The Pros and Cons of Different Blockchain Networks for Decentralized Gambling
In the modern time of iGaming, there’s nothing as convenient for the player as a decent crypto gambling site. Decentralized casinos offer plenty of benefits when compared with regular online gambling sites, especially for those who already own crypto coins.
However, you have to know the pros and cons of blockchain networks for decentralized gambling before you put that knowledge to use. So, our team will drop all the key details that could help you gain an upper hand and more control over your gambling endeavors.
Background of Blockchain in Gambling
Blockchain technology in gambling truly took off back in 2014 with the appearance of the first Bitcoin casinos. Ten years later, we now have hundreds of crypto-gambling sites that rely on blockchain and smart contract execution to deliver the latest gambling trends.
We’ve sadly seen a lot of cases where players got scammed or were victims of identity theft after their personal information got stolen from regular casinos. So, that’s another contribution that decentralized casinos have made to the industry since you can play transparently, yet anonymously there.
Blockchain networks allow instant and secure transactions with low fees and that’s the major benefit of it. You also won’t have to worry about the safety of your payment details since none will be disclosed on the site you play at. All you have to do is simply have a crypto wallet to transfer the funds directly into the casino’s wallet.
Even so, all those benefits wouldn’t be worth a dime if you weren’t able to use them. You need a casino of your choice to offer crypto networks through which you can make crypto deposits. For instance, you can’t make ETH deposits without the site offering an ERC-20 network, so the true development of these platforms only happened recently.
That’s also why we’ll give you the ins and outs of all those networks to bring you the details on the most beneficial and widely used ones.
As one of the most popular cryptocurrencies for online gambling, ETH made a name for itself in the iGaming industry for several reasons. The main one behind the success of Ethereum casinos is the fast rate for processing gambling payments.
If you value fast-paced deposits and withdrawal processing, we suggest you stick with this network even alongside Bitcoin. The reason for this is the ERC-20 network which is widely available and the building blocks that are dynamic and still in expansion when compared to a bit static BTC network.
So, due to all these factors, Ethereum casinos are able to process payments within a few minutes at most, and often in a matter of seconds. It’s the fastest possible way of payment you can use for online casino sites and the expanding developer community ensures things stay that way.
Plus, the network is so secure and stable because of the smart contract execution that you’ll hardly ever have to worry about your safety. On the contrary, there are some minor drawbacks with this one since not all gambling sites offer the ERC-20 network, but the expansion is still ongoing.
Scalability issues are projected to rise as the network is rapidly growing, but so far that never posed a threat to online casino payment processing. The only thing that doesn’t get better with ETH deposits and withdrawals is the gas fee you may have to pay since it’s higher than average for gambling cryptocurrencies.
Just like ETH, TRON is also a currency and a network, so you can access various TRON casinos through the TRC-20 network. It’s pretty similar to ETH in the sense of how crypto casino payments work, and you still get lightning-fast deposits and withdrawals with this one.
In fact, the gas fee you’ll have to pay is usually way lower than that of an equivalent ETH transaction, so one could argue that TRON captures the best of both worlds. Even so, there are some minor issues with the main one being a lack of sites that offer the mentioned TRC-20 network for TRON deposits.
It’s still a network in expansion with building blocks just gaining ecosystem momentum, so we can expect a lot more TRON casinos and network improvements in 2024 and beyond. As of now, TRX makes one of the five most frequently used cryptocurrencies for gambling and it’s mostly used by low-rollers that enjoy instant payments and low fees perfect for managing on a tight gambling budget.
Last but not least, we reach the EOS blockchain network which also offers an EOS token in which you can make online casino deposits. However, EOS casinos are slightly different due to their lower frequency, so regardless of all the benefits, you still may face some issues with this network.
Don’t worry, though – EOS gambling sites are growing in number by the day and you can use the EOS token on most of these sites. What’s more, the token is getting readily available on most crypto exchanges so you can easily obtain it for real money, and later on, transfer it to an EOS casino through its network.
The EOS network is perfect for online gambling due to its general application in DApps, so the same goes for gambling DApps. The big news is – you won’t have to pay any fees for EOS transactions since the network operates a bit differently than ETH.
That leads us to the biggest concern of this network. It has more governance than others we’ve mentioned so far, so you could say it represents a sort of centralized currency in the sea of decentralized ones. That makes it less decentralized than, let’s say, ETH or TRON, but you still get the same scalability and transparency, which coupled with no fees leads to great benefits for online casino payments.
Comparison of Blockchain Networks For Gambling
Now that we’ve gone through the most important factors for each of these blockchain networks, let’s run it back a bit. We’ll compare each of these to tell you what’s the best option for your gambling style, and we’ll lay down all the details and leave it up to you to decide if one of these makes a perfect fit for you:
|Gambling DApp usage rate
|Higher gas fees
|Lower gas fees
As you can see, the biggest difference between all these is the fee you’ll have to pay and the frequency of availability for online gambling DApps. While scalability and convenience also make for important factors, we left those out of the table since all three of these offer seemingly matching levels of those.
It’s not exactly the same, but all three capture the essence of crypto transactions and remind us why we use decentralized gambling DApps in the first place. However, the higher gas fee you’d have to pay for ETH transactions can often be a deal-breaker, even though it’s still the most commonly used network for online gambling.
On the other hand, EOS makes a great choice for its instant payment processing and no fees, but it still can’t compare with TRON and ETH in terms of availability. Based on all this, we’ll leave it up to you to decide. If you can find an EOS casino that works for you, we’d suggest you go with that option, and if you wish for the best overall solution, we’d still recommend ETH regardless of the gas fees.
Future Trends and Developments
Overall, decentralized gambling is so popular these days due to all the blockchain networks we’ve mentioned in this guide and their use of convenience. There are still some emerging networks worth noting, and we think it’s for the best of the industry since more competition can only lead to lower fees and more convenience for players.
Modern blockchain software is written in blocks with a faster exponential growth rate and development ledger, which means you can expect even faster payment processing. The only thing that could affect the usage of these networks in DApp gambling for the worse is if regulatory implications get involved, but we have yet to see how that will turn out for individual countries.
For now, the global gambling community features little to none of these regulations, so you can still freely access your favorite sites and use whichever network suits you the best.
The biggest development for the future could be the long-planned interchangeability of these networks which would allow you to easily transfer different coins via almost any network. It already started with some common blockchain networks like ERC-20 and TRC-20 that allow for more transfers other than just ETH and TRX, so we are excited to see how that connected system will work.
What’s a blockchain network and how can it be used for gambling?
The blockchain network is an ecosystem of blocks and ledgers used for cryptocurrency transfers and it can be used in online gambling DApps for instant and secure transfers from the player’s wallet to the operator side.
What’s the best crypto network for online gambling?
Some of the best networks for crypto gambling include ERC-20, TRC-20, and EOS which all include fast-paced processing with low fees and high scalability.
How can I pick the best blockchain network for decentralized gambling?
You can pick the best blockchain network suitable for your gaming needs based on your preference for fees, transaction speed, and availability for online casino platforms and gambling DApps.