Decentralized vs Centralized Gambling....Which do you prefer?

[joniboini]

But with L2 scaling solutions and alternative chains, this should no longer be a problem. with layer 2 like Matic is totally fine since they are using their native token as a gas fee. But today L2 scaling let say Linea, Zk Sync and other like Arbitrum still occur a high fee in my opinion I recently claims a token for daily login in some airdrop the fee still at the rate 0.5-1$ I know that some people consider this as cheap than the regular L1 like ETH that can cost up to 10-15$ but if we accumulate that it could be a huge.

I think most of these scaling solutions failed to address how to reduce the size of smart contract interactions, which is why even though the base fee is low, any interaction costs a lot of money. Another reason is simply because the demand is too high and most people are fine paying that much fee for them. If a platform can package an interaction without incurring any fee and then take the fee when the user finishes their activity, maybe we will see cheaper fees on platforms like DEXs, decentralized lending platforms, etc. The fact that new products go live once in a while, and while it is not yet mainstream, shows that the demand will likely stay as long as privacy-conscious people exist.

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[Jawhead999]

With the future set to be dominated by AI, the Blockchain, and Quantum Computing, I wouldn't be surprised if decentralized gambling replace (or becomes comparable to) their centralized counterparts in the long run. Just my thoughts

Looking at the current situation, it won't happen or it might be happen, but not in our generation.

Take a look with Bitcoin, we already have the side chains and Layer 2, but until now not many people use it, even though they keep complaining the on-chain fees is expensive. Using side chains and Layer 2 will make them able to send and receive Bitcoin without need to worry about the fee, so they can hold their coins in non custodial wallet instead of centralized exchange.

Same to Web3.0 casino, people already skeptic to connect their wallets to the sites directly, so they stick to centralized casino instead.

[Mr. Magkaisa]

         -     I have never experienced gambling with a decentralized gambling casino in the crypto space. Because I often play gambling so far, there is a KYC because there is no problem for me when I give a KYC because the casino that I play at often is also reputable.

I'm not sure if I've ever played on the Dex gambling platform, but what I know is that it's often in regulated casinos here in the crypto space, but I don't think there's anything wrong with gambling on the Dex gambling platform.

[khiholangkang]

         -     I have never experienced gambling with a decentralized gambling casino in the crypto space. Because I often play gambling so far, there is a KYC because there is no problem for me when I give a KYC because the casino that I play at often is also reputable.

I'm not sure if I've ever played on the Dex gambling platform, but what I know is that it's often in regulated casinos here in the crypto space, but I don't think there's anything wrong with gambling on the Dex gambling platform.

I also have KYC at several central casinos, and there are no problems whatsoever to this day, also some accounts are very unfortunate if they are abandoned because they have reached a certain VIP level on each account I created, of course starting from scratch at Dex casino will make it difficult for me to reach the VIP level again and that's one of the things that makes me lazy to register at another casino.

Also even though I have to use my identity to register but my security is much more guaranteed, it's just that the identity problem may be questionable security, and at DEX casino is on the service and security of the casino, whether it can be trusted or not, whether it is fair or not, maybe I need some surveys from many people to see that.

[piebeyb]

         -     I have never experienced gambling with a decentralized gambling casino in the crypto space. Because I often play gambling so far, there is a KYC because there is no problem for me when I give a KYC because the casino that I play at often is also reputable.

I'm not sure if I've ever played on the Dex gambling platform, but what I know is that it's often in regulated casinos here in the crypto space, but I don't think there's anything wrong with gambling on the Dex gambling platform.

Sometimes people complain about privacy issues on gambling sites that implement a KYC system or can be said to be centralized gambling sites, they don't want to provide KYC of their identity just because of privacy issues but they are also sometimes afraid to play on decentralized gambling sites because they are worried about losing money or at any time something happens. hacking of smart contracts or other issues so they can't file any case against that site because it's rare for them to have the reputation of a decentralized gambling site.

I usually just try playing decentralized gambling just to try it out, but in my opinion it's a bit boring if you have to make transactions using a smart contract to play, it's not like playing gambling on a centralized gambling site where I make a deposit then play and if I win I withdraw the money without having to process it. transactions from smart contracts which may often be used by decentralized gambling sites, are not a problem with centralized and decentralized gambling because everything comes back to the trust of each gambler. All risks return to the user.

