Why Most Crypto Casinos Choose Ethereum Over Other Chains

The online casino industry is constantly looking for ways to improve the service and experience it provides for customers, and crypto casinos are some of the most flexible options. Not only do they provide easy access for people around the world, but crypto casinos can also facilitate faster transactions and lower fees. Online gambling specialist Alex Hoffmann has curated an Ethereum casinos list because of the countless benefits the network offers over other chains, making ETH a leading option for developers. 

Smart Contract Capabilities

Ethereum smart contracts are a way for transactions to be automated by storing self-executing code on the blockchain. This allows dApps (decentralized applications) to automate processes without the need for intermediaries. 

Transaction automation and trustless agreements help to streamline processes, while the immutable nature of the blockchain and its transparency offer an additional level of security and peace of mind.

Large Developer Ecosystem

Ethereum’s large and diverse developer community ensures the chain’s development remains at the cutting edge, and this ecosystem has been noted as being one of the platform’s biggest strengths. It has the largest number of active developers among any blockchain platform, with more than 5,000 contributing every month and many tens of thousands more contributing occasionally.

Its expansive range of open-source libraries and tools is an attractive option for developers and makes the creation of dApps significantly easier. Developers work to ERC standards, helping the interoperability of tokens and dApps developed on the platform.

Liquidity

The liquidity of native Ethereum coins makes it an excellent option for online casinos, where the ease with which consumers can buy or sell crypto is an essential part of its attraction. Ethereum’s high liquidity ensures large transactions can take place without causing too much volatility in its value. 

Less volatility provides greater stability for consumers and businesses, helping the cryptocurrency expand its reach and providing an attractive alternative to Bitcoin.

Large User Base

Ethereum is second only to Bitcoin in terms of users, and this existing base is something that crypto casinos are keen to take advantage of. As crypto continues to enjoy political backing and improvements to infrastructure, established options like Bitcoin and Ethereum are becoming more widely accepted by businesses and service providers.

The Ethereum blockchain also hosts a variety of stablecoins, and these options offer even greater stability as they are pegged against the value of fiat currencies, including the US dollar. Some of the most popular stablecoins on Ethereum include USDT, USDV, DAI, and LUSD.

Strong Security

Decentralization is a key factor for crypto users, with the network being much more difficult to infiltrate because there is no single entity that controls it. Data and transactions are immutable after being recorded on Ethereum, meaning information can not be deleted or altered, minimizing the risk of fraudulent activity or retroactive changes. Because these transactions are publicly visible, it means that external audits can take place against anyone using the platform to determine how fairly they are operating.

Proof-of-stake helps to incentivize honest behavior and penalize malicious activities, while smart contracts are programmed in a way that cannot be altered, censored, or interrupted. The platform’s robust developer community has also helped to protect and improve its defences, and it has the benefit and experience of running since 2015.

Open source tools and best practices help the community to ensure secure development, and the chain’s finality mechanism protects the network if it falls under attack. It also supports Layer 2 security networks, including Optimism, Arbitrum, and zkSync, which offer fast transactions while inheriting the base security of Ethereum’s system.

Fast Transaction Speeds

Ethereum’s base-layer speed would not be considered fast on any metric, offering a 15 to 30 TPS rate. This is because Ethereum initially prioritized security and decentralization over speed, with all transactions being verified and agreed upon by all nodes. However, layer 2 protocols can reach speeds of around 2,000 TPS.

Further developments should be able to build on this and offer even greater speeds with lower fees that can help with global demand. 

Transaction speed is a priority for many bettors, with deposit speeds determining when they can place bets. Being able to withdraw winnings quickly is another benefit that can attract users to certain operators.

Lower Fees

Like transaction speeds, Ethereum’s layer 2 fees are not the best, with transfers typically costing between $1 and $10+, contract deployments averaging between $100 and $300, and token swaps typically being charged between $10 and $50. Thankfully, layer 2 fees are typically below $0.10, making it a much more affordable way for customers to deposit funds and withdraw winnings.

Conclusion

Ethereum’s layer 2 is providing crypto casinos with a fast, secure, and low-cost way for customers from around the world to access the latest casino games and enticing offers.