Over the last few years, the online casino industry has grown and evolved beyond anyone’s wildest expectations. The Covid-19 outbreak might have contributed to this increased interest in online gaming platforms. As people were forced to remain indoors, they had to find new forms of entertainment, and playing online casino games was one of them.
However, another aspect of the story is how cryptocurrency is also playing its part. After going through a difficult couple of years, the metaverse is once again rising. If the industry continues to grow this way, all the new games might soon be incorporating cryptocurrencies, such as Ethereum.
The Rise of Cryptocurrencies in Online Casinos
Using cryptocurrencies to play online games, also called crypto gaming is now making its way into the online casino industry. The promise of anonymity, better security, and faster transactions are all desired traits when it comes to online gambling.
As such, a few years after the invention of Bitcoin, a few forward-thinking platforms were already accepting it, and this marked the start of what would soon become a global trend. When Ethereum arrived on the scene, its offer of creating and executing smart contracts seemed perfect for use in online casinos. The rest, as they say, is history.
What Is Ethereum?
Ethereum was introduced in 2015 and is the biggest competitor of Bitcoin. Ether, as its crypto coin is called, is more than just a currency. Many consider Ethereum as the “world computer.” This is due to its ability to create and execute smart contracts. It is a blockchain-based platform that is used to compensate analysts who validate work and perform essential computations on the Ethereum network.
How Does Ethereum Differ From Bitcoin?
Both Ethereum and Bitcoin operate on blockchain technology, but there are some important differences you need to know, such as:
- Ethereum was designed as a platform to run code for any decentralized application, while Bitcoin is considered an alternative to fiat currencies.
- The transaction speed for Ethereum is much faster at a block every 12 seconds compared to that of Bitcoin, which is a block every 10 minutes.
- Unlike Bitcoin, Ethereum can be used to create and execute smart contracts (self-executing contracts of terms of agreement between two parties).
- Ethereum does not have a maximum supply limit, while Bitcoin is capped at 21 million coins.
Benefits of Ethereum Online Casinos
The benefits of online casinos, such as improved accessibility, are well known. However, most people do not understand why they should consider using Ethereum when playing online casino games. Here are five benefits of Ether that you need to know:
- Innovative Gaming Experiences
Complete fairness and transparency are both welcome innovations in online casinos. If you want a different gaming experience, where you can verify game outcomes in real-time, you can consider using Ether.
- Greater Anonymity
Paying using Ether does not guarantee complete anonymity, but it does have a greater degree of privacy than when using fiat currencies. A great example is that players paying using Ethereum do not need to provide any banking details to the casino.
- Enhanced Security
With the threat of cybercriminal activity ever-present, the encryption and verification process used by Ethereum provides additional layers of security for players. The tamperproof nature of blockchain technology is welcome in online casinos dealing with huge sums of money.
- Lower Transaction Fees
Compared to the high transaction fees when using credit cards, bank transfers, or other fiat currency payment options, decentralized Ethereum payments are a lot more affordable.
- Faster Transactions
Finally, one of the best features of Ether is the speed of transactions. Instead of waiting days for deposits and withdrawals to be confirmed, as is the case with fiat currencies, Ether transactions can be verified in minutes.
The Technology Behind Ethereum: Role of Smart Contracts
While there are many great things to say about Ethereum and its cryptocurrency, Ether, the real game changer is its role in creating smart contracts. This technology is one of its most defining characteristics, and is what sets it apart from Bitcoin.
Every transaction that is conducted on the Ethereum network is grouped into a block before being verified by network participants and added onto a secure blockchain. As soon as the transaction has been recorded and added to the blockchain, it cannot be tampered with or reversed, which brings a lot of transparency and additional security.
When used in online casinos, smart contracts can play a huge role in the following ways:
- Providing automated payouts by ensuring instant withdrawals and deposits
- Improving fairness and transparency when playing casino games
- Eliminating the need for intermediaries in peer-to-peer betting agreements
- Providing a cost-efficient way to operate online casinos
Potential Risks Associated With Ethereum Casinos
It is clear that using Ethereum in online casinos offers many benefits to users, but this does not mean the technology does not have any challenges or drawbacks. This is still considered an emerging technology, with many issues that still need to be ironed out.
If you are considering using Ether in online casinos, consider the following potential risks involved:
- In case of disputes between the player and the casino, there is no governing body to turn to for recourse when using decentralized currencies, such as Ether.
- If the code on which Ether smart contracts are based is not secure, some vulnerabilities may be exposed, which may mean that the security of the network will be compromised.
- There have been some technical challenges on the Ethereum network in the past, with users reporting slow transaction times and high volumes of congestion.
- As with all cryptocurrencies, the price of Ether can be very volatile, which can affect the value of your winnings.
- There are still a lot of question marks regarding the regulation of cryptocurrencies, with many jurisdictions undecided about how to regulate the industry.
Ethereum Is a Big Part of the Future of Online Casinos
If you are thinking about joining the growing online casino industry, consider using Ethereum as your preferred currency. On platforms such as Bet999, you can use Ether for deposits and withdrawals while playing popular casino games, such as roulette, poker, and blackjack.
