There has been a complete misconception about tokens and coins in the crypto world, especially for newer investors. A token can be an equity, utility or security token; all the same, there is a slight difference between a token and a coin. Every crypto coin is native to its blockchain; for instance, each Bitcoin. Ether and Litecoin exist on their unique blockchain. So, in essence:
- Bitcoin separately operates on a Bitcoin Blockchain
- Ethereum separately operates on the Ethereum blockchain
- Same as the NEO coin
All digital coins exist as data on a giant blockchain that keeps track of all transactions, so when there is a P2P transfer of coins, no physical coin moves. Some of these coins can only be used as we would use real-life money, e.g. BTC, while others; ETH, and NEO, have more features and can serve just more than the money purpose. Ether, for instance, is used to fuel transacts on the Ethereum Network. But interestingly, because it got more features and can operate more than just money, Tokens can be built on the Ethereum network, but to send such tokens, one would still need the coin Ether as a gas. More like a fee for computers that verify transacts over the network. ‘The dividend for holding certain assets (coin) to sustain the network are tokens or coins.’
How are tokens created?
For tokens, they can only be created on an existing blockchain. And the most common blockchain tokens are created on the Ethereum blockchain. Anyone can make their custom token on one of these platforms. This could sound strange for a newbie. Tokens are used to interact with decentralised applications that are built on existing blockchains. If a token is created on the existing Ethereum blockchain, the token’s creator needs to spend some Ether (coin) to get network miners to validate the token creation. So this implies that any application (token) built on the Ethereum network must use Ether coin to transfer the token from one user to another.
Will crypto tokens stay?
Responses from an increasing global population of Crypto Sharks, Investors and Newbies range from the anonymity of crypto is awesome, it is completely decentralised, it has little or no fee to transact, and it practically depends on the economic rule of demand and supply. Hence, it implies there is the magic of the value of this token in your possession to multiply.
The world is slowly embracing the ease of transacting a huge sum without carrying a bag of cash all around. The reality remains that crypto tokens are getting more and more transactions with a steady growth rate since 2012. Times are fast changing, and with the rising global acceptance of cryptocurrency, the rise in crypto coins and tokens is inevitable! Gamers and casinos are beginning to adopt these tokens as a tool for staking.
With the advent of several technological advancements and the incorporation of several payment processing APIs, crypto tokens have been considered valuable because of their purchasing power, anonymity, and usage in placing bets, especially in the gaming industry, such as online casinos and other gambling sites. But with the advent of crypto tokens and their adoption in the gaming industry, there has been an obvious sweep of the ideology of traditional casinos using dodgy tricks; that gives it an upper hand in winning whilst providing a transparent and clear platform, ensuring the odds are legit and clear to gamblers.
As regulated by special law, there is a percentage that online casinos remit a certain percentage of their revenue. There is already a programmable payout rate for crypto casinos, so all wins and losses are checked automatically. Thus, the small part of revenues from casinos redistributed amongst players has a high level of transparency as the source code can be traced.
Tokenisation
With the advent of tokens used by players for gambling resulted in decentralised casinos featuring many games like dice, blackjack, hi-lo, crash, and baccarat. Bets are made with these tokens, which are usually sent to a given wallet address in the corresponding network before they can begin to play. Every time a bet is placed, a player’s seed gets hashed with the bet id, resulting in a unique random number that can be verified on the blockchain. The improvement and dynamism brought by this include:
- Doing away with exuberant costs associated with deposits and transactions on the casinos plus a myriad of taxes and duties on the players. As online casinos adopt tokens as an element for wagering, there is a low/no transaction fee for token exchanges, hence absolving the casinos and even the gamblers of fees. The selling point is gamblers can enjoy low withdrawal fees and deposit costs, to make them preferable.
- With the advent of tokens, there would be no need to scoop up people’s private information and credit card details, as transactions are basically from the player’s token wallet to the wallet address given by the casino before a player gets to start playing.
- The advent of tokens for online casinos comes with the introduction of the benefits of gambling, as gamblers get awards of various ranges. Moreover, it also provides promotions to attract different customers.
- Tokens used in crypto casinos are utility tokens. They are rare because they are expected to gain value based on their limited supply.
So when you play at a trusted crypto casino like BC.GAME, which offers provably fair games and incorporates the right safety measures, then gambling becomes a stress-free activity that offers additional protection on your personal and financial information!
