Technical Explanations
Even though gambling tokens are tied to specific platforms, they use similar technology to regular cryptocurrencies to ensure player safety. The following are the most essential features to note:
- Blockchain Technology: Gambling tokens record transactions on the blockchain, ensuring fair and secure transactions. As a public ledger, you can view and verify payments anytime.
- Smart Contract: With smart contracts, GambleFi platforms can automate various processes, such as payment transfers and data management, without intermediaries or manual intervention. It allows for lesser fees and faster transactions.
- Provably Fair Technology: Cryptocurrencies birthed provably fair systems, and they’ve become widespread on GambleFi platforms. These systems use blockchain technology, allowing you to verify the integrity of every betting round of specific games.
The integration of such native tokens comes with several benefits, the major one being the move from centralized to decentralized systems. Such casinos allow anonymous gameplay, so you can enjoy gambling without worrying about KYC verifications and privacy violations.
Plus, as we already mentioned, the blockchain allows for secure transactions; you can make payments without providing sensitive financial details as you would when using methods like credit and debit cards or bank transfers.
Gambling tokens use technologies identical to those of virtual assets, meaning their processing times are similar to those of regular digital coins. Deposits are lightning fast, reflecting in your account within minutes. Likewise, withdrawals are speedy, taking between a few minutes to a few hours.
Case Studies
Several projects have popped up over the years, some more successful than their counterparts. Here are five of them, how they operate, and their security measures:
| Coin | Description | Security and Fairness Measures |
|---|---|---|
| Rollbit Coin (RLB) | An ERC-20 token on the Ethereum blockchain that provides various betting opportunities. It has established significant partnerships, contributing to its success and reputation in the gambling token market. | Uses the Ethereum blockchain for transparent and secure transactions. |
| FUNToken (FUN) | FUNToken is designed to integrate seamlessly with third-party dApps and includes features such as a proprietary wallet (XFUN Wallet). The platform emphasizes low-cost transactions and is much cheaper than Bitcoin and Ethereum. | It uses the Polygon blockchain, allowing for lower transaction fees and making it more efficient for users. |
| Scorpion Casino (SCORP) | A newer entrant in the GambleFi space that allows users to earn passive staking income in USDT. | The native platform uses a Curacao eGaming license. |
| Exeedme (XED) | XED is an ERC-20 token available on the BSC, Ethereum, and Polygon blockchains. The founding company intends to expand the coin's reach to other networks, making it easily accessible. | It leverages the blockchain’s features to ensure security. |
| Shuffle token (SHFL) | The Shuffle Token (SHFL) is a cryptocurrency associated with Shuffle, a prominent crypto casino and sports betting platform. SHFL is designed to enhance the gaming experience on Shuffle by providing various for its users. | The gambling platform is licensed and regulated, making it subject to certain rules. |
Regulatory Compliance
The regulations governing cryptocurrencies and gambling tokens often overlap. For instance, both must comply with Anti-Money Laundering regulations. However, there are differences in their regulatory compliance because while both are used for gambling activities, cryptocurrencies are permitted in a broader market space.
Unlike cryptocurrencies that are involved in other financial investments in different sectors, gambling tokens are limited to online gambling activities. As a result, cryptocurrencies are regulated as financial instruments in many jurisdictions. In the USA, the Securities and Exchange Commission (SEC) may classify certain digital assets as securities, subjecting them to securities laws.
On the other hand, gambling tokens are subject to stringent licensing requirements from gambling authorities. For instance, in the USA, states like New Jersey require operators to obtain specific licenses to offer online gambling services. Similarly, in the United Kingdom, the UK Gambling Commission (UKGC) mandates licensing for any entity offering gambling services.
User Experience
The security and fairness measures implemented by GambleFi tokens directly impact the user experience. Thanks to blockchain technology and smart contracts, GambleFi platforms can offer users a more transparent and trustworthy gambling experience. Using decentralized RNG systems also instills confidence in users, as they are certain that every betting round is genuinely random and provides all players equal winning chances.
Provably fair systems further build trust in GambleFi platforms’ operations because, as we already noted, they allow verification of game outcomes using cryptographic methods. This level of transparency is unparalleled in traditional online gambling and has become a major selling point for GambleFi platforms.
Another innovative feature we often encounter at GambleFi platforms is “staking.” This is the ability to bet on cryptocurrency price movements. In other words, you predict whether the value of a specific coin will fall or rise within a particular time frame. It lets you combine your interest in cryptocurrencies with gambling excitement, creating a unique and engaging user experience.