[moneystery]

         -     I have never experienced gambling with a decentralized gambling casino in the crypto space. Because I often play gambling so far, there is a KYC because there is no problem for me when I give a KYC because the casino that I play at often is also reputable.

I'm not sure if I've ever played on the Dex gambling platform, but what I know is that it's often in regulated casinos here in the crypto space, but I don't think there's anything wrong with gambling on the Dex gambling platform.

just like you, i also didn't find any problems when using centralized casinos that enforce kyc on their users. the service they offer is also secure and i rarely encounter serious problems related to privacy and the games i play. so because of this good experience, i don't think i want to switch to using a decentralized casino, but i wouldn't mind if i was offered to play at a decentralized casino, but just to try.

[dunfida]

With the future set to be dominated by AI, the Blockchain, and Quantum Computing, I wouldn't be surprised if decentralized gambling replace (or becomes comparable to) their centralized counterparts in the long run. Just my thoughts

Looking at the current situation, it won't happen or it might be happen, but not in our generation.

Take a look with Bitcoin, we already have the side chains and Layer 2, but until now not many people use it, even though they keep complaining the on-chain fees is expensive. Using side chains and Layer 2 will make them able to send and receive Bitcoin without need to worry about the fee, so they can hold their coins in non custodial wallet instead of centralized exchange.

Same to Web3.0 casino, people already skeptic to connect their wallets to the sites directly, so they stick to centralized casino instead.

I dont really see any reasons for centralized platforms or businesses that would really cease to exist due to technology.There would really be more that having that integration and have  those changes to
make user experience even more better.There would really be those gamblers who would really be sticking into something fast and instantaneous rather than on making some bets and waiting up for some blockchain hash
results before you would really be able to see whether your bet is a win or lose and we do know that gamblers are really that impatient then it would really be just that normal that they would really be sticking into something which is really that instant. This is why i dont really believe that centralized platforms would cease to exist.

My preference? It would really be on centralized because when it comes to design then it is really that a far cry into those decentralized platforms on which i have seen.
When it comes on connecting your own wallet, then im not really that confident when it comes on connecting my wallet into a certain site.

[Eternad]

Do you think decentralized gambling dApps will eventually replace their centralized counterparts? If not, why? Which do you prefer? Centralized or decentralized gambling? Your input would be greatly appreciated. Thanks.

Gamblers is now more confident with casino license than decentralized games since common gambler still doesn’t understand how smart contracts works and how to verify probably fair games.

Besides most of the cool games from 3rd party providers is from centralized casino. So unless decentralized games can match how cool the games on centralized casino, I doubt gamblers will choose decentralized over centralized casino. Most of the games on decentralized casino is more on common simple games. I’m not sure what’s the current game version they offer but I doubt they can match centralized games.

[Potato Chips]

Centralized gambling platforms are likely to still reign over because in any crypto servce the general public has always prioritized convenience and what they are already familiar with. Alternative means has always been more of a niche to people.

Not to mention the huge game library centralized platforms offer which from a player standpoint is quite tempting. Personally, it's hard to distance with the providers I'm used to and they only work with licensed centralized casinos.

[teamsherry]

When it come to thigns like gambling I would always chose centralized platforms, cause I've had a better experience with them than decentralized platforms, apart from  the hack issues recently going on with decentralized gambling platforms, other things like high withdrawal fees, transactions getting stuck and more scalability issues, I'll just stick my tail with the centralized platforms.

[uneng]

Except now that dApps charge high gas fees (on ETH) due to increased network congestion. But with L2 scaling solutions and alternative chains, this should no longer be a problem.

That is the main issue with decentralized gambling, and even though they implement scaling solutions, gamblers will still have to pay extra fees anyway, when compared to centralized casinos where you pay fees only when depositing and withdrawing your money from the platform. I believe decentralized gambling is never going to replace the centralized platforms, just like the usage of Bitcoin and crypto in general is heavily influenced and dependent on centralized exchanges and investments funds in general. Only a minority seek for total decentralization, while majority will seek for accessibility and easiness, even if it comes with a bitter price to be paid.

