Exploring Decentralized Betting Platforms—DeFi in Gambling

In the past few years, decentralized finance has taken the entire crypto market by storm, and of course, the gambling industry is not immune to its effects. DeFi bypasses traditional banking institutions, so it gives punters at Cryptorush much better control over their gambling assets. Moreover, it allows players to enjoy a much safer and more transparent gambling experience, so let’s guide you through the big impact DeFi has had on crypto casinos.

Let’s start with the basics here. Decentralized finance, or DeFi, stands for a system that allows all financial services by users at a crypto casino to be done on a blockchain network, which is inherently decentralized as well. That way, unlike traditional financial institutions, DeFi heavily relies on smart contracts—self-executing agreements with the terms written directly on the code. Through this innovation, DeFi participants will get to access various services in a transparent and efficient way. As you can imagine, the DeFi world relies on cryptocurrencies, and its ultimate goal is to democratize financial access.

If you have had any experience with a crypto sports betting site, you must have realized it comes with a very distinctive set of features compared to traditional operators. For starters, in traditional finance and fiat casinos, centralized institutions such as banks hold control over transactions and user assets. In contrast, DeFi casinos function on decentralized networks, which primarily use public blockchains. A great example here is an Ethereum sportsbook. Ethereum is a decentralized platform with ETH as its main crypto asset.

Another outstanding benefit of DeFi and associated casinos is their integration with cryptocurrencies, which offer punters new and flexible payment methods for their everyday transactions. The very best DeFi casinos in the world support a wide plethora of crypto payment methods, so let’s guide you through the most used ones.

Bitcoin

The first crypto to hit the decentralized financial world, Bitcoin runs on the network of the same name and has been a staple in the gambling industry ever since its inception. It has eliminated some of the disadvantages that come with fiat gambling, and its high popularity has led to solid liquidity, so you will have no problem finding a casino that supports BTC and you can easily trade it.

Ethereum

DeFi is mainly used for peer-to-peer financial services on public blockchains, mainly Ethereum. So, thanks to its smart contracts functionality, ETH allows you to make even faster and more anonymous transactions compared to BTC, which is part of the reason why ETH is close second in terms of crypto market cap.

Tether

If you are not quite fond of the volatile nature of ETH, BTC, and all the rest of the cryptocurrencies, you can always switch to a Tether sports betting platform. Tether is a stablecoin, with its value pegged to fiat currencies—mainly the US dollar. That way, theoretically, USDT is not prone to price fluctuations and remains stable.

Litecoin

Finally, a word of mention must go to every Litecoin sportsbook out there. Litecoin was created two years after Bitcoin, and its main goal was to eliminate some of the negative aspects that loomed over its predecessor—mainly the growing centralization concerns and slower transaction times. Litecoin generates new blocks every 2.5 minutes, so you can expect much faster transactions if you use it.

In the end, we can safely say that DeFi in crypto casinos holds some considerable advantages that every player can benefit from: increased transparency, faster payments and more secure overall gameplay. Nevertheless, for obvious reasons, traditional gambling laws cannot be applied to such platforms, so the near future should introduce more focused attempts to implement regulatory compliance issues into DeFi.