The online casino gaming sector has benefited from the implementation of several new technologies over the years, as the ever-expanding industry seeks to gain a competitive edge and keep players happy and their experiences unique. Advances in online security have created a safer environment for casino gaming while high-quality live streams have brought live dealers to the screens of mobiles and laptops across the globe.
Recently, more online casinos have allowed cryptocurrency as a payment method and have used the blockchain to improve their platforms. Indeed, online casino gaming and cryptocurrency are two industries that go hand in hand.
The Advantages of Cryptocurrency Gaming
Some online casinos offer players the opportunity to deposit and withdraw using Bitcoin and other cryptocurrencies like Ethereum. For the casino operator, this can bring in a new segment of the market — attracting those players who wish to use their cryptocurrency — but using cryptocurrency also has its distinct advantages.
- Transaction fees can be lower, and withdrawals and deposits can move between digital wallets in seconds.
- Opening accounts and depositing can be simpler, with less need to fork over email addresses and personal ID.
- Players in countries where casino gaming is restricted may access cryptocurrency games.
Blockchain technology can offer additional benefits to an online casino platform as well, allowing players to check the fairness of shuffles and outcomes, and ensuring the random number generator is validated on the blockchain.
Bitcoin Ahead in Adoption
Bitcoin was the first cryptocurrency to be used at online casinos and is still by far, the most common coin in the world, with a market share of over 40 percent. Though there are over 700 cryptocurrencies out there now, you can’t use them all everywhere.
If an established online casino accepts cryptocurrency payments, then the odds are Bitcoin will be high up on the list, and may in some cases, be the only option. Land-based casinos are already adopting Bitcoin, too, though mostly on the front desk and for peripheral services. Also, many online casinos accept Bitcoin for deposits.
The downside to Bitcoin’s popularity is that transactions can take longer to validate on the blockchain. This drives up fees and almost defeats one of the purposes of using the coin as a deposit and withdrawal method in the first place. At least for the time being, the higher transaction times and fees leave a gap in the market. Enter Ethereum.
Faster Transaction and Smart Contracts
Ethereum is the second most common cryptocurrency, and its technology aims to improve upon Bitcoin. Right now, it offers faster transactions and lowers fees, making it more ideal for online casinos to use as a deposit and withdrawal method.
Ethereum isn’t as far along in the adoption process as Bitcoin, so you might find it more difficult to find an online casino that accepts the coin, though there are plenty out there.
Still, Ethereum also offers extra features that further facilitate the bond between crypto and the casino. Smart contracts enable the automatic validation and fulfillment of transactions, meaning players are paid instantly to their e-wallets following a win.
Casino operators can build entire platforms using smart contracts, reducing costs that can be passed on to the players as a reduction in the house edge. Operators can even release Ethereum-based tokens for use on the site, creating a whole casino ecosystem using the Ethereum network.
For the moment, Bitcoin is the king when it comes to online casinos due to its popularity and adoption. It is the coin that you are most likely to use on most sites. However, Ethereum is gaining in popularity and offers many unique features that can further enhance the gaming experience. However, many sites that accept cryptocurrency will likely accept multiple cryptocurrencies.