the reasons mostly used by operators to justify a site’s unprecedented exit from the market.
  4. Online gambling emphasizes strong presence in Bitcoin economy. Nothing can deny that players enjoy betting on the Bitcoin casino games, which explains how this industry is recognized as a strong player in the growth of the Bitcoin economy. This presence on the blockchain only stresses its unceasing role in the success of the cryptocurrency.

The transparency exuded by the public ledger may put a Bitcoin casino or gambling site in danger when its name is shown, but it also presents the image of the Bitcoin casino market as a dynamic business that not only provide players with entertainment and operators with profits, but also as among those that lead the campaign for Bitcoin to be in the mainstream.