How Rollups Can Make Crypto Gambling Faster and Cheaper

We've noticed that you like our guides to all the intricacies of the world of crypto. In this one, we talk about rollups, which you should be familiar with if you're looking for ways to gamble with crypto and not break the bank by paying transaction costs.

Rollups can also improve transaction times, enabling players to complete withdrawals in under a minute. If this sounds good enough, keep reading. Here's what the Crypto Gamba team has discovered about rollups and their role in blockchain gambling.

What Are Rollups?

A crypto rollup is a Layer-2 network created as a solution to improve the main network's (Layer-1) scalability. In other words, it is a protocol designed to increase transaction speed and reduce costs while alleviating congestion on the main chain, such as Bitcoin or Ethereum.

Today, there are two main types of rollups: Optimistic Rollups and Zero-Knowledge (ZK) Rollups. This may seem intimidating, but don't give up. Let's find out how they work and how you can take advantage of them.

How Layer-2 Solutions Work?

The key role of a rollup is to execute transactions off-chain, bundle them up and submit to the main blockchain without compromising security. Okay, we know that this doesn't tell a lot if you aren't tech-savvy, so we'll try to explain it in simple terms.

First of all, when we talk about scalability, we talk about how many transactions a network can execute per second. When it comes to major digital currencies, such as Bitcoin and Ethereum, they are prone to network congestion, which means that transactions may take longer and, consequently, cost more.

While exploring the internet to learn more about rollups, we came across a YouTube video that explains these protocols using a metaphor. The creator compares the main blockchain to a busy highway with an additional lane added. That lane is a rollup, which is built on top of the blockchain to speed up transactions. While they don't rely on the features of the main networks, rollups inherit their security protocols, which makes using Layer-2 solutions a safe option.

Types of Rollups

Based on their approach to security, crypto rollups can be divided into two types. Here's what you should know about them.

Optimistic Rollups

This type of rollups focuses on scalability and efficiency, assuming that transactions are valid until proven otherwise, hence the name. As such, they rely on a challenge period, during which users can submit a fraud proof to challenge the results of a transaction. Since fraud proofs are rarely submitted, gas fees are low, which makes Optimistic Rollups a cost-effective solution. At the same time, withdrawals can be slower due to a challenge period. Examples of these rollups are Optimism and Arbitrum.

Zero-Knowledge (ZK) Rollups

Also known as ZK Rollups, these protocols function in the opposite way, focusing on privacy. They use complex cryptographic mechanisms to verify that a transaction is valid without revealing its details. With no challenge period, withdrawals are processed more quickly. Still, gas fees can be a bit higher due to the required computational resources. The examples of ZK Rollups are zkSync and StarkNet.

Rollups vs Sidechains

A few weeks ago, we discussed sidechains. Although both rollups and sidechains are created to improve the scalability of the mainnets, there are certain differences between them. These are the main ones.

Sidechains operate on separate networks, while rollups rely on the security frameworks of the main blockchain, which makes them a more secure solution.
Due to their independence, sidechains execute transactions faster. At the same time, rollups rely on the main chain to finalise transactions, which can cause congestion.
Transactions on sidechains are cheaper, whereas computational work and hardware requirements can increase transaction costs on rollups.

Rollups and Blockchain Casinos

So, what does all this mean when it comes to online gambling? Rollups address some of the major issues experienced by players who use cryptocurrencies to gamble. We can even say that rollups could revolutionise crypto gambling to a certain extent. Here is how you can benefit from them.

Low Transaction Fees

If you are a casual player who deposits small amounts, you'll love to hear that Layer-2 solutions cut costs down dramatically. For instance, if you use Ethereum, gas fees can set you back up to $20 per transaction, which makes depositing smaller amounts a complete nonsense. With rollups, these fees are lowered to mere cents, meaning more money for gameplay. So, we're not talking about gasless transactions, but close to that.

Faster Transactions

On Ethereum and Bitcoin networks, you can wait up to an hour for a transaction to be completed. The practice has shown that when using rollups, withdrawal times can be under 60 seconds. So, you can jump in on the action almost immediately, and if you win, you can clear your winnings in no time.

Uncompromised Security

With rollups using the main chain's security framework, you can have peace of mind. What's more, you can use major cryptocurrencies you are already familiar with and enjoy cost-effective and swift transactions.

Closing Thoughts

Rollups are just one of the scaling technologies that should alleviate the congestion of main networks. Although they may seem like the perfect solution, rollups still have their share of disadvantages, which include withdrawal delays on Optimistic Rollups and higher transaction costs on ZK rollups.

Some say that rollups are fundamental to the evolution of blockchain networks. So far, a range of trusted Ethereum casinos have adopted Layer-2 scaling solutions, and we hope more operators will follow suit.

Thanks to her journalism background, Marija has a methodical approach to writing about crypto casinos. With years of experience in research and analysis, she aims to provide clear insights into the world of crypto and online gaming and the points where they intersect. Whether discussing industry trends, regulatory changes or game mechanics, accuracy is her top priority.