No one can deny that digital currencies and blockchain technology are great complements in the online casino scene. From quick payment processing to fair gameplay and secure gaming ecosystem, crypto casinos have a huge impact. Most online casinos embrace the use of Bitcoins. However, there is a notable increase in the adoption of Ethereum.
The supreme reason being the view that it has faster transactions. Besides, it is cheaper and higher scalability. The three are critical in the online betting industry that simplifies a substantial amount of data. A casino that similarly accepts Ethereum functions to traditional gambling platforms in terms of deposits and cashouts. Besides, you still access the available casino games. However, the difference comes in registration.
Traditional casinos require a lot of information from players as they sign up. But Ethereum casinos only require your email address. You enter your username and password. Moreover, the casinos allow you to make virtually instant payments. But where is the contrast between Ethereum casinos and Bitcoin casinos?
Comparison of Ethereum and Bitcoin
Block size
Block size is crucial in the comparison of ETC and BTC. It determines several things, including the cost of transaction and duration of confirmation. The Bitcoin network at the time of this writing has one-megabyte blocks.
But some disputes led to the development of Bitcoin Cash. The intervention is a fork for BTC, an increase of the block size to eight megabytes. However, BTC maintained its block at one megabyte and went further to implement a soft fork, SegWit, which is short for Segregated Witness, to raise the number of transactions that a block can handle.
The block size in the Ethereum network is in gas, and a single one has a limit of 12.5 million gas. But that is an increase of ten million. The motive was to raise the processing capacity and lower fees.
Transaction fees
Transaction fees are a major differentiating feature between the two digital currencies. Every transaction on Bitcoin is subject to a fee that goes to the miners. They are the ones who verify transactions and classifies them into a block.
On the other hand, Ethereum uses the gas hypothesis that is in ETH pricing. Interactions in its blockchain need arithmetic effort where gas pays for the computation. Take, for instance, the transfer orders. They require little effort. However, sophisticated interactions involving smart contracts require more gas. Therefore, the cost of an ETH transaction relies on how complex it is in addition to the price of the gas.
Latest trends
2020 has been a good year for the two cryptocurrencies. Bitcoin improved from 7500 dollars as 2019 came to an end to 12,000 dollars on 18th August. On the other hand, Ethereum has risen from 140 dollars to 475 dollars on 2nd September.
To understand the above major distinguishing features, let us have a comprehensive review of Ethereum casinos and Bitcoin casinos.
Gambling fees
Crypto casinos like Pokie Pop have no deposit or withdrawal charges. However, you have to pay the blockchain fees. The mining fee is payable in that transaction.
Besides, there is a deductible fee when withdrawing funds to your wallet. However, crypto casinos tend to be fair, and it is rare to find them take anything above the real time blockchain charge.
However, the fee in Ethereum differs from the one on the Bitcoin network. Ethereum transactions could be a few cents where Bitcoin could charge x10 0r x100 higher than that. It all depends on the structure of the blockchain protocols.
Deposits
If you are two to compare the two digital currencies, Ethereum carries the day. Its confirmation time is around 16 seconds, whereas Bitcoin will take up to ten minutes. The deposit process is straightforward in crypto sites.
If you are opening an account, it takes around 30 seconds. Of course, you will then move to cash in. If you opt to deposit using ETH, you will see a display of a unique deposit address. You then move to the Ethereum wallet, feed the deposit address by pasting, and send the amount of Ethereums that you wish to Cash-in.
Great crypto casinos will only require a single confirmation to fund your account. Therefore, you can begin to play around 16 seconds later in Ethereum casinos compared to the ten minutes in Bitcoin casinos.
Gambling Throughput
A punter should note that every gaming has its transaction. The background system requires processing of the transaction on the blockchain. Therefore, there could be a challenge in the case of a casino with many players and individual games. In short, the blockchain network has many transactions at a time.
If Bitcoin has a limit of seven transactions per second, what would happen if there is congestion in the network? It takes you back to 2017 when transactions in this network were approximating $40 for every transfer. Therefore, each transaction on the blockchain calls for its distinct fee.
But Ethereum uses a Proof Iof Stake mechanism. Therefore, it can accommodate a lot of transactions per second. The consensus mechanism also leads to substantially cheaper executions.
Gambling Games
Most of the casino games available on crypto sites are from conventional developers such as Microgaming and NetEnt. They provide online and offline services to the traditional casinos and comply with the license issuers.
But crypto sites offer several games from blockchain developers. Provably Fair is a phenomenon that allows developers to create games in collaboration with the blockchain. It guarantees fair games with the randomness of outcome and without manipulation.
Smart Contracts
However, the process of accepting stakes, producing outcomes, and spreading the wins happens in anonymity. Therefore, there is a need for a component known as a smart contract. It assures 100 percent integrity in the Provably Fair games.
Smart contracts are fundamental in Ethereum blockchain, but the case is different with Bitcoins. Furthermore, the Bitcoin network is incompatible with smart contracts.
Decentralization
On the one hand, both Bitcoin and Ethereum are indeed decentralized networks. In other words, no single person or authority has full control over the underlying system. When you play at an online casino, you require a third party. It is usually the site within which you are playing, as it is the intermediate between a player and the casino games.
Therefore, it is the casinos that collect your bets and honor the winning stakes and cash outs. But a decentralized casino does not need a third party since the gaming process is under smart contracts. But as you now know, Bitcoins does not honor smart contracts. Therefore, the aspect of the decentralized casino is in the Ethereum network.
Conclusion
Both BTC and ETH are great for online casinos. Payment processes are relatively quick in the two than through the use of traditional payment methods. Moreover, you don’t need to provide sensitive information to the casino’s site. However, there are several reasons why Ethereum beats Bitcoin when it comes to online casinos. When you compare the two, ETH has cheaper and faster transactions. Besides, smart contracts make it more ideal for punters.
