Security Measures in Decentralized Casinos

December 9, 2023
Security Measures in Decentralized Casinos

As a new way of online gambling, decentralized casinos have appeared with loads of innovative features for players. However, besides all the lucrative bonus offers and unique crypto games, there’s the matter of safety and security measures for players.

If you’ve been reading our guides on best gambling Dapps, you probably know how much we value safety as the most important contributing factor when choosing a site. Still, even crypto-gambling sites have some potential security risks you’d want to consider, so we’ll be addressing all of these in our guide along with how to evade them.

What You’ll Learn In This Guide

  • The line between decentralized casinos and online gambling safety
  • Main types of security risks possible on online casino sites
  • Increased security of crypto gambling Dapps
  • Safety features and benefits of blockchain and smart contracts
  • How crypto gambling sites may help re-shape the future of online gambling security

The Landscape of Decentralized Casinos

The world of Dapp casinos is quickly advancing so it’s only a matter of time before we’ll have more of these when compared to traditional online casinos. To put it simply, Dapp casinos work based on blockchain and cryptographic encryption to provide players with a secure and anonymous experience.

That doesn’t mean you won’t be able to rely on standard SSL encryption and other common security measures used in regular casinos. However, there’s a certain degree of risk when joining decentralized casinos even with all that safety provided by the blockchain.

It’s the lack of regulatory bodies and casino licenses that could reject some players, but the truth is you only need to find trustworthy casinos with the help of industry experts. So, we strongly advise checking our lists of provably fair casinos and reliable crypto gambling Dapps to avoid security risks.

Why Security Matters in Gambling Dapps

You may not even realize how important security is for online casino sites. It’s really bothersome but we’ve heard countless horror stories about players getting scammed for their personal information or even worse their payment information.

And we aren’t saying it’s the operator that does this, but rather online hackers that target casinos with insufficient security layers for cyber attacks. That’s why it’s a good thing that Dapp casinos are safer than traditional gambling sites in general, and when you add the extra security layers we’ll discuss in this guide, it makes a way safer gambling environment.

Core Security Protocols in Decentralized Casinos

Now that we’ve gone through the basics, it’s time we dedicate some time to explain the specific set of factors that influence security measures in Dapp casinos. Not only that, but we’ll tell you in detail how protection works on these sites:

Blockchain Technology

The blockchain technology itself is what makes these casinos so safe and more secure than regular online casinos. In other words, the system is made out of newly-added crypto building blocks and a key advantage is that these are immutable.

That means it won’t be possible for hackers to change their content or steal valuable information as each building block is already safely encrypted when it’s added.

Also, it’s limited as to who can add new blocks and it’s impossible to steal the keys to the code. Being a software code itself makes blockchain a safe network for managing platforms like online casinos, so you can rest assured that these platforms are leak-proof information-wise.

Smart Contracts

We wouldn’t have any gambling Dapps if it weren’t for smart contracts on the blockchain. In other words, smart contracts make the base of crypto gambling since they can be programmed to carry out a certain outcome of the game round.

That outcome is this time completely random unlike RNG-generated slots for example, and that means that players can get a much fairer gaming experience.

Because of that, you can also play those provably fair games we’ve mentioned and even check and verify their gaming results so it means a lot to have a gambling platform with complete fairness. It’s impossible to breach into the program behind this contract, so players can feel secure and enjoy a legit gaming round without any doubts.

Cryptography and Data Encryption

Cryptographic encryption is yet another reason why you should feel safe playing online for your crypto coins. It means that all the information is converted into a code and that encryption is like the SSL encryption on regular online casino sites.

Only this time, transactions are also encrypted as well as the rest of the player data, and they are all stored within the blockchain as a way of player protection. So, you can rest assured that your payment information and personal details are also secure along with the gaming algorithm fairness.

Decentralized Servers and Data Storage

One of the things that can save your private information stored on the site is decentralization. By that, we not only mean in a sense of decentralized gambling sites that require no KYC details but also because all the information is stored on decentralized servers.

So, unlike traditional casino sites, if there’s a risk of cyber attacks or similar threats, you won’t have to worry about your personal information being exposed on the site.

