How Token-Based Crypto Powered Casinos Work

Token Crypto Casinos

Token Crypto Casinos

Unfortunately, the digital token concept is often confused with the cryptocurrency concept. They should be considered as separate entities, however. Understanding their differences and the roles they play is the hard part, that’s why people mistake them. It is vital to start to understand them as they are going to shape the financial sector and if you are a gambler there are many benefits of using token crypto casinos when betting.

Blockchain Casinos

Since there are now thousands of cryptocurrencies it has become impossible to keep up with all the information available. That is why we have picked the best token crypto casinos to list on our site to make it easy to find trustworthy platforms to gamble. In this article, we will help you to understand how they work so that you can know the benefits on offer compared with real money casino sites.

Below, we take a closer look at the differences between digital tokens and crypto coins. We start the example with the phone card from yester-years. The card that we all used to place calls from phone booths; they were plastic sheets that had assigned values. Its function was to make phone calls through the phonebook machinery. The next example is the chips in a casino. Casinos use fake coins to run the machines in the casinos. 

Blockchain-Powered Digital Tokens And Cryptocurrencies

The blockchain ecosystem powers both digital tokens and crypto coins. Cryptocurrencies are easy to understand because they use the same domain as the Euro in real life. Tokens, on the other hand, are harder to understand due to their appearance. In a casino setting, Euros can substitute chips. Such an activity would be more comfortable and direct. But this is not the case; Casinos rely on chips since they play a function separate from the one played by the Euro. 

The same applies to crypto casino tokens; each one has been developed to follow a set number of rules. The most popular token now is the Ethereum ERC20. Smart Contracts are added to the tokens, thus enabling necessary tokens to manage various sets of additional rules easily. Therefore, there are plenty of similar tokens in place since they’re based on the mother token. They’re, however, different because they are joined by an additional set of rules championed by Smart Contracts concerning the destination use. 

All of the platforms reviewed on our site are token-based crypto casinos that are powered by either the EOS, TRON or ETH blockchain. The reason for that is that these blockchains are the best for decentralized gambling as they enable smart contracts to run which transforms the whole process to make it more beneficial to the gamblers. Bitcoin casino websites are not able to compete as the blockchain is not able to handle the demands that are required to run a high-quality platform that requires fast transactional speed to work best.

The Vital “Assignment”

The assignment is the most critical element to understand. Each token is designed to undertake different assignments. ERC20 is the Ethereum standard which acts as the mother token in which cryptocurrencies were forged from, some such as; Fun Coin, DFT, EDG, BXK, and many more crypto casino tokens. ERC721 is a new Ethereum token standard that is taking shape. The systems built upon this token have gained popularity quickly, and they include the likes of BetHash and Coin Poker among many more. But the question remains if cryptocurrency is the coin, what assignments does the token carryout? 

Different Types Of Crypto Casino Tokens

There are three types of token crypto casinos with some granting owners one or additional rights that they can utilize towards the token generators, case in point:

The last lot of tokens are other mixed tokens such as the ones used to vote. 

The Role Tokens Play In an ICO

We need to consider the most popular path used in blockchain tech in similarly collecting funds as crowdfunding: ICOs. After a new blockchain platform is developed, a new Initial Coin Offer (ICO) is usually in the offing. ICO are avenues where tokens are released and are sold to punters. Usually, the sale involves exchanging the tokens for BTC, ETH, or other known cryptocurrencies. The proceeds derived from the sale are used by the developer that floated the ICO to finance its firm. 

Gamblers that bought the crypto casino tokens earn future rights towards the company, based on the amount and type of token sold/purchased. Following this sale, the tokens serve as a right for the buyer. The holder of said tokens can later exchange the tokens for cryptocurrency amounts or coins if they desire or they can hold to receive profit share dividend payments.

How Tokens Apply In Real Life

Going back to the phone card technology, when bought, the user gets the right to use credits to make calls in a phonebooth. The same applies to the chips in a casino. Once bought, gamers acquire the right to use the corresponding value inside the casino. The cellphone traffic can as well be considered as a token: users get the right to use the traffic credit inside the provider’s network. 

Final Word

Ethereum blockchain has created the path in Smart Contracts and digital Token fields. Many more blockchain systems are developed via Ethereum proprietary token (ERC20), through convenience and efficiency. The coin is the cryptocurrency, while the Smart Contract is similar to the digital contract. The agreement comes into being between the part enforced by the arithmetic rules on the blockchain ledger. The crypto casino token plays the role of the medium in which one of three kinds of rights mentioned above gets implemented. 

Token crypto casinos and decentralized betting sites are starting to become mainstream. It is just the start of the world becoming tokenized as it is not just gambling that will be measured in cryptocurrency tokens. Sporting stars, food, brands, and anything with a monetary value will be valued in crypto tokens soon and community ownership will be the new model which should help to more evenly distribute rewards.

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Daniel Kay is a serial entrepreneur that has been traveling the world living off cryptocurrency for the last 6 years. He has a number of crypto related gambling review platforms along with regularly offers his expert blockchain advice on support and forums. He is the founder of Blockchain Casino Games and has a passion for all things crypto.