Cryptocurrency transactions have become a significant part of the global economy, as confirmed by a study from Coinbase, a major blockchain trading platform. Key figures:
- $27.6 trillion — the total turnover of stable tokens, exceeding the volume of operations across both Mastercard and Visa systems;
- $20–25 million — the estimated value of daily transfers in digital assets;
- 25,000 — the number of merchants that accept crypto for goods and services.
For gambling operators, these results suggest that it is time to select a reliable payment supplier that ensures the speed, security, and privacy of flows involving virtual coins.
Casino Market offers a comprehensive overview of the modern crypto gaming field, highlighting the key factors to consider when choosing a niche solution provider.
Challenges and Risks in the Industry
The structure of contemporary B2B models largely determines the dynamics of blockchain transactions.
Digital activities offer the greatest advantages to the commercial segment:
- high operation speeds;
- low prices on technical support for asset processes;
- independence from intermediaries such as various banking and centralised fintech agencies.
The crypto payments vertical has high potential and is capable of competing with fiat currencies as the primary means of settlement.
Wide adoption is hampered by:
- lack of user trust in the early stages of implementation;
- high costs of platform and wallet maintenance without scalability;
- risk of functional failures, including data leaks and disruptions to token flows;
- regulatory restrictions, including account blocking and integration difficulties in certain jurisdictions.
Architecture of Blockchain Payment Systems
Modern crypto services can be divided into 3 basic categories, each with unique features, operational advantages, and incorporation challenges.
Custodial Wallets
In this format, keys are stored and managed by a 3rd-party organisation, such as an exchange, transaction module, or fintech company. Examples of the tools include CoinGate and B2BinPay.
These solutions are among the fastest and most convenient ways to enter the market with minimal risk. Responsibility for the safety of funds lies with the service provider, and account access can be restored using a personal password.
When choosing a custodial supplier, we recommend analysing:
- reserve verification;
- independent audit protocols;
- key storage methods and conditions.
The following mechanisms can confirm reliable protection:
- Hardware Security Modules (HSMs). These are physical devices for generating, saving, and managing cryptographic keys.
- Multi-Party Computation (MPC). The system automatically splits a private password into separate fragments, increasing safety.
- Multi-Sig. To complete a transaction, independent confirmation from each key holder (usually 2–3 people, but the number is unlimited) is required.
The fundamental nuance of working with custodial wallets is the issue of trust. A 3rd party is completely responsible for storing the assets, but such intermediaries can be hacked, go bankrupt, or have clients’ accounts frozen at the regulator’s request. Similar risks exist in traditional banking, but it has been in operation for much longer and has established effective protection mechanisms.
Non-Custodial Services
When connecting to this type of wallet, the business maintains the keys itself. The supplier only provides software and equipment for signing transactions and has no access to client assets.
Examples of custodial gateways:
- Plisio;
- BitHide;
- Wasabi;
- BTCPay Server.
Advantages of working with such solutions:
- comprehensive control over financial flows allows businesses to operate without interference from banks and government authorities;
- only the wallet owner can interact with the keys, eliminating 3rd-party censorship and funds freezing or confiscation;
- the service operates independently of legal restrictions and regulatory blocking;
- gateways do not require the integration of KYC protocols, ensuring maximum transaction confidentiality.
One of the system’s main drawbacks is that password loss or a management error can result in the irrevocable loss of tokens. If an entrepreneur plans to use such wallets, it is recommended to develop options for backing up central controls.
Hybrid Products
Mixed solutions offer the optimal balance between convenience and security. For businesses utilising combined storage tools, everyday transactions are usually processed through channels that are the responsibility of the intermediaries. Nevertheless, the company’s reserves are managed in non-custodial wallets for higher safety.
Examples of hybrid products:
- Coinbase Commerce;
- NOWPayments;
- Fireblocks.
Security Guarantees and Privacy Issues
The quality of built-in protection and data confidentiality technologies influences the choice of a blockchain settlement solution.
Key aspects to consider:
Encryption Protocols
The most common and reliable niche method is AES-256. It provides a high level of information security and is recommended by the American NIST. Industry analysts expect that even quantum computers will not be able to crack the algorithm in the foreseeable future.
Another effective variant is the implementation of SGX enclaves, isolated areas within the processor. They are separated from the main system and used to manage transactions with increased protection requirements. This technology is integrated, for instance, into the Fireblocks platform.
A higher level of financial flow safety is also achieved through client-side encryption. The transaction history and wallet are assigned a unique key, which is stored exclusively by the owner and is not shared with 3rd parties. An example of such an implementation is the BitHide service.
IP Address Protection
Blockchain autonomy is largely a myth. In practice, the Internet Protocol numbers of network participants are publicly available. They can be used to determine wallet activation time, transfer volume and frequency, and the client’s geographic location.
