Home Business Insights & Advice Security and fraud prevention in gaming with blockchain

Security and fraud prevention in gaming with blockchain

by Sarah Dunsby
27th Jun 24 4:25 pm

In the world of online gaming, developers are constantly attempting to safeguard their digital ecosystems and sensitive user data from theft and fraud. This is where blockchain technology comes in; its permanent and decentralised ledger enables it to become one of the most effective tools in combating fraud and enhancing security.

By integrating blockchain into iGaming platforms, issues such as user verification, game rigging, transaction transparency, and fairness guarantees are all addressed. In addition to eradicating these concerns, blockchain can also be utilised to improve gameplay, tailor the customer experience, and allow for a wider variety of games.

Key takeaways

  • A blockchain is a decentralised and immutable ledger, used to keep records of transactions.
  • Some of the biggest security risks in online gaming today include game rigging and manipulation, identity theft, and financial fraud.
  • Blockchain technology increases security and prevents fraud through making all transactions verifiable and visible.

Understanding how blockchain technology works

The definition of blockchain

To put it simply, a blockchain is a ledger or database, primarily used to keep decentralised and irreversible records of transactions. They are associated the most with cryptocurrency systems, but are increasingly being used for other purposes, such as gaming. More recently, offshore casinos, which combine both digital currencies and online gambling, are making use of blockchain technology. According to casinosnotongamstop.ltd, these sites also allow players to enjoy gambling with fewer restrictions and often anonymously, too.

Blockchains can be useful in virtually any industry, as they maintain proof of all data and transactions made. What distinguishes them from other types of databases is that they store information differently; data is linked together in ‘blocks’ through the use of cryptography.

Blockchains and decentralisation

The decentralisation of blockchain accounts for a large part of its allure, as it helps to prevent important records from being tampered with. The data within the chain is distributed between many different ‘nodes’ within a network, all based in different locations. If a hacker attempts to alter or access information from a database via a particular node, the other nodes will stop this from happening. In other words, once inputted, any data within the network is immutable and cannot be changed by any one individual.

Security and fraud risks in gaming

Game rigging

One of the most common security risks in online gaming is rigging, which typically involves breaking into the software of a game and exploiting bugs or unsanctioned tools (such as cheat codes) to unfairly influence outcome. This is common across many different types of games, such as real money online casinos, where hackers have manipulated slot or table games, leading to losses for customers and game developers.

Identity theft

As a result of compromised data, individuals have been able to create digital gaming accounts with stolen or false identities. Identity theft often goes hand in hand with financial fraud, which occurs when hackers wrongfully use banking information to game online.

How blockchain can be used to increase security and prevent fraud

Transparency in transactions

Perhaps the most significant benefit to deploying blockchain technology is that it encourages transparency. During the course of a game, all participants, bets, outcomes, and payouts are recorded on the chain permanently. This proves to players that each and every game is fair, which is why many are choosing to play at blockchain online casinos, rather than their more traditional counterparts. In addition to increasing verification, transparency also creates a culture of trust for all parties, as players feel protected by gaming operators.

Using blocks to improve authentication

What sets blockchain technology aside from its competitors in the realm of online gaming is the unrivaled security it affords users. Blockchain casinos, for example, do not struggle with the issues that traditional casinos do, such as identity fraud or data breaches. The decentralised nature of the database, paired with each transaction being permanently recorded and verified, makes it virtually impossible for any data to be tampered with.

Optimising smart contracts

An innovation born from blockchain technology, smart contracts add a further layer of security to online gaming platforms. A smart contract is a program designed to automate the transactional process by recording, executing, or controlling movements as per the terms and conditions of a contract. They help to enhance security and reduce fraud by making all steps of a transaction visible, automating payments, and halting unauthorised activity or changes.


To summarise, the benefits of utilising blockchain technology in iGaming are numerous. Multiple reports have found that online casinos making use of blockchain have seen significant fraud reduction, whilst traditional casinos still fall victim to identity and financial theft. Not only are blockchain games more reliable, fair, and safer to play, but they provide an improved gameplay for users. Transparent gaming fosters an atmosphere of trust and equality, which empowers gamers to play freely and without concern. The future of online gaming hinges on whether or not blockchains are integrated further into operations, but we are hopeful that more developers will see the advantages, and usher in a new era of safe gaming.

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