Global impact of Web3 on iGaming industry

Decentralization, metaverse, cryptocurrencies, iGaming, independent financial systems – a few years ago, people who talked about them were considered almost crazy, but today they are our future. The era of Web 3.0 had arrived, Whether we like it or not – and we should have started to be interested in its basic principles and vectors since yesterday.

Web 3.0 or Web3 — is a new decentralized Internet where everything is built by users, owned by users, and managed by users. At a time when the Internet space is monopolized by large tech giants, Web 3.0 allows users to dictate their own rules.

At the intersection of technological advancement, Web3 heralds dramatic changes that could upend entire industries and redefine how people interact with digital worlds. This is not just an evolution, but a revolutionary change in the essence of user experience. Looking at the statistics, it’s clear that numerous industries are on the brink of substantial transformation.

The casino area promises to be particularly exciting – this sector is an optimal place to adopt Web3 top features and drive a wave of innovation by redefining the dynamics of user interaction. Nowadays the iGaming business prospers, with an estimated worth of $116 billion in 2017, projected rising to $128 billion by the year of 2023. It could be an outstanding results.

Among the main advantages:

Decentralization. Ownership is divided between developers and users;
Minimum of permissions or their complete absence. Each user has equal access to Web3 technology, without exceptions;
Own payment system. In Web3, all payments will be made using cryptocurrencies, and users will choose convenient payment methods. This will allow to move away from outdated payment processing tools;
Does not require trust. The absence of a third party will allow you not to rely on others, everything will be decentralized based on incentives and economic mechanisms.

Introduction to Web3

If you’re reading about Web3 for the first time, it can be difficult to grasp its essence right away. How can a network be decentralized? How can users exchange data without intermediaries?

This concept is based on the fact that the World Wide Web is currently a fairly centralized structure managed by corporations such as Google or Meta. They are the ones who prescribe the algorithms for what information to show you when you open your Facebook news feed or make a search query. In particular, these companies allow you to use their services for free in exchange for data about you: your interactions with content, digital habits, etc.

Later, companies use this knowledge to provide access to you to advertisers and, accordingly, to show you their promotional products. This business model is what Web 3.0 ideologues want to change. They believe that information can once again be exchanged from person to person, without the involvement of a third party, as it was in Web 1.0. Usually, an intermediary is needed to verify an action. However, it is possible to do without it thanks to blockchain technology.

Despite the fact that the first manifestations of Web3 in 2023 are already functioning, the idea has not yet been fully implemented. Currently, there are many different projects and areas around the concept of the decentralized Internet that businesses are actively investing in.

So, in 2023, Web3 will include the following components:

Cryptocurrencies. These are digital currencies that are an alternative to traditional money that is dependent on the central government of a particular country. The most famous cryptocurrency is Bitcoin, created in 2009.
NFT. This is a digital asset that can be exchanged or sold. It can be presented as a photo, music, video, or any other work of art. NFT is an abbreviation of Non-Fungible Token, which means “irreplaceable token”.
dApps or Decentralized applications. These are decentralized applications that run on the blockchain and have a built-in mechanism for distributing data across the network. The most famous decentralized platforms are Ethereum, EOS, TRON, and others.
Smart contracts. These are contracts in the format of program code written on the blockchain, which should become an analog of legally certified documents in Web3.
DeFi or Decentralized Finance. This term covers a variety of online platforms that allow exchanging cryptocurrencies, obtaining loans in digital assets, and making deposits.

iGaming stands at the intersection of online gambling, presenting itself through websites and mobile apps. At its core, this sector offers users unrestricted access to online casinos, breaking free from the constraints of location or time. Gamblers can indulge their interests wherever and whenever they please.

Gaming, also known as Internet gambling, gained momentum in the 2000s due to technological progress and widespread access to high-speed Internet. Nowadays it’s experiencing heightened productivity, marked by the emergence of new websites, applications, and associated services. iGaming doesn’t seek to replace traditional casinos; instead, it supplements them, offering players additional features and options.

In the modern context, certain Web3 technologies possess the capacity to profoundly influence iGaming, introducing a revolution that extends beyond gameplay to encompass user management and transaction security. Cutting-edge web developments now facilitate the secure storage of player data, mitigating the risks associated with hacking and other forms of manipulation. The incorporation of blockchain technology elevates the security of online transactions, eradicating the necessity for intermediaries, cultivating trust among clients, and paving the way for innovative possibilities. Additionally, decentralization simplifies integration and communication across a spectrum of platforms, including online casinos.

