It has been several years in the making but it is safe to say that cryptocurrency has become firmly embedded in the gambling world. Bitcoin betting, for example, is much more mainstream and Geoff Kukard says there are hundreds of sites dedicated to letting consumers play with their favourite token.
Now, the ever-evolving world of gambling is eyeing a new application of blockchain technology, this time in the form of GamebleFi. While it is much newer on the scene, it is generating significant buzz within and outside of crypto circles and in this article, we break it down.
What is GambleFi
First things first, it is important to understand what exactly GambleFi is. Just like DeFi refers to decentralized finance, GambleFi refers to decentralised gambling that is powered by blockchain technology.
Typically, when you use a casino, you create an account and provide personal details like your name, email address, and government ID. You also deposit your funds into the casino with the expectation that they will be kept securely and released back to you if you request it.
GambleFi works differently in that you do not need to open a ‘traditional’ account to get started. Instead, you connect your crypto wallet to the casino and play anonymously. Tokens are deposited and withdrawn automatically when needed using smart contracts. You can also invest in liquidity pools. By committing tokens to the liquidity pool of the casino, you can earn interest on your investment.
Benefits of GambleFi
GambleFi is fast becoming more hyped in the gambling world because it offers the following benefits to users
Privacy
These days, privacy is a major issue for many consumers. They do not want to reveal their sensitive information online every time they want to access a new product or service. And usually, when signing up for an online casino, you have to provide a lot of this information.
GambleFi essentially lets users circumvent this by asking for virtually no personal information from them. Its decentralized nature means that users can be fully anonymous as they gamble and need only connect their crypto wallet. And as many of us know, crypto wallets can be opened with full anonymity as well. This means that from opening a wallet to gambling on a GambleFi platform, the user can protect their identity.
This is not only privacy-preserving but convenient as well. Connecting a crypto wallet can be done in a few taps as opposed to filling out forms to open an account.
Control Over Assets
Another reason why GambleFi is so disruptive is that it lets users retain control over their own assets. We have to consider the fact that when you deposit your crypto or fiat currency into a casino, you trust that your funds will be kept safe and given back to you when the time comes. Not every consumer is comfortable with this and the popular saying, ‘Not your keys, not your coins’ comes to mind.
GambleFi gives users the best of both worlds as they do not have to give up control of their tokens but merely connect their wallets. Even with this connection, the casino cannot initiate a withdrawal of funds if it goes against the smart contracts put in place. In terms of control of funds, it doesn’t get more generous than GambleFi at this point.
The Chance for Additional Profit
A very unique feature of GambleFi is the opportunity it gives customers to contribute to the liquidity pools of the casinos that they use. In traditional gambling setups, the only way for users to make money is by actually gambling or buying a stake in the casino, which is very expensive. But by putting tokens in the liquidity pool, users can earn money from the casinos, whether or not they gamble.
This also contributes to the sense of community around these casinos as they are not only kept functional by the users who play but also those who volunteer their tokens towards the operation.
