If you’re looking to invest in cryptocurrencies to use at a range of online casinos, you probably already know that there’s more to it than just Bitcoin. This guide on Ethereum gives you some handy facts about one of Bitcoin’s major competitors. We’ll also tell you which casinos accept Ethereum as well as where to buy it.
What Is Ethereum?
Ethereum is an open-source platform which allows developers to build applications, or Dapps, on its network. Currently in March 2018, Ethereum, or ETH, is the second-highest valued cryptocurrency after Bitcoin. In 2017 it peaked at over £1,000 per ETH, having started the year at around £7 per coin.
Is Ethereum Different to Bitcoin?
Yes. Bitcoin has one relatively straightforward ambition: to be the leading peer-to-peer payment method for digital currency transactions. Ethereum had the advantage of looking at what Bitcoin was doing right and determining what it could be doing better, then set about working on a new project. An emphasis on scalability, security, and the ability for anyone to build on top of the network is what separates Ethereum from Bitcoin.
One of Ethereum’s primary founders is Vitalik Buterin. In an interview in early 2018, he explained that he had never set out to create a project as large as Ethereum. But once he kept seeing areas for improvement, Ethereum grew larger and larger, and it is now viewed as a rival to Bitcoin. There are also thousands of ERC20 tokens available, all of which are built on the Ethereum network.
What Are ERC20 Tokens?
ERC stands for Ethereum Request for Comments. ERC20 tokens are built on the back of the Ethereum network, which is what makes them different from the vast majority of coins out there. Instead of having to create their own blockchain network, ERC20 tokens can take advantage of the ready-made solution that’s in front of them.
Because of this, the developers can spend their time focusing on one aspect they want to work on, or carving out a niche token. And among the many ERC20 tokens already in development, plenty are looking to complement the online casino industry, if they’re successful.
Do Casinos Accept Ethereum?
Players who frequent online casinos will have noticed that Bitcoin is gradually being accepted at more and more online casinos as a form of payment. The same can be said for Ethereum.
The number of online casinos which accept Ethereum is certainly smaller than those that accept Bitcoin. But with the cryptocurrency industry making such huge strides in 2017, it would be no surprise to see many more online casinos adopt ETH for deposits and withdrawals very soon.
There are already quite a few online casinos and gambling projects which support Ethereum. Edgeless is an ETH-only casino. Another upcoming project, Virtue Poker, plans to put an end to long-standing fears about collusion and rigged games in the online poker world. It proposes a novel method of randomising cards that works very much like players at a table – each shuffling the pack and passing it on, with the whole process performed digitally. The project is even backed by the likes of ten-time WSOP bracelet winner Phil Ivey.
Players who become familiar with Ethereum early on may see this as a huge advantage. If the ERC20 tokens built on the Ethereum network work out, there could be a whole range of inventive ways to gamble online. Those who already know how to buy and transfer ETH will have the privilege of trying these out before others catch up.
Where Can I Buy Ethereum?
You can buy ETH in many of the same places that you can buy Bitcoin, namely at a cryptocurrency exchange such as Coinbase or Binance.
If you’ve never bought a cryptocurrency before, you might want to check out our guide on how to buy Bitcoin. It walks you through the basics, and many of the instructions can be followed with just a few tweaks when buying ETH.
If you’re an online casino fan interested in using cryptocurrencies to make deposits and withdrawals, ETH is definitely worth your consideration.