Web3 not only presents unique possibilities for heightened security and reliability, but also instills a sense of confidence regarding the safety of player’s personal data and financial transactions. Overall, the potential of Web3 lies in enhancing the iGaming experience through advanced technologies and robust security measures.

iGaming & Web3 combined

Web3’s ascent provides abundant prospects for the iGaming realm, notably through the adoption of blockchain technology. This cutting-edge approach ensures transactions that are both secure and transparent, fortifying player data and upholding the credibility of iGaming platforms.

Web 3.0 introduces the capability to craft tailored gaming encounters via decentralized applications (dApps), streamlining direct player engagements. This pivot towards user data control signals a move to decentralization and self-governance, instilling heightened confidence in game integrity, especially in the domain of online casinos. Additionally, Web3 ushers in fresh prospects for iGaming by ushering in tokenized in-game assets and non-fungible tokens, enriching the overall player journey. In essence, Web3 sets a novel benchmark, championing equity and safety for every participant.

Web3 technology unveils fresh horizons for gaming, empowering the analysis of player behavior and delivering personalized gameplay. Moreover, Web3 facilitates seamless data interchange and player engagement spanning diverse devices, enhancing accessibility and convenience in multiplatform gaming. Ultimately, the integration of Web 3.0 has the potential to transform iGaming into a social venture, unlocking novel prospects for communities and interaction within the online sphere. Given the continual evolution and proliferation of Web3 technology, its substantial influence on the future of iGaming is unmistakable.

Cryptocurrency benefits for online casinos

Cryptocurrency is a digital currency used as a means of payment. The main advantage of cryptocurrency is that it does not depend on inflation and exchange rates, which makes it more stable. Besides, cryptocurrencies have a high level of security and confidentiality, which makes them attractive for use in online casinos.

Other advantages include:

Absolute anonymity of transactions;
Almost complete absence of betting limits;
It is impossible to block an institution that uses cryptocurrencies for payment;
100% security of payments;
No losses on exchange rate differences.

Using Web3 technologies can determine the future growth and success of the iGaming industry.

Final thoughts

Given how rapidly this topic is developing, I am inclined to believe that this is a revolution after all. Two years ago, it wasn’t even talked about on the sidelines of iGaming and Web3 fusion, but now it’s one of the hottest topics.

To my opinion, the fundamentals of blockchain technology are perfectly suited for a great era of gamification where decentralization, security, tokenization and ownership can play a big part in changing the way we know gamification. We have a unique opportunity to observe and perhaps even actively participate in this development.

Artificial intelligence and fear of the unknown: what will Web 4.0 be like?

Everyone imagines Web 4.0 in different ways. Someone talks about complete decentralization in almost all spheres of life, someone talks about complete robotization. I am a supporter of the fact that the emphasis will be on the interaction of people with artificial intelligence.

Web 4.0 will open up two sides for us. On the one hand, there will be new opportunities, minimal or no censorship, decentralization, and new financial realities. On another – we will become too dependent on robotization. And when we talk about Web3, we understand that we can track all financial transactions in cryptocurrency with virtual casinos. In 4.0 the level of transparency, speed and reliability of communication on the Internet will increase several times.

Web 4.0 will be the era of augmented reality technologies, companies will reach a completely different level, and the virtual world will be integrated with the real one. The impact of technology is increasing every year, which affects the labor market and people’s psychological health. The transition from Web 3.0 to Web 4.0 will be much faster than the transition from Web 2.0 to Web 3.0. Only time will tell whether society will be ready to accept new reality… so what do you think?

Dennis Stets

Gambling expert

Hello, I’m Dennis. With almost 10 years of experience in the online gambling industry (since 2014), I bring a wealth of expertise to the table. My specialization lies in casinos and crypto casinos, where I have honed my skills and knowledge. Throughout my career, I have written extensively on topics ranging from online poker to sports betting, contributing valuable insights to the field. Explore the dynamic world of the gambling industry through my expert materials and stay informed on the latest trends and developments of gambling world.