As the rise of bitcoin continues to transform the way we understand and interact with virtual currencies, our eyes are gradually turning towards its young siblings – Altcoins. These are cryptocurrencies that piggyback on the blockchain of Bitcoin and seek to create new opportunities and experiences for users, businesses, and consumers alike. And the world of online gambling is no exception.
Gambling has always been at the vanguard of technological innovation. From the earliest days of online casinos in the mid-1990s to the proliferation of poker rooms at the start of the new millennium, through to the current rise of eSports betting and virtual reality gaming. Technological innovation has been a constant companion to the development of online gaming. One such territory under increasing scrutiny is the use of cryptocurrencies, like Bitcoin, Ethereum, Dogecoin, and others, in online gambling.
Altcoins: More than Just Bitcoin
For the uninitiated, ‘altcoins’ is the term given to all cryptocurrencies that are not Bitcoin. These alternatives to Bitcoin can broadly be classified into two categories. The first are coins such as Ethereum, Litecoin, and others which have their blockchains and stand as separate entities from Bitcoin. The other set of altcoins are those that piggyback on Bitcoin’s blockchain and seek to enhance or modify the original Bitcoin code to provide added functionalities.
“Even though most people gravitate towards Bitcoin, altcoins are rapidly gaining momentum, especially in industries that appreciate privacy and anonymity, like online gambling,” said Lucas Mendieta, CEO of Coin4Fun, a cryptocurrency-based online casino. “Altcoins offer a substantial level of anonymity compared to Bitcoin, and this greatly appeals to online gamblers.”
Portability, speed, and privacy are three key factors players prioritize in an online gambling platform. “Altcoins achieve all these with ignominy and provide a seamless gambling experience,” Neil Erenreich, head of 888 Tron, a Tron-based casino, opined. “Instead of using credit cards, wire transfers that require a lot of personal information and time, altcoins have emerged as a boon for those who prefer speed, anonymity, and efficiency.”
But how are altcoins changing the landscape for online gamblers?
Anonymity Par Excellence
An increasing number of gamblers appreciate the level of anonymity that cryptocurrencies provide. “For privacy-focused players, Bitcoin transactions are far too public,” said Erenreich. “Every single Bitcoin transaction is permanently recorded on the public ledger, known as the blockchain.” This means if someone knows your Bitcoin wallet address, they can trace all transactions made with this wallet.
This is where the advent of privacy-focused altcoins, like Monero and Zcash, are making significant waves. Both these altcoins use advanced cryptographic techniques to ensure the details of every transaction, including the sender’s address, recipient’s address, and the amount being transacted are kept completely private. Using these altcoins, players can bet online in complete privacy without worrying about their transactions being traced.
“In the world of online gambling where privacy matters a lot, using privacy-focused altcoins are incredible,” shared Lucas Mendieta. “We have seen a significant rise in the number of players using these altcoins in our platform in the past few months.”
Coupling Speed with Efficiency
Another critical area where altcoins are making a mark is in transaction speed. Bitcoin, often lauded as the ‘King of Crypto,’ unfortunately, has an Achilles’ heel – transaction speed. A single Bitcoin transaction can take anywhere from ten minutes to several hours to be processed, depending upon network congestion.
“Many altcoins create blocks much faster than Bitcoin, enabling quicker confirmation of transactions,” said Janine Hightower, CEO of Bitcoin Gaming, an online gambling platform that accepts over 20 cryptocurrencies. “Some altcoins like Ethereum, Litecoin, and specifically designed gaming coins like FunFair, offer lightning-quick transaction times that make them perfect for online gambling.”
“Altcoins provide a unique opportunity for online gamers to deposit funds, play, win, and withdraw their winnings all within a matter of minutes,” added Hightower.
Many online gambling platforms, including Bitcoin Gaming and 888 Tron, now accept multiple altcoins to cater to the growing demand of players wanting to use other cryptocurrencies for their operations.
Altcoins: The Future of Online Gambling?
Experts believe that the use of altcoins in online gambling is about to explode as more and more cryptocurrencies emerge with advanced features, functionalities, and specifically cater to the gaming industry. On the other hand, privacy concerns, transaction speeds, and a penchant for better, more seamless gaming experiences are pushing players towards these new age cryptocurrencies.
“Online gambling is early in its transition towards cryptocurrency payments, and there is a vast ocean of opportunities for altcoins to cater,” said Erenreich. “As technology evolves and more players prefer privacy, speed, and efficiency in their transactions, altcoins would notably be the preferred choice in the burgeoning world of online gambling.”
While Bitcoin continues to be the poster child of the decentralized world, altcoins are carving a niche for themselves in various industries, and online gambling is no different. As we progress further into the age of decentralization, it would be interesting to see how altcoins shape the future of the online gambling industry.
Sources:
Lucas Mendieta, Coin4Fun
Neil Erenreich, 888 Tron
Janine Hightower, Bitcoin Gaming
