DAO.Casino Ecosystem is based on several core technologies. And these work seamlessly to create a single, up-to-date, technological product for you to get maximum enjoyment from. In the first of several articles, we’ll be explaining how these different core technologies are at the heart of what we do. One of these is Ethereum blockchain, which is considered on-chain, which is different to an off-chain layer, which occurs separately.


The role of blockchain is crucial. A major benefit is that it allows us to execute smart contracts, which can be leveraged to benefit the gambling industry as a whole. Among the many advantages of this blockchain technology is that it ensures players will receive rewards in the same way as other participants within the ecosystem.

DAO.Casino protocol acts as an independent intermediary between all groups, from game developers to casino operators to affiliates. Smart contracts guarantee a trusted and automated distribution of funds and its safety, without a third party needing to get involved. However, smart contracts, working within an Ethereum blockchain, are rather slow as a proof-of-work consensus has to be reached by miners. This can take some time. Another problem is it gets expensive, as you also need to pay a fee for each transaction.

This “gas price” fee measures how much "work" an action, or set of actions, takes to perform. Every on-chain operation that can be performed by a transaction or contract on the Ethereum platform costs a certain number of gas, with more complex computations costing more than simpler ones. By requiring that someone has to pay for each operation (or entire contract) it performs, it means that you are choosing a fee based on the work to be completed directly.

Off-chain: do it faster, make it better

In order to resolve the issue of slower speed and costly and inefficient administration, we use an off-chain solution known as “state channels” which optimizes smart contracts for the task at hand. State channels is a two-way discussion channel within users, entirely off the blockchain and exclusively between the participants. As well as ensuring a faster, cheaper and more private method, it also means those involved can decide at a time or a value when they want the discussion to end.

Source: Eric Olszewski for BlockChannel


This development now makes it possible to conduct transactions instantly, while reducing their cost several times over. Meanwhile, it’s worth remembering that DAO.Casino ecosystem can function on other blockchains that support the operation of smart contracts.

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