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It is uncommon to give credit to the gambling industry for its contributions to the development of new technologies. Consider the consequences. The sector has undergone a significant digital revolution in the last ten to fifteen years. What was once a physically located casino-controlled industry has since shifted to the realm of online gambling. We started with internet service providers, then moved on to mobile, then cryptocurrencies, and now we’re looking into the next potential step, which is decentralized gambling.
It’s a simple idea: instead of gambling in a traditional casino, individuals can do it amongst themselves by removing an intermediary, the casino. Everything can be fully supported by smart contract technology, allowing consumers to be either the player (with a lower house edge) or the banker (with guaranteed returns) (albeit small returns). It truly is a win-win situation for both parties.
As a result, if you want to learn more about the case for decentralized gambling in 2020, we strongly recommend reading our opinion post.It begins by defining decentralized gambling, then moves on to a discussion of the various problems it may solve, and finally, how it may benefit you as a player. Finally, the article focuses on how decentralized gambling can benefit you.
What does it mean for gambling to be decentralized?
In its most basic form, decentralized gaming follows the same principle as any other type of decentralized system: it eliminates the need for a middleman and instead prepares the way for transactions to take place directly between players. When it comes to value exchange, decentralized cryptocurrencies allow users to do so without the involvement of a third party. What about the activity of gambling? Players can gamble independently of other parties.
As with any decentralized system, players are eligible for a number of significant benefits as a result of this. First, consider the house edge, which is one of these benefits.
Impact on the home is reduced
If you’ve been gambling for a while, you’re probably familiar with the house edge and how it works. This is especially true if you have prior experience. If this is not the case, the house edge is the statistical advantage that the casino has over you in the long run. To be more specific, the house edge is a variable that changes depending on the game you are currently playing. This variable contributes to the long-term profitability of the casino in question.
Consider the game of roulette. If you were to play European roulette, the numbers on the wheel would range from 1 to 36, with a single green zero. This means that the roulette wheel will come to rest on one of the 37 possible outcomes at some point during the game. If you place an outside bet of $100 on red, you will be given odds of “2.0,” and those odds will apply to your wager. This means that you must land on the color red in order to double your money. You will be considered to have lost the game if you do not land on the color red.
Although the odds presented to you are based on a 50/50 split, the probability of the ball landing on red is not evenly split between the two options. This is because the value 0 in the green column must also be considered. Because there are 16 red numbers out of a total of 37 numbers, the casino has a 2.6 percent house edge, which means they have an advantage over the player. Due to the game’s use of two green zeros, which results in a 5.2 percent higher house edge, the odds of winning in American roulette are significantly worse for players than they are in European roulette.
Do you believe that, given the potential rewards, this is a worthwhile investment for the player? Our opinion is that it does not. However, we would argue that the casino must have some sort of house edge in order to stay in business. There would be no reason for the casino to exist if there was no house edge.
Having said that, casino games could have a lower “house edge” if they were played on a decentralized gambling platform powered by a highly reliable algorithm. Because the algorithm is supported by software, the smart contract can virtually mandate any house edge it deems appropriate. This brings us to the next stage in the process of creating an entirely new aspect of online gambling: playing the banker.
Do you want to work in banking?
If I told you that you could make a guaranteed 1% profit per month by simply storing some of your cryptocurrencies, you’d probably think I was running a Ponzi scheme like Bitconnect or OneCoin. If I told you that by simply storing some of your cryptocurrencies, you could make a guaranteed profit of 1% per month. Please do not be concerned; this is not the case. Decentralized gambling, on the other hand, I believe has the potential to open the door to long-term, guaranteed earnings.
If we go over the house edge again, you’ll recall that it ensures that the casino in question will make a guaranteed profit over the course of the game’s long-term play. Even though both the player and the casino will have winning and losing streaks, the player will never be able to catch up to the casino over a long enough period of time. This is the essence of how the house advantage works.
Decentralized gambling, on the other hand, takes control away from centralized casinos and places it in the hands of regular players. This provides players with greater freedom and flexibility. Consider the following scenario: you are playing European roulette in the context of a decentralized online casino. When playing at their establishment, you would normally expect the casino to have a house edge of 2.6 percent. Even if this isn’t the ideal scenario, it’s how the game is played. However, how would you feel if the smart contract that powered the decentralized gaming site you chose reduced the house edge to 1%? You’d be overjoyed, wouldn’t you say? Without a doubt!
Now consider my example from a different perspective. How would you feel if the one percent “house edge” was collected by regular people playing the game rather than a large casino chain? This is precisely the type of thing that decentralized gaming could enable. This topic will be discussed in greater detail in the following paragraph.