As mentioned before, transactions on the Ethereum blockchain theoretically take 15 seconds to get confirmed and executed. However, in reality, interacting directly with the Ethereum blockchain is slow. While this may be fine for things such as sports betting, it is not good at all for betting on slots or dice.
Fortunately though, technology is fast improving and Ethereum has already created a number of speed improvement technologies. Some of these are optimistic rollups and zero-knowledge rollups (zkRollups).
Optimistic Rollup refers to a layer 2 technology aimed at scaling Ethereum smart contracts as well as decentralized apps to speeds of 100 to 2,000 transactions per second (tps). One of its key advantages over other scaling solutions is that it offers the potential to reduce transaction costs.
It facilitates the use of Optimistic Virtual Machine (OVM) for implementing turing-complete smart contracts on layer 2. It essentially moves transactions off the Ethereum main chain (layer 1) to a layer 2 sidechain. The sidechain is, however, secured by layer 1.
The solution sacrifices speed and privacy but eliminates the complexity of introducing proofs, as is the case with the second solution.
Like the above solution, zkRollup too is a layer 2 scaling solution. But what sets the two apart is that the latter allows a single main chain transaction to validate multiple transactions on sidechains.
Rather than having each token transfer as a unique transaction, as it is at present, this solution combines hundreds of transactions into a single one. Unlike Optimistic Rollup, it generates a SNARK proof. Using this proof, one can refer to the transaction from the main chain.
In the meantime, before the implementation of optimistic rollup and zkRollup, some casinos are already using other technologies to speed things up. For instance, FunFair and its group of casinos have implemented ‘State Channels’ using their ‘Fate Channel’ technology.
Though Fate Channels are a form of State Channels, FunFair explains that they are designed slightly differently. They generate random numbers in real-time and facilitate micropayments among other things.
Using this technology, casinos can support transactions without having to use the Ethereum blockchain. Therefore, there is no need to wait for transaction confirmation, except when opening and closing channels. This makes it a fast alternative to traditional approaches.
All in all, it is clear that with the implementation of the aforementioned speed improvements, Ethereum casinos have a shot at addressing their biggest weakness.