Online gambling has grown into a multi-billion-dollar industry. However, for online operators such as Vegastars online casino, concerns around fairness, payment security, and operator transparency continue to play a significant role in shaping player trust. Many users wonder whether games are genuinely random, withdrawals are handled fairly, or operators manipulate outcomes behind closed systems.

However, fears are being slowly allayed through the implementation of blockchain technology. Online casino platforms such as Vegastars and other operators that have cryptocurrency integrated into them are benefiting from blockchain technology and systems that allow players to independently verify transactions, gaming outcomes, and payout records. Instead of relying solely on trust, users can now rely on transparent technology. 

Whereas the digital currency is not universally recognised by all online casinos, the currency of trust is one that every individual player trades in and one that Vegastars and other operators must earn to be successful. With the exchange of real money across a wide range of casino classics, transparency is crucial in building that trust with users and blockchain is playing an increasingly larger role in helping online casinos like Vegastars achieve that.

Source: https://crypto.com/de/university/what-is-blockchain-consensus

Alt text: Image displaying a visualisation of how blockchain technology works with multiple blocks interlinked with each other in a digital ledger.

The Importance of Transparency

Despite the growth of the online casino industry, there are still question marks over how certain processes operate and above all, how fair and secure they are. These include processes that are integral to the overall online casino experience such as the following:

• The functionality of online casino games

• The fairness of online casino games and the uncertainty around Random Number Generators (RNG)

• The ability or inability to track and trace financial transactions

• Financial disputes involving bonuses or withdrawals

For operators such as Vegastars, the digital era has posed multiple new challenges due to the number of online processes involved in the running of all aspects that make up an online casino. Players are equally concerned by the lack of visibility in the online realm. But the emphasis falls on operators to provide players with reassurance that their transactions are being securely and efficiently executed, their personal data is encrypted, and that they are not being cheated on online casino games. This is where blockchain technology comes into play.

What Role does Blockchain play in Online Gambling?

Firstly, for those that are unaware, it is important to first establish what blockchain is. This will then provide a better connection to what the technology does for online casinos. 

What is Blockchain?

Blockchain is a decentralized digital ledger that records transactions across multiple computers. Instead of one company controlling all data, information is distributed across a network. In removing the centralised banking authority, which many other payment methods on online casinos rely on, the ledger of transactions becomes more transparent and individual entries can be tracked better.

Each transmission of data receives a timestamp and permanent record, which makes it harder to manipulate any information or data. This is critical in keeping this information secure and prevents online hackers from stealing people’s personal or financial information. Due to its characteristics, blockchain technology is being implemented in many other industries, not just in iGaming and platforms like Vegastars. For example, the medical and educational institutions use blockchain ledgers to store large amounts of data to then be in the position to easily access it when required.

How is Blockchain Used on Online Casino Platforms?

Although the process is invisible, as with many online processes in the digital era, players can gain greater trust from the application with the greater levels of transparency promoting improved user confidence in online casino platforms. With the emergence of cryptocurrency as a payment method on these platforms, the influence of blockchain technology is taking on greater significance. Vegastars is one such casino that has integrated cryptocurrency into its operation, extending the benefits that blockchain technology provides.

However, cryptocurrency is just one avenue where blockchain tech plays a telling role. In fact, levels of transparency are not solely required for financial transactions, but for many other elements that make up the essence of online casino play. One of those is fair game play. Fair gaming is something many players assume exists without really knowing how it is maintained. 

On platforms like Vegastars that have a wide variety of games including the recently introduced live casino collection, the role of blockchain in creating fairness is paramount. But how does it ensure this? To explain this, it is worth introducing the provably fair concept.

Provably Fair Gaming 

One of blockchain gambling’s biggest innovations for online casino game play is the concept of provably fair gaming.

Traditional online casino games rely on internal Random Number Generators (RNG) systems that players cannot independently verify. Blockchain casinos often use cryptographic algorithms that allow users to confirm game results themselves to give players an overview of the whole working process and how online casino games arrive at the results and outcomes they come to.

