There is a lot of mystery shrouded around exactly how Bitcoin payments are conducted behind the scenes, each time you make a payment. There are plenty of articles explaining what the Blockchain is, what the best crypto wallets are and where to find the best Bitcoin exchanges.
But if you were asked what the process is when releasing a payment, would you be able to explain it concisely? It is our intention to enlighten you around these facts!
It’s very important to know the factors involved, because it is your money and you should want to know how it is treated on the big wide web, especially when being used to gamble with. This article is aimed at educating the gambler on the transaction process involved when making payment of his or her Bitcoin at top online Bitcoin casinos, such as VegasCasino.io.
The inner workings of the blockchain can be a bit technical, so bear with us as we try and make it as straight forward as possible for you.
A SIMPLE EXPLAINATION
If I want to load my Bitcoin Casino account with credits, I need to make a crypto payment to the casino. I do this by publishing my intent to do so in my crypto-wallet software on my computer or mobile device.
The entire Bitcoin network is then scanned to trace that the funds are available and that they have not already been sent. Once they establish the funds availability the funds are released to the recipient’s details and payment is made. All of the information is converted to a mathematical hash (crypto data) and included into a block which is then linked to other blocks in the blockchain registry, making the chain longer.
Once transactions are completed and a block has been created, it cannot be undone, or else changes to blocks linked to it afterwards would have to be changed. Tampering with the blockchain is almost impossible.
HOW THE WALLET WORKS
Bitcoin Wallets do not actually hold my funds like an account, but rather, it carries my Bitcoin address. This address is the register that records all of my transactions and the balance in my account.
The address is a 34-character long code known as a public key. It is called this, because the public may have access to it in much the same way that they might have access to my bank account number. The only thing they can do with this address is credit my account.
Nobody can access my Bitcoin without my private key, which is basically a signature that authorises the payment of crypto currency to certain designated addresses. A corresponding private key is always linked to a public key and contains a 64-character key pin. This private key must not be known by anyone, lest you want to lose your crypto currency.
VALIDATING THE TRANSACTION
Once I have entered the casino’s details and validated the transaction with my public key and private key, it will produce a digital signature and then run through my address history to ensure the funds are available and validate the transaction.
This information is then combined and via a mathematical equation, it forms a ‘hash’ for the transaction. The hash is a code of 64 characters which represents all of the information introduced into the transactional equation (no matter how much data is introduced, it will always be reduced to 64 characters). If I had to change so much as a letter, a comma, or a dash in the data, the hash would alter significantly.
The hash is then transferred into a block with other bits of information from preceding blocks forming the code. This block is then linked to the overall blockchain (Bitcoin register), effectively lengthening it. This is a very effective way of confirming that the blockchain has not been tampered with, because the hash can be compared with blocks before and after it.
TAMPERING IS ALMOST IMPOSSIBLE
It is virtually impossible to tamper with the blocks within the blockchain. The reason for this is that the blocks that come after my current block receive information towards forming their hash from the block that preceded it.
So, if I changed the makeup of my block, it would mean that I would have to change the makeup of the block after it and the block after that, etc. If you take into consideration that by the time I have only halfway changed the current block, more blocks have been added to the chain, you can see why it is near impossible to tamper with the registry. It is not totally impossible, but rather is very difficult to do, even as a group of hackers.
In order to reverse a transaction made to your casino, you will need to apply for a withdrawal of your funds or appeal to the management of the operation. This is also why it is imperative that you input the correct public address for the online operator in the transaction, or else you might never see that money again.
This can also be used to your advantage. A casino operator cannot use as an excuse the fact that a pay-out was made to you, when in fact it was not. The blockchain is the ultimate proof of payment that cannot be misplaced or altered.
Because the blockchain is purely hung up on codes and keys, you need not divulge your identity when gambling. All that most operators are interested in is an email address, username (make one up) and a valid Bitcoin public address key.
Of course this opens things up to other sorts of corruption and crime, but for the average online casino goer, it protects their identity from fraud and keeps their gambling affairs private.
By being informed about the intricacies of Bitcoin transactions, you will be more confident in the way in which you conduct your crypto business online.
For those of you that have been reticent to make use of crypto currency, hopefully this article has put your mind at ease. We know that an informed people are a happy people and if by this article we will have created more happy gamblers, then our goal has been reached!
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