[ethereumhunter]

I still prefer to casino than decentralized gambling dApps. I don't have a problems if the casinos asked me to do KYC before I can playing gambling or asked that when I want to withdraw the money. But before I choose the casino, I will read their TOS to know what their rules. I don't playing gambling at the decentralized gambling from a long time ago because I already saw the gas fees becomes higher and I can't pay that gas fees. But maybe there are decentralized gambling that doesn't use just ETH or use coins that have a cheap fees.

[noormcs5]

         -     I have never experienced gambling with a decentralized gambling casino in the crypto space. Because I often play gambling so far, there is a KYC because there is no problem for me when I give a KYC because the casino that I play at often is also reputable.

Well, there is no option for us but to do the KYC on the centralized casino. However, doing KYC even in a reputable casino can be risky too because we are not sure how securely the casino will keep out KYC documents. Any hack or mismanagement of these critical documents can expose our private information to the bad guys. So if there was an option of NO KYC, i would have opted for it but right now we have to do the KYC if we want to play at reputed casinos.

I'm not sure if I've ever played on the Dex gambling platform, but what I know is that it's often in regulated casinos here in the crypto space, but I don't think there's anything wrong with gambling on the Dex gambling platform.

The gambling DEX platforms are unknown to me as well and if there exists any, they are not so popular. Some casinos claim themselves to be Web 3.0 but they are not in reality.
I don't know if there is any significant progress in shifting from centralized casinos to non-centralized ones. The gambling industry seems to be giving no priority to the decentralized casinos.

[Huppercase]

Thanks to the inception of smart contracts, we can now enjoy decentralized gambling in a provably fair way. I've used a few gambling dApps in the past, and the experience was great. Except now that dApps charge high gas fees (on ETH) due to increased network congestion. But with L2 scaling solutions and alternative chains, this should no longer be a problem.

Do you think decentralized gambling dApps will eventually replace their centralized counterparts? If not, why? Which do you prefer? Centralized or decentralized gambling? Your input would be greatly appreciated. Thanks.

When you said alternative chain, do you know that it's going to be extra task for the casino if they want to implement different blockchains. By demand, low fees chain include Tron, Matic or polygon, Binance smart chain bsc, and if they want to add Lightening Network, it's going to require extra work. This might bring some transparency in gambling but it will yield small customers as it's not everyone that will be ready to pay these fees, some people pledge cent in wager to win good amount, it will be like a burden to them.

I also think that decentralized gambling platforms are going to be slow for games like blackjack and slot, you have to execute a transaction in real time before you wager that money unlike where it is done in database with centralized casino. If there is a way that it will be smooth and easy, we will have plenty of them by now but even in this forum, 90% of gambling platforms here are all centralized.

[umbara ardian]

Decentralization shouldn't be a label, it should be a reality.  If DeCas still require registration, account freezes, or have modifiable smart contracts, they're essentially centralized casinos wearing blockchain masks.  True decentralization implies a system beyond the control of any single entity.

Fairness is the bedrock of any casino, and DeCas rely on provably fair algorithms to ensure this.  However, the effectiveness of this approach hinges on the complexity of the games.  For math-based games like roulette or slots, provable fairness works well.  But for sports betting or events with external factors, true verifiability becomes trickier.

High fees are a major turn-off for DeCas. Layer 2 solutions and blockchain advancements hold the key to solving this.  Reduced fees would not only make DeCas more attractive but also broaden their accessibility.  Until then, the high costs might deter users who prioritize affordability over complete decentralization.

[Abiky]

I think most of these scaling solutions failed to address how to reduce the size of smart contract interactions, which is why even though the base fee is low, any interaction costs a lot of money. Another reason is simply because the demand is too high and most people are fine paying that much fee for them. If a platform can package an interaction without incurring any fee and then take the fee when the user finishes their activity, maybe we will see cheaper fees on platforms like DEXs, decentralized lending platforms, etc. The fact that new products go live once in a while, and while it is not yet mainstream, shows that the demand will likely stay as long as privacy-conscious people exist.

Interactions only cost a lot of money if they depend on limited Blockchain resources. Leaving the execution part off-chain, while putting ordinary transactions and consensus on-chain, is the best way to help scale dApps. Something like what Avalanche is doing with its 3-layer system (consensus chain, transactions chain, smart contracts chain). Decentralized gambling has the potential of replacing centralized gambling in the future. It's just that developers aren't putting much effort into it. Especially now that regulations are tightening each day.

