Ethereum 2.0 also known as ETH 2.0 is a new and improved version of the Ethereum blockchain network and cryptocurrency. It uses a Proof of Stake rather than a Proof of Work consensus mechanism. It’s a significant improvement when compared to the previous version and it’s already found application in various industries.
Some of the most popular ETH gambling sites use the 2.0 version as it has numerous features that are uniquely suited to the wagering industry. In this article, we’ll dive deep into how Ethereum 2.0 is impacting wagering.
Scalability is the most important feature of Ethereum 2.0 and one that will most impact how it can be used. It uses the concept called “sharding” to provide a stable network that can scale and expand as it gets more users.
Ethereum 2.0 can process multiple transactions at the same time allowing for more users and more payments. Online casinos will benefit from these features as they are looking forward to accepting more players and allowing more micro-transactions within a game.
From the player’s point of view, the use of Ethereum 2.0 leads to stable transactions regardless of their size and frequency and it provides a wider player pool.
Using Ethereum 2.0 allows for faster and smoother transactions. This is important for players as it makes the game seamless and easy to follow. Transactions are faster regardless of how much a player is depositing or withdrawing and regardless of how many transactions there are within any given game.
This will change how the players wager and allow them to make faster decisions and change their bankroll management practice. It doesn’t always have to be a good thing because adding more funds to your casino account becomes easy and can be done at any time. This ability can lead to players taking on more risk.
Lower Transaction Costs
The biggest expense for those using Ethereum to wager online is the energy consumed in the process. The users cover it through fees paid on each transaction. Casinos that use Ethereum 2.0 have much lower transaction fees than those that use the original version.
This is because Ethereum 2.0 uses Proof of Stake rather than Proof of Work. It consumes much less energy as there’s no mining involved. Cost-effective wagering is especially important for players who wager small sums since the fees cut a lot into their winnings.
Ethereum 2.0 provides a better security system than the initial version. This is an essential feature of online casinos since it creates the loyalty and trust that the players have come to expect from online wagering establishments. Players from all over the world are using online casinos and it needs to be safe for them to trust the establishment with their wagers.
Ethereum casinos prevent double spending as well as hacker attackers to the rate of 51 percent more when compared to the Ethereum 1.0 version.
High Transparency Levels
Casino games need to be transparent about the odds they are providing and informed players take that information into account when choosing which game to play. The most important statistics to keep track of are the return to player rate and the volatility rate. It tells the player how risky the game is and what the casino edge is.
Casinos that use Ethereum employ smart contracts and open code. This means that each player can easily learn about the terms of the wager, which is written into the code. Transparency such as these fosters a sense of trust between a casino and its users.
Decentralized Casino Platforms
Decentralized casino platforms (DAapps) use blockchain technology which supports Ethereum 2.0. It creates a casino platform without a centralized structure. DAapps allows casinos to operate without intermediaries. It opens up new possibilities in terms of gameplay and user experience.
Besides other features we already discussed, DAapps also provides more diverse games and tokenized digital assets. In-game purchases and mini-games created this way provide a mix of video games and traditional casino games, which is appealing to younger players and makes the gameplay more dynamic.
Decentralized casino platforms have many advantages but they are still dealing with problems such as regulatory compliance, scalability, and adoption. The use of Ethereum 2.0 will help with all of these in the years to come.
With Ethereum 2.0 online casinos will have an easier time integrating different blockchain networks cross-chain assets. This means that online casinos are becoming more liquid and the wagering pools are becoming wider. Players that use Ethereum online casinos can therefore win bigger wagers and wager against players with deeper pockets.
It also helps with risk diversification. Casinos that allow players to use assets across different platforms lower the risk of fluctuations and vulnerabilities impacting their only platform. In the end, cross-chain integration creates a seamless experience where it’s easy and safe to transfer assets from one platform to another.
Increased Use of NFT
The use of Ethereum or NFT helps online casinos integrate the so-called Non-fungible tokens (NFTs). Tokens are a form of digital assets that represent ownership or proof of authenticity. Unlike cryptocurrencies, tokens are not fungible meaning they can’t be exchanged on a one-for-one basis. That way each token presents a unique ownership.
The use of NFTs in Ethereum casinos can enhance the gaming experience and introduce new streams of revenue for the players. Some casinos provide them as bonuses and rewards. Others used to purchase digital assets such as skins or themes. There are also casinos that use NFTs as they would any other currency.
Ethereum 2.0 has an improved network performance. This means that casinos that use it as currency can attract more players from regions of the world that were otherwise unavailable. There are parts of the world with a growing middle class. They present a valuable player pool with a growing disposable income that casinos are looking to attract.
Ethereum casinos are especially well suited for it since they allow for fast and secure transactions regardless of where the players are. There are also many other uses for Ethereum that players will appreciate.
Ethereum 2.0 brings a few innovations to the world of online wagering. This will reflect on the regulation since the regulatory establishment is always looking to catch up to the realities of online wagering. With the wider adoption, the industry is getting more regulated.
There are upsides and downsides to this fact. A more regulated online wagering industry is taxed heavier and there’s less freedom the crypto players are used to.
To Sum Things Up
Ethereum 2.0 presents an improvement over the Ethereum 1.0 version of the blockchain-based cryptocurrency. The innovation has found its way into many different crypto casino games and establishments, as it’s well-suited to the needs of this industry.
Online casinos that use Ethereum 2.0 as their payment option of choice provide a safer, fairer, less costly, and overall better service than they could before. The use of Ethereum 2.0 also provides a wider pool of players and provides a chance for casino games to innovate and include new in-game services. New features will also lead to increased regulation.