ETHEREUM CASINO GUIDE of 2022

The main difference or advantage of Ethereum is its smart contract – applications that run on Ethereum’s decentralised ‘world computer’ platform. With Ethereum you essentially have two choices:

1. Play on Ethereum gambling sites with Ether, Ethereum’s currency. This is more or less the same as gambling with Bitcoin, for example.
2. Use smart contracts to wager on Ethereum gambling sites. This means that instead of depositing your funds to the casino’s wallet you send them to the smart contract which pays you out when you win/lose. Your funds are never really on ‘the casino’s side,’ which means that you cannot lose them and the ‘transactions’ are instant since they are not really transactions.

Other advantages of Ethereum are the same as for Bitcoin: anonymity, security and fast transactions. However, do keep in mind that Ethereum is  a very young Cryptocurrency (compared to Bitcoin), so there are much fewer casinos and games that support Ethereum. Also, Ethereum is less user-friendly due to added functionalities and due to the fact that it did not have as much time to ‘develop’ as Bitcoin did.

Ethereum is mostly used for transactions that hold a higher value, as transaction fees are easier to approve when they represent a small fraction of your transaction.

If you intend to send small transactions, it is best to look elsewhere because gas prices are at an all-time high. Currently, you can expect to pay an average of tens of dollars in fees alone, which places Ethereum in the same position as Bitcoin, where only large transactions make sense.

Transaction speeds are fast compared to Bitcoin, but setting a low fee will put you back in line. Ethereum is still a good option if you set a higher fee – then you can expect very fast transactions, as new blocks are being mined every 13 seconds.

Ethereum is a good option for many users. If you want to utilize its smart contracts, it offers this unique feature; if you want to hold the coin as a store of value or an investment, it is also a very good option; but if you want to use Ethereum for small transactions, there are other options that are more suitable for this.

HOW DOES IT PERFORM?

1. Decentralization: Ethereum itself is decentralized and secure. It is, however, host to many different applications which differ in security and reliability.
2. Safety: Ethereum operates on nodes, like Bitcoin. These nodes can theoretically be set up by anyone, ensuring decentralization – but in reality, setting up nodes is a difficult process. All the apps set on the Ethereum Blockchain are consequently decentralized.
3. Scalability: Ethereum, the blockchain, suffers in the scalability department. As it is host to many different apps and smart contracts, it is becoming increasingly congested. The result of this congestion are very high gas fees. As a consequence, many users are already moving to other smart blockchains such as the Binance Smart Chain. Ethereum 2.0 presents a solution to this, with the move to Proof of Stake which, among other things, contributes to a significant reduction in network gas fees.

ETH FEES
Ethereum transaction fees are measured in gas, which is simply the name given to fees on the Ethereum network. Gas is necessary for the Ethereum Virtual Machine to be able to self-execute smart contracts and other applications in a decentralized way.

Gas prices are determined by miners, and are based on the supply and demand for the computational power of the network, required to process smart contracts and other transactions.

Coins such as Tether, which also runs on the Ethereum blockchain, contribute to the rising of gas prices because fees are determined by network traffic.

Being the second biggest cryptocurrency, Ethereum’s daily volume is huge. Even if the value of the coin itself has no direct effect on the price of fees, its rise in value brings in more and more people that contribute to traffic on the network.

Higher than Ethereum’s, Tether’s daily volume is also a massive contributor to network traffic. Even with many Tether users migrating do different blockchains (which is happening exactly because gas prices are unbearably high), Tether sees a daily trading volume three times higher than Ethereum’s.

While the coin value itself does not directly affect gas prices, network activity is influenced by the coin price. In a way, this means that Ethereum transaction fees are tied to its value.

Ethereum is planning to move to a Proof of Stake (PoS) algorithm soon in order to help lower the gas price issue. Even if Ethereum’s value continues to increase, it is possible that the new algorithm will keep gas prices in check in the future.