Ethereum vs. Bitcoin for Online Gambling

Ethereum vs Bitcoin for Online Gambling

In the world of online gambling, the cryptocurrency that you use makes a bigger difference than you might think. By looking at the key elements of Bitcoin (BTC) and Ethereum (ETH), we can see how some fundamental differences between the networks define how you gamble.

The Key Differences Between These Networks

BTC is a simple, highly effective alternative to fiat currencies. It’s often forgotten that the original white paper was called Bitcoin: A Peer-to-Peer Electronic Cash System, meaning that it was created solely with decentralized transfers in mind. The Bitcoin network isn’t designed to do anything other than send money between wallets.

On the other hand, Ethereum is a vast, programmable platform where developers can build DApps or smart contracts directly onto the blockchain. This fundamentally different approach means that Ethereum can be used to deploy specific games and run the action, rather than just being the currency you use to make your bets.  

When we look at the games that can be played in cryptocurrency casinos, the currency you use doesn’t matter. You can play exactly the same slots, table games, and instant games, no matter what token you send to your account. This means that it’s really a decision that comes down to which you prefer using and are most comfortable holding.

The Potential Edge Given By Smart Contracts

We need to go back for a moment to look at the main differences between these networks if we want to understand the next point. With BTC, all you can do is send your money to the casino and play games. To be fair, this is all that most people want to do.

However, Ethereum’s smart contract capability means that games could be written directly into the platform. As explained by this online Ethereum casino, this allows a provably fair system to be used that incorporates a number of Ethereum nodes to get a consensus and give a fair, random result every time. This would mean that payouts are automatically sent to your wallet, and you wouldn’t need to rely on the developer and casino operator to prove the game’s fairness.

That won’t matter to everyone, of course, but this kind of casino is gaining popularity because of its credentials. The alternative and more traditional method is to use a random number generator. It carries out the same task of making sure each spin or hand is fair, but it’s done without the game itself being placed on the blockchain. As people’s awareness of the blockchain’s power increases, however, more and more players are likely to start considering provably fair mechanisms as an important element of selecting their casino.

Of course, aspects such as return to player will remain key, regardless of which method is used to create the results, so casinos still need to provide this kind of information. This look at the return to player (RTP) on casino games reveals how to find this important figure, which lets you see how much the game pays out overall. Regardless of the long-term RTP, each individual spin or hand is completely unpredictable.

 

 

Speed and Cost of Transactions

The speed and low fees that are generally associated with cryptos are further key reasons people are choosing them. This is particularly true when you want to use these funds for gambling. Nobody wants to wait around for their funds to transfer before they can start placing bets, while waiting for their winnings to be sent to their wallet would be even worse.

The average block time on both networks varies according to factors such as how many people want to move money at any time. You can take a look at some Bitcoin vs Ethereum data here, with ETH usually having far faster block times that allow transfers to go through more speedily.

Proof of Stake vs. Proof of Work

The proof of stake (PoS) vs proof of work (PoW) debate is one of the most polarizing points in the crypto world. The way that the network is secured doesn’t affect your gambling in any way, so this is simply a matter of personal preference. Bitcoin’s PoW design is sometimes frowned upon because it takes a lot of energy, but it’s a demonstrably effective method that many people prefer.

In the case of Ethereum, the switch from PoW to PoS was famously carried out in a process known as The Merge. This massively reduced the network’s energy consumption, so it may be more attractive to anyone who wants to be more environmentally friendly in everything that they do. Some analysts suggest that Ethereum is becoming more centralized after this development, though.

Other Options

These are just two of the leading digital currencies that can be used to gamble. You could also use Bitcoin Cash (BCH), Litecoin (LTC), or Ripple (XRP). If you prefer the lack of volatility in stablecoins, then Tether (USDT) is a good choice.

The emergence of cryptocurrencies as a way of gambling online has greatly enhanced our options. For many users, ETH remains the best token for casinos, but you should consider the points we’ve looked at before deciding which is right for you.  

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Bitcoin vs Ethereum for online gambling: BTC is simple “digital cash,” while ETH adds smart contracts and provably fair games. Compare speed, fees, and network design before you bet.

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