If you play at VulkanBet casino (or any other online casino), you are already familiar with the term “coins”. But if you are not, we can say that these are a special currency that is present in every online casino, and coins represent your balance. For example, when playing a slot machine, each spin can cost 0.10 – 5.00 coins, which are deducted from your balance. Likewise, your earnings are calculated in coins and added to your balance. Coins are tools that are also used in land-based casinos. However, thanks to blockchain technology, they are about to change and will turn into a “token” in their own right. Below we share everything you need to know about this revolution.
How Do Crypto Tokens Work?
First of all, let’s say that the terms “token” and “coin” are different from each other. In blockchain technology, both take on different roles. To put it simply, tokens are things tied to coins and can only be used in online casinos. However, they can be converted into coins and exchanged with Fiat currencies at any time. The system works like this:
- First of all, a cryptocurrency gets developed. Let’s call it CC (casino currency/coin). CC is a real cryptocurrency and can be purchased from exchange sites like all other cryptocurrencies. You can become a member of any exchange site and buy any amount of CC with your credit card. The CC you buy is stored on the respective blockchain and has all the advantages of cryptocurrencies: it offers security, privacy, and speed. In addition, it is possible to re-convert it into Fiat currencies through exchange sites.
- A token linked to the coin is also created on the CC blockchain. Let’s call it CT (casino token). These tokens have a certain exchange value, for example, 1 CC equals 5 CTs. The feature of CTs is that they are not available on exchange sites and have no monetary value. They can only be used as a virtual currency in online casinos and represent your balance. However, since they are still running on the blockchain, they have security, privacy, and speed advantages too. Each CT’s owner can be determined according to the blockchain records, and it is not possible to change these records in any way.
- When you want to play in an online casino that supports CC, you first buy CCs as explained above and convert them to CTs. When you make a profit, you can convert your CTs back to CCs. In this way, it is also possible to convert them to Fiat currencies on exchange sites.
Crypto tokens replace classic casino coins. If you are not interested in blockchain technologies, you probably won’t understand why: Why is a complex technology like crypto tokens being developed when there is a simple option like coins?
The Advantage of Crypto Tokens
The aspect of this technology that concerns players is that it makes every financial transaction instant. Here’s how things go in an online casino that uses classic coins:
- You earn money as coins. This earning is converted into Fiat currency and transferred to your balance.
- You request a withdrawal and choose a payment method (e.g. bank transfer). Casino management examines this request and approves it if appropriate. However, if you have an active bonus or have not verified your identity, this will take quite a while. Also, the casino must support a payment method that you can use in your country.
If you are a casino player, you are familiar with this process and already know how things work. So, what advantage does using crypto tokens provide?
- You are still the owner of the CTs you transferred to your balance. The casino never takes control of them. When you make a profit, the new CTs you earn are automatically and instantly recorded on the blockchain.
- This simply means that you don’t need to make a withdrawal. You never lose control and ownership of your CT’s. The casino management does not need to approve your request or send the money to you because your money is already under your control. When you make a profit, the blockchain records are updated within seconds, and you are literally making an instant withdrawal, without even asking for it.
- You can convert your CTs to CCs in just a few seconds and exchange them for Fiat currencies using exchange sites.
This is an incredible technology because it eliminates many problems such as identity verification, withdrawal approval, and the obligation to support multiple payment options. You never send your money to the casino and therefore do not need to withdraw it: the blockchain handles all the necessary transactions automatically.