One of the biggest draws to the crypto currency Bitcoin is that, despite its volatility, it has been said to be a very secure form of currency. With its current rise across a number of industries around the world, particularly in online gambling sites, it is easy to see that the Bitcoin currency is here to stay.
The Bitcoin protocol provides an anonymous environment through a peer-to-peer exchange network, meaning that Bitcoins and Bitcoin transactions are not tied to any form of identity. However, some people are more concerned about the security of their Bitcoin wallets than their anonymity. There have been a number of instances where large scale thefts, such as the issues with Mt. Gox in 2014, have occurred and currency has been stolen from Bitcoin wallets, but Bitcoin enthusiasts are very quick to defend the currency. Many of them remain firm in their opinion that the thefts wouldn’t have taken place unless the Bitcoin wallet holder did not take the necessary precautionary measures to keep their private key and Bitcoin wallet secure.
Here, we’re taking a look at the security behind the Bitcoin currency itself and exploring the precautionary measures Bitcoin gambling sites take to protect their customers.
Encryption & Security With Bitcoin
Bitcoin is the leading crypto currency available across the globe, and because of the nature of digital currencies, cryptography is a key element. The cryptic elements of the Bitcoin protocol mean a secure and majorly anonymous environment is created. The encryption that its ‘Proof of Work’ system (PoW) uses is SHA-256 encryption and it is used throughout the entire verification system. The transaction blockchain itself is also exceptionally secure due to its structure. The decentralisation of the currency also means that outside organisations like governments do not have control over the currency, and therefore will not be able to take funds before they are withdrawn to your Bitcoin wallet (although there have been instances of the FBI seizing Bitcoins used to fund criminal activity).
Bitcoin Gambling Sites
In order to retain the element of security within the Bitcoin environment, the most reputable and trustworthy Bitcoin casino sites help to protect their customers’ anonymity by ensuring that they do not need to provide any personal information when signing up for an account. Unlike regular online casinos who require a number of different types of identification, Bitcoin gambling sites only require at the very most an email address, username and password. From there, the entire process is the same, showing that Bitcoin has the potential to change the online gambling world by providing a more anonymous and secure environment for players to enjoy. With no personal information stored on the online site, there is little-to-no risk of any identity fraud taking place through hacked accounts.
Wallet Storing
The way that a person manages their Bitcoin wallet is an important part of how they can keep their Bitcoin secure. Whether they are using Bitcoin for gambling sites or for any other reason, the different ways that people store and manage their wallets can have a big influence on how safe they are. There are three different ways people can store their Bitcoin wallets. One of these methods involves printing the wallet and storing it offline, with both a private and public key printed onto the paper wallet. However, if this is lost the Bitcoins stored within the wallet will be lost forever, which is why this isn’t the most commonly used method of securing Bitcoin wallets.
Another form of offline wallet is hardware wallets. These are some of the most secure as all of the key information is stored completely offline in hardware and all of the key data is stored in a protected area of a microcontroller. This protected area is ultimately immune to software and viruses, which stops them from being stolen like they might be on normal computers. Alternatively, Bitcoin wallets can be stored online, in a similar way to how PayPal wallets work.
The security behind Bitcoin online casinos isn’t perfect, but it certainly offers an entirely new experience for anonymous and private game play. While Bitcoin is still in its infancy, the more it develops and increases in popularity, the better the security levels are likely to get, particularly on sites like online gambling sites.
