Bitcoin’s success in the past few years has sent waves throughout multiple industries. Finance, entertainment and trading are all affected by the success of the first cryptocurrency, and all of its alternatives. There are even those who are convinced that the internet itself is due for a massive overhaul. Such people have spoken in favor of a new model for the world wide web, one which they call Web3.
Web3 and the Future of iGaming
Web3 is a concept that has been around for close to a decade now. But while debates have been raging hot about its convenience and likelihood, many are still confused about what it means. Plainly put, Web3 is the idea that the future of the internet is going to be entirely blockchain-based. We can certainly see some specks of that in online-based industries like iGaming, where affiliate platforms like Casino Groups are heavily invested in assessing crypto casinos.
The iGaming ecosystem, like many of those tied to the internet, are undergoing some serious changes. Largely the shift is brought about by the success of cryptocurrency. But there are still plenty of gamblers and sports bettors who are not fully on the bandwagon. Some are simply unfamiliar with how the crypto market operates, while others are not particularly enamored by it. It is why we need to assess how blockchain-based loyalty tokens and staking rewards are going to impact the market moving forward.
Loyalty Tokens and iGaming
Loyalty tokens is just another phrase for a crypto product or a digital asset. A Bitcoin token or an NFT could be called a loyalty token. It is anything that transforms what we would consider traditional rewards and winnings into a digital asset that lives comfortably on a blockchain. So, what exactly does this mean for the crypto market?
The big one is that it introduces interoperability. Digital tokens can move across different ecosystems, allowing for collaborative events between sister casinos or easy transfers between customer and operator. The best part is that clients can use cryptocurrency regardless of their physical location, without having to worry about exchange fees.
But what most fans are looking forward to is doubtless the concept of true ownership. The rewards resulting from a well-placed bet or a lucky wager are going directly into a customer’s digital wallet. The player can then access the transaction’s full history by using a generic blockchain browser, and making sure that everything transpired just as the result would have them believe. The greater transparency of blockchain casinos is certainly one of the biggest benefits for consumers.
Staking Rewards and their Impact
Crypto traders may already be aware of the extra payments that one can receive from a blockchain network by choosing to lock up their digital assets. This action enables transaction verification, thus contributing to a safer and more secure system overall. But how does this phenomenon affect iGaming at all? This is where we must talk about revenue-linked multipliers and cashbacks.
Online casinos today will often issue their own unique utility tokens. Most of these casinos will also often funnel a percentage of their net gaming revenue into bonus features, rewards, or multipliers. Thus, when a player stakes the house utility token, they can actually get a direct cut of the profits. It is a pretty unique way to engage with the modern iGaming space.
Staking rewards can also result in risk mitigation for the players involved. A savvy player may be able to lock away a portion of their bankroll, and in return earn a stable token reward. The possibilities here are endless, really only limited by the operator’s willingness to engage with the crypto sector. Which brings us to our final point.
Why Opt for FIAT Money?
If the crypto space offers such wonderful possibilities, why are more operators not hopping on the bandwagon. The answer is that there are still some kinks that need to be figured out. For example, there are plenty of gamblers who are not too fond of the volatile nature of cryptocurrency. It isn’t a secret that Bitcoin and many of its alternatives are not very stable. It is possible for a player to win a big pot in crypto, but still come out short because of a drop in the market that happened simultaneously.
So is the Web3 vision dead in the water? The answer is no. But we are still quite a way away from a reality in which the whole internet has embraced the crypto space. Blockchain technology is a lot more profitable than ever though, which means there is still hope for the future.
Disclaimer: This is a sponsored press release, and is for informational purposes only. It does not reflect the views of CryptoTotem, nor is it intended to be used as legal, tax, investment, or financial advice. The author or the publication does not hold any responsibility, directly, or indirectly, for any damage or loss caused or alleged to be caused by or connected with the use of or reliance on any content, goods or services mentioned in this article. Readers should conduct their own research before taking any actions related to this company.