A provably fair system typically includes the following:

1. Server Seed generated by the online casino.

2. Client Seed generated by the player.

3. Cryptographic hash.

4. The game outcome that can be verified.

According to an IBM report into the features of blockchain technology, the recording of the data in a shared ledger means there is evident proof of the fixed outcome, which neither party can change or tamper for their benefit. Should a player want to review each step of the gaming process up to the point of the outcome, each cryptographic hash can be revealed. 

To check the fairness, these values can be input into the hashing algorithm to ensure that the hash for the outcome is correct. The hash factors of the equation are designed to produce a trail that can be followed and matched all the way to the result. If this is not the case, then that operator should not be trusted.

Source: https://cryptonews.net/news/bitcoin/32636670/

Alt text: Image of Bitcoin symbol positioned in the middle of connected blocks designed to represent blockchain technology

Transparency in Payment Transactions

It was touched on earlier, but the involvement of real money automatically raises the stakes for any player at Vegastars or any other online casino. While blockchain technology cannot necessarily help with responsible gambling, which we will come onto later, it provides the same transparency as seen in provably fair algorithms. 

But instead of processes that contribute to a round outcome being unveiled, each step of a digital financial transaction is logged as a block and added to the permanent ledger. Blockchain is typically involved in digital transactions including e-wallets and the increasingly popular cryptocurrency. 

And as a result of its digital DNA, there are other benefits that emanate from the decentralised nature of the technology. Advantages associated with blockchain transactions include much faster transaction times and lower fees. This is beneficial for online casinos such as Vegastars that welcome cryptocurrency customers onto its virtual gaming floor and could lead to players moving away from the more traditional debit and credit card payment methods that involve a bank or third party to mediate a transaction.

The use of cryptocurrency especially in recent years has promoted the identity of blockchain technology. As a digital currency that operates exclusively in the online world, cryptocurrency is fast emerging as the future of finance, according to the World Economic Forum in a study on the American views on the prospects of cryptocurrency.

There are already plenty of examples of cryptocurrencies such as Bitcoin and Ethereum in use in modern-day society. In trading, blockchain.com recently introduced perpetual futures to its non-custodial DeFi wallet to allow users to use their Bitcoin balances to trade crypto derivatives. Elsewhere, more standardised use of cryptocurrency in everyday e-commerce purchases are becoming more frequent. 

But whatever the use, the accessible nature of blockchain transactions means there is an additional layer of transparency and trust attached to digital transactions. Compared to traditional online casinos, blockchain technology does provide different benefits. As the digital revolution continues, those advantages might become more apparent. 

Especially if transparency continues to foster greater trust, a view shared by Travor Henry, CO-CEO at EqoFlow Technologies, Inc. He said to BlockTelegraph on the topic of blockchains promoting financial transparency, 

“I think that this has massive potential for innovation: social platforms, creator economies, and even public institutions can adopt similar transparent frameworks to eliminate fraud, prevent financial manipulation, and build trust with users.”

With blockchain casinos slowly emerging to rival traditional online casinos, here is a mini breakdown of how they can differ under certain parameters that have been brought up in this article:

The Future of Blockchain in Online Gambling

Blockchain adoption within online gambling continues to expand as players demand greater accountability and faster digital transactions.

As the digital movement gathers more speed, blockchain transparency could become a standard expectation rather than a niche feature. With cryptocurrency already available as a payment method, online casinos such as Vegastars are already demonstrating the power of blockchain.

Responsible Gambling Notice

Online gambling should always be approached responsibly. Always gamble within your means and never chase losses. If gambling stops being enjoyable or begins affecting your finances, relationships, or mental wellbeing, seek support from professional responsible gambling organisations.

The following resource can provide professional support:

• Gambling Therapy 🡪 www.gamblingtherapy.org

Remember! Gambling can be addictive. 18+. Please play responsibly.

Writer Bio:

James T.

James has been writing on the iGaming industry for over five years and through his work, has kept up to date with the latest developments and innovations emerging out of the industry. With the landscape of the iGaming world constantly shifting, the pure aim is to keep readers as informed as possible about new topics and arrivals within the industry.