Blockchain gambling, and typically the blockchain itself, presents an interesting contradiction.
It often attracts users seeking privacy, as Londoners can make bets without handing over personal details or bank cards.
After all, a wallet address is just random characters.
We’re often told crypto is anonymous, yet its foundation is a radically transparent public ledger.
So, which is it, and how private can betting with cryptocurrency for London gamblers truly be?
Why blockchain isn’t inherently private
Blockchains like Bitcoin or Ethereum operate on a public ledger, which can be thought of as a global digital spreadsheet which is accessible to anyone.
Every transaction, including bets placed or winnings received, is permanently recorded.
Users aren’t identified by name, but their alphanumeric wallet addresses is there for all to see.
This is pseudonymity, not true anonymity.
It offers a veil but not complete concealment.
Londoners can use tools called blockchain explorers to view these transactions and track the flow of funds between addresses.
Of course, you’re still not going to be “exposed” unless they can put a name to the address.
The “anonymous” appeal
The perception of anonymity largely stems from comparison.
Traditional online gambling sites typically demand Know Your Customer (KYC) verification, where London gamblers submit ID or address proof and bank details to get an account.
Many crypto online casinos however allow users to start playing with minimal or no upfront personal information.
Connecting a wallet and placing a bet feels detached from a real-world identity, because it kind of is – until it isn’t.
How pseudonymity can be compromised
Your blockchain pseudonymity shatters when your wallet address is linked to your real identity, but how might this happen?
The most common connection point is cryptocurrency exchanges , which often have rigid KYC.
This is how most people get the crypto in the first place, via fiat currency, as well as cashing out any winnings.
Of course, these exchanges have a duty of care with your data, but it doesn’t mean that the exchange cannot experience a hack, breach, or unscrupulously sell data.
Technically, there’s a traceable path, but it may never amount to much.
Perhaps more concerning are sophisticated blockchain analysis firms, which can track transactions, clustering addresses to potentially deanonymize users.
Mistakes like posting an address online (e.g. you’re taking donations on your blog or doing paid work on Reddit forums), creating a direct link to you (or your social media accounts).
Chrome extensions that interact with wallet addresses may also be compromised, albeit unlikely.
Seeking true anonymity
For most Londoners, the best crypto casinos generate enough privacy for it to be preferable to ordinary casinos.
But to go the extra step, as many enthusiasts do, towards greater privacy, measures can be taken.
Firstly, the wallet you use for deposits/withdrawals at the casino could be a new, clean wallet that isn’t your personal one.
Consider funding it with carefully vetted peer-to-peer platforms or crypto ATMs.
Coin mixers and tumblers can do a reasonable job at obscuring transaction origins, though they carry their own risks, as you may be getting caught up and associated with bad actors (e.g. your funds mixed with theirs).
Some may be scams too, and some exchanges may blacklist mixed coins.
Some coins are more private than others too, and VPNs can mask your IP address from the website, which is another data point that can be used to trace users.
And, the best crypto casino is the one you can trust the most with your data.
Balancing privacy and transparency
In most of the ways that matter (e.g. activity not showing up on bank transactions, mortgage applications, etc.), a crypto casino offers more anonymity than ordinary casinos.
But, if London gamblers truly want anonymity, they have to work for it, and they must always be aware of the transparent nature of the public ledger.
Picture credit: Free to use from Unsplash
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