Modern IP address masking technologies are used to preserve privacy. One popular solution is a combination of TOR with VPN to redirect financial traffic. Efficiency can be improved by integrating an algorithm that dynamically changes the identifier after each transaction. Similar approaches are implemented in BitHide and Wasabi.
Customer Authentication
Interaction with any tokens requires access control. The minimum package for any commercial industry includes:
- 2-factor checks (2FA) for logging in and endorsing coin operations;
- secure credentials, such as PIN codes or multi-level login confirmation;
- fingerprint verification with auto-registration of trusted devices and a mandatory request for each repeat entry.
For the iGaming vertical, the best option is hybrid protection, which involves complex authentication. Clients can be offered several variants to choose from, making the gambling platform more convenient to use.
For instance, a casino website might have the following configurations:
- HTTPS;
- PIN codes;
- secret keys;
- onion services;
- e-mail notifications;
- 2FA, and other settings.
Anonymity Guarantees
The blockchain infrastructure is built on transparency, which means that any network participant has access to a vast amount of indirect details about other wallet holders.
Segmenting and analysing this information allows for forecasting:
- asset balances;
- volumes and regular routes of virtual tokens;
- commercial and other relationships between companies and individuals.
To prevent data from leaking, crypto suppliers are actively developing and implementing various anonymisation mechanisms.
The most common methods include:
- using 1-time addresses;
- generating proxy payments;
- forming combined transactions.
Each allows for the disconnection of the link between the sender and the recipient. This approach significantly complicates the tracking and clustering of indirect information.
Specifications of Fintech Infrastructure
For maximum convenience and long-term success, cryptocurrency tools must be scalable and flexible.
Key characteristics of an effective blockchain gateway for gambling:
Adaptability and Multi-Account Functionality
Increasing transaction volumes place an additional operational burden on the system. When selecting a provider, it is better to check in advance whether the platform supports several wallets and workspaces within a single account. A good supplier must also eliminate technical glitches and slowdowns.
Additionally, entrepreneurs are advised to consider the system’s internal limits. This aspect covers not only payment volume but also the number of addresses.
White Label Programs
Such a model enables casinos to establish and deploy financial infrastructure under their brand. The factor can be decisive for companies that want to maintain a consistent corporate style across all operational components.
Before making a final choice, we recommend considering:
- the availability of customised AML checks;
- the accessibility of automated mass payout options;
- the quality and ease of transaction page API customisation.
Levels of User Access
Cryptocurrency gateways must offer various tiers of account management rights, which are crucial for internal casino security and performance efficiency. An example of an optimal solution is a wallet with role-based admission control. This model allows for the customisation of internal staff ranks according to business needs.
Additionally, the protocol can include mandatory double confirmation of transfers: a payment initiated by an employee is processed only after approval by a senior manager with the appropriate rights. To simplify administration, roles can be turned off for standard- and low-risk operations, or preset templates provided by the supplier may be used.
AML and Compliance Practices
One effective way to protect your project against and mitigate financial risks is to filter suspicious activities at the point of entry.
The following algorithms and services are great for this purpose:
- Address checking. The procedure features automatic matching of counterparty wallets with monitoring lists and databases.
- Flow tracking. Even a cursory analysis reveals patterns, such as regular sending of identical amounts, large sums, or mixer-generated packages.
- Know Your Transaction (KYT). It is a method that enables tracing the origin of crypto assets, similar to international KYC protocols.
Smooth Integration: Practical Aspects
Coin operation processing is impossible without a reliable API. Any token-supporting gateway must provide RESTful endpoints, URLs for submitting client requests and interacting with the server. SDK, a set of tools for developing customised software, is another option.
These components operate at the backend level and allow for:
- creating deposit addresses;
- managing financial balances;
- assessing risks and approving/blocking withdrawals;
- receiving automatic notifications about incoming flows.
Manually controlling such algorithms is virtually impossible, especially with large turnovers and irregular peaks of activity.
To simplify deployment and configuration without involving developers, you can use ready-made integration solutions:
- payment pages with branding options or in the basic version from the provider;
- widgets in the form of quick access buttons or similar elements;
- embedded iFrame components.
The Main Things About Crypto Payments in iGaming
Token-based transactions have become a fundamental part of the global economy. Modern offerings rival the security and convenience of leading banking services, and in some respects, significantly surpass traditional fintech products.
When choosing the optimal casino payment system, operators should consider the following aspects:
- solution architecture — (non-)custodial wallets or hybrid modules with extensive personalisation options;
- safety and privacy guarantees — modern encryption methods, IP masking, multi-factor authentication, and transaction confirmation;
- scalability to meet platform needs — branded pages and individual components, flexible configuration of access levels, and live monitoring of suspicious operations.
Feel free to contact us if you would like to discover the intricacies of integrating advanced financial instruments and explore our niche products, which are available for sale and rent.
In addition to fiat, crypto, and hybrid gateways, we offer the development and launch of innovative Bitcoin casino solutions and similar projects.
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