Multi-Signature Wallets

Finally, you have to use crypto wallets to even be able to make crypto casino transactions, and that’s where multi-signature wallets come in. You see, these wallets require multiple authorizations for performing crypto transactions, so it’s impossible to break into a wallet or steal player funds without all the keys.

This represents a much safer option when compared with traditional payment options at regular casinos since your bank account information is way more vulnerable online. 

These secure crypto wallet transactions are the main reason why players can rest assured in the safety of their information on crypto gambling Dapps since the private key is only held by you and you don’t need to expose it when joining the site.

User-Centric Security Measures in Dapp Casinos

Besides the general safeguarding methods that come with crypto gambling sites, there are also some user-focused security measures you can rely on. That’s what makes a difference between a great gambling Dapp and a mediocre platform that’s not worth your time, and we always advise you to look for platforms with proper security methods.

That’s why we’ll take a deep dive into the latter category of safeguarding methods for your convenience next time you join a crypto casino.

Two-Factor Authentication (2FA)

If a site is considered to be good among online gambling Dapps, it should offer you two-factor authentication. This one is not strictly crypto-related since it’s what most major online platforms with a wide user network apply to keep the information confidential.

That’s why it will allow you to have two different ways of authorization over your casino account, and these can be regular log-in and a pop-up verification message on your mobile device.

Regular Security Audits

Standout operators in the crypto gambling Dapp world also rely on the help of third-party companies to vouch for their safety. That’s why you may see seals of approval from brands like eCOGRA or iTechLabs which are independent organizations for testing the fairness of casino software.

Of course, these are not needed for provably fair crypto games, but it’s always a good sign if a site works with a renowned casino fairness company.

User Education and Resources

Last but not least, we have to discuss user education as that’s something we are trying to accomplish with our guides to provide our readers with genuine advice on the latest crypto-gambling trends.

Major online casinos that we’ve mentioned in this post also tend to do that so you’ll be able to find loads of educational materials on using crypto as a casino payment method in general. 

You can find the “Help” page on all of those sites as a way of learning more about the latest security-related innovations.

Challenges and the Road Ahead

While crypto casinos are way safer than traditional online gambling sites, they are still not bulletproof in terms of cyber attacks and safety threats. That’s why you always need proper guidance on crypto Dapps and security trends to stay abreast of the changes and keep your payments and information safe and secure.

The biggest challenge is for decentralized casinos to still find a standardized way of enforcing security measures since it’s not the same for all the sites. Even so, we have high hopes it will happen soon without having to sacrifice the benefits of crypto gambling.

Final Thoughts

Security is a complex term when it comes to online casino sites since just a few years ago, players thought they could feel safe playing at major centralized casinos. However, as blockchain technology advances, we are now realizing how difficult it can be to preserve the safety of your online information, so we hope this guide was helpful to you.

Our team of casino experts also hopes that you’ll be able to find inspiration for picking the safest crypto-gambling sites by picking one from our list, so make sure you consider everything listed in this guide before making a final decision.


  • Is blockchain technology safe for online gambling sites?

    Yes, blockchain is a safe system for online gambling made of immutable and newly-added crypto building blocks, so hackers can’t change their content or steal valuable information.

  • What are the main security measures used in crypto casinos?

    The main security measures of crypto casinos include blockchain encryption, smart contract execution, cryptographic encryption, and multi-signature wallets.

  • Are crypto transactions safe for online gambling?

    Yes, crypto transactions are completely safe for online gambling as you can rely on blockchain and data encryption to act in your favor and prevent data theft.

Author Benjamin

Benjamin is the brains behind the casino review process and an iGaming content writer with 10+ years of experience in the niche. His “outside the box” point of view on online gambling gives him a unique perspective on every piece of iGaming content that he writes. Having been a player himself for years, he’s especially interested in giving true value to players with an objective approach to reviews and properly testing each site with real-money play beforehand. That’s why we trust him to deliver all the essential details to you regarding what he believes is the future of online gaming - crypto and decentralized casinos. Besides testing out new sites and casino games himself, Benjamin is also a free-time BBQ expert (that’s what he believes at least) with a tendency to enjoy a hot summer day sitting behind the grill with an ice-cold beer in his hand.