Crypto Casinos: Unpacking the Hidden Architectures

Crypto casinos are often misunderstood as having a single architecture, but in reality, they can operate on different technology stacks. The term 'crypto casino' is deliberately broad and refers to any gambling product that involves cryptocurrency somewhere in its stack.

When evaluating a crypto casino, it's essential to separate the payment rail from the internal infrastructure and game verification system. Each layer carries its own trust assumptions, and blockchain support at one layer doesn't necessarily imply security or fairness at others.

The three primary architectural models of crypto casinos are: Model 1, where cryptocurrency is used as a deposit and withdrawal rail; Model 2, which involves custodial funds with an internal balance denominated in cryptocurrency; and Model 3, where smart-contract or blockchain-native games run on-chain. A single platform can combine all three models.