With fear from governments, I'm afraid decentralized gambling will remain a niche to traditional gamblers. One can dream, right?

[tygeade]

Gamblers is now more confident with casino license than decentralized games since common gambler still doesn’t understand how smart contracts works and how to verify probably fair games.

Besides most of the cool games from 3rd party providers is from centralized casino. So unless decentralized games can match how cool the games on centralized casino, I doubt gamblers will choose decentralized over centralized casino. Most of the games on decentralized casino is more on common simple games. I’m not sure what’s the current game version they offer but I doubt they can match centralized games.

I would say it is a bit about the potential to have a loophole somewhere in the code as well. We have see plenty of decentralized exchanges and many decentralized projects that got "hacked" basically, one way or another people find a problem in the code and take out all the money in there. So when you are gambling, your money stays there for a while, not instant, and that doesn't feel like it would be fair to wait it out and hope that hackers don't get involved.

On the other hand, I have seen Stake got abused many times, most recently something like 40 million was gone, and they still keep going so that means you are capable of withdrawing your money no matter how much money they lost. This trust is the biggest reason for me.

[Pumared]

I still prefer to casino than decentralized gambling dApps. I don't have a problems if the casinos asked me to do KYC before I can playing gambling or asked that when I want to withdraw the money. But before I choose the casino, I will read their TOS to know what their rules. I don't playing gambling at the decentralized gambling from a long time ago because I already saw the gas fees becomes higher and I can't pay that gas fees. But maybe there are decentralized gambling that doesn't use just ETH or use coins that have a cheap fees.

I believe that only the ETH network is so congested or has high fees. But you raised a point that is really important. Relying on blockchains with high fees ends up making betting unfeasible

[temple]

I still prefer to casino than decentralized gambling dApps. I don't have a problems if the casinos asked me to do KYC before I can playing gambling or asked that when I want to withdraw the money. But before I choose the casino, I will read their TOS to know what their rules. I don't playing gambling at the decentralized gambling from a long time ago because I already saw the gas fees becomes higher and I can't pay that gas fees. But maybe there are decentralized gambling that doesn't use just ETH or use coins that have a cheap fees.

I believe that only the ETH network is so congested or has high fees. But you raised a point that is really important. Relying on blockchains with high fees ends up making betting unfeasible

Unless someone is really betting very high stakes, the fees in the ETH network are indeed making decentralized betting apps unfeasible. One of the biggest problems is that the fees or the congestion in general can hardly be predicted. The fees are super volatile.

When Augur was still around, I doubt that it would have worked well if the fees had been like they are now. Back then there were times with super high fees already and I wondered how a prediction market would actually get off the ground if the goal is usually to bring as many participants as possible to the application. The more people there are, the better these prediction markets would work, but ETH seems to not be the right platform for this.

[Abiky]

Unless someone is really betting very high stakes, the fees in the ETH network are indeed making decentralized betting apps unfeasible. One of the biggest problems is that the fees or the congestion in general can hardly be predicted. The fees are super volatile.

When Augur was still around, I doubt that it would have worked well if the fees had been like they are now. Back then there were times with super high fees already and I wondered how a prediction market would actually get off the ground if the goal is usually to bring as many participants as possible to the application. The more people there are, the better these prediction markets would work, but ETH seems to not be the right platform for this.

Do Layer-2 networks such as Base and Optimism ring a bell? ETH can already scale to millions of TPS. At least, using one of the aforementioned off-chain scaling solutions. On-chain speaking, you'd need to wait until gas fees decline to make your bet. With developers working hard to address ETH's scaling issues, you can feel confident fees won't stay high forever.

I've always wondered why a decentralized prediction market like Augur lost its luster. Even with the high fees, that wouldn't have stopped someone from creating a fork on another chain with lower fees (or L2 network). Decentralized gambling holds great promise to revolutionize the gambling industry. But with high fees and low popularity, it will only remain a niche for gamblers. I'm afraid centralized gambling will continue to dominate the industry for long. The future is unpredictable, so we can only hope for the best.