Did you know what is one of the first industries where cryptocurrencies were used? It was online gambling! Long before you started shopping with them, you could use Bitcoin and other cryptos to play casino games. This is not just a simple currency change — the use of cryptos for gambling offers the potential to change this industry completely because of its technological features. In other words, you can do much more with them than just claiming the Vulkan Bet deposit bonus. Below, we will take a look at the history of crypto gambling and briefly talk about what awaits us soon.
First Examples of Crypto Casinos
The first examples of crypto casinos appeared in late 2011 – early 2012. These were simple websites that did not feature traditional casino games and had a few titles that could only be played with crypto. For example, SatoshiDice, which opened in 2012, included only one game you can play with BTC: dice. You were rolling a dice and betting that the outcome will be above or below a certain number. Although it was a simple game with nothing but a text-based interface, it supported multiplayer and offered features that were not very common at that time, such as probability calculations and statistical information.
For a couple of years, crypto casinos continued to feature simple games of this type (dice, heads or tails, minesweeper, etc.) and it became clear that they couldn’t offer more than that unless there were studios that developed games just for them. In this period, they were quite niche options because they had games that would not appeal to the majority of the player community and did not support fiat currencies. In other words, you couldn’t pay with your credit card, e-wallet, or bank account. They also did not have promotions associated with online casinos, such as bonuses. However, they were provably fair, their house edge was below 1%, and it was possible to play completely anonymously. You didn’t have to share any personal information with the casino. The same was true for the casino management — the players did not know who the owners of the site were, as there was no agency to license such websites. In other words, the first generation of crypto gambling was a “rogue” operation.
Hybrid Casinos Appear
In 2014, crypto casinos emerged that could be described as “hybrids.” They were designed as a traditional online casino but also supported cryptocurrencies, so they offered the best of both worlds. However, BTC and other cryptos are only supported as a currency; features such as provably fair, low house edge and anonymous gameplay were not available. Although this was a disadvantage, second-generation gaming platforms have expanded the use of BTC in the online gambling industry. Because it provided security & privacy as a payment method and can be used more comfortably since it can work independently from the banking system.
Opened in 2014, Bitcasino was one of the first examples of hybrid casinos and was the first crypto casino to get a license. Currently, most of the results you’ll find when you search for “crypto casino” will still be hybrid operations. They support cryptocurrencies but not the other features that come with them. In exchange, you gain benefits such as playing at a licensed casino, enjoying bonuses, and accessing a much larger game collection. In other words, the history of crypto casinos has not changed much since 2014. Second-generation hybrids still exist and have the largest share of the market. But that could change completely soon, as third-generation crypto casinos offer impressive features to make a real revolution.
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Third-Generation Crypto Casinos
We’ve seen examples of casinos of this generation over the last few years, but they haven’t attracted much attention as they have been able to appeal to a limited audience. This is because they run entirely on the blockchain and work with second-generation cryptocurrencies such as Ethereum that support smart contracts. To put it simply, the blockchains of modern cryptos like Ethereum are powerful enough to run complex applications (e.g., slot machines and card games) and also feature smart contracts, meaning that when an action occurs, they can automatically complete another action.
The best example of this is winning in casino games. As soon as the win occurs, the smart contract pays automatically via the blockchain. There is no need for a person to check and approve their withdrawal request. What’s more, you have access to all casino games, and they all benefit from the provably fair feature. The blockchain itself checks how fair the games are. You can play anonymously and always have access to the casino site, as these platforms also do not have a central server, they work in a distributed manner on the blockchain.
Third-generation crypto casinos will offer much fairer games with a near-zero house edge. It doesn’t matter what country you are in to join them — they have the potential to revolutionize the online gambling industry!
