How to use this glossary
Each entry explains what the term means for players, with a trusted source you can check for details. If a site uses different wording, the concept is usually the same.
The 20 essential terms
- Wallet (custodial vs self-custody) — A self-custody (non-custodial) wallet lets you control your private keys; a hardware wallet stores keys offline and signs transactions without exposing keys. Custodial wallets/exchanges hold keys for you.
- Secret Recovery Phrase (seed phrase) — A 12/24-word backup that can restore your wallet and funds. Never share it; anyone with it can move your assets.
- Public address vs private key — Your address is for receiving funds; the private key proves ownership and signs transactions. Each account has its own private key; keep it secret.
- Token approval / allowance — Permission a wallet gives a dApp/contract to move a token on your behalf. Review/revoke risky or unlimited approvals via explorer “approval checkers.”
- Provably fair — A verification system where the casino commits to a hidden server seed up front, then combines it with your client seed and a per-bet nonce; after reveal you can recompute and verify each result.
- Server seed, client seed, nonce — Inputs for provably fair: the operator’s secret seed (hashed before play), your seed (often user-set), and a nonce that increments each bet for uniqueness.
- VRF (Verifiable Random Function) — Cryptographic randomness that comes with a proof verified on-chain before use; widely used by smart contracts to prevent manipulation.
- RNG certification (GLI / eCOGRA) — Traditional casinos use lab-tested RNGs and game math. GLI-19 sets interactive RNG test criteria; eCOGRA is an independent testing and certification lab used by regulators and operators.
- RTP (Return to Player) — The long-term percentage a game pays back (e.g., 96% RTP ≈ 4% house edge). Regulators and labs define how RTP is measured and audited.
- House edge — The casino’s average profit percentage on a game over time (e.g., American roulette ≈ 5.26%).
- Wagering requirements (rollover) — The amount you must bet before bonus funds/bonus-derived winnings can be withdrawn (e.g., 30×). Always read game-weighting and max-bet rules.
- Max-bet (bonus) rule — A cap (often around $/€/£5 per spin/hand) when playing with bonus funds; exceeding it can void bonus winnings.
- Destination tag / memo — An extra identifier required by many exchanges for assets like XRP/XLM/TON/HBAR to route deposits to your account; omitting it causes delays or recovery tickets.
- Gas (EIP-1559) — On Ethereum, fees include a network-set base fee (burned) plus a user tip (priority fee); wallets expose these so you can choose speed/cost.
- RBF (Replace-By-Fee) — For unconfirmed Bitcoin transactions flagged replaceable, you can resend with a higher fee to speed confirmation.
- CPFP (Child-Pays-For-Parent) — Spend from a stuck low-fee Bitcoin transaction using a high-fee child so miners include both together.
- Mempool and confirmations — Unconfirmed transactions wait in the mempool until mined; platforms credit after a set number of confirmations. Block times vary by chain (Bitcoin ≈ 10 minutes on average).
- Lightning Network — A Bitcoin layer-2 using payment channels for near-instant, low-fee transfers; funds settle on the base chain when channels close.
- WalletConnect — An open protocol that creates an encrypted session between your wallet and a dApp via QR/deep link—no keys shared with the site.
- Smart contract / Layer-2 (rollups) — Smart contracts are programs on blockchains like Ethereum; modern scaling pushes transactions to L2 rollups that post proofs and data back to L1 to cut fees.
Compliance & safety terms you’ll also see
KYC / AML / Travel Rule — Many licensed markets require identity checks (name, address, date of birth) before gambling or cashing out. The FATF’s Recommendation 16 (Travel Rule) requires VASPs to collect and transmit originator/beneficiary info for crypto transfers; global adoption is ongoing in 2025.
Address poisoning — A scam where attackers insert look-alike addresses into your history so you paste the wrong one later. Use address books and verify full addresses.
Quick tips for beginners
Start with self-custody basics (seed phrase safety, hardware wallet for larger balances). Verify fairness (provably fair or on-chain randomness) and check RTP/house edge. Read bonus terms for wagering and max-bet limits. Double-check network, address, and any required memos/tags before sending. If a Bitcoin cash-out is stuck, consider RBF or CPFP if supported.
FAQ
What’s the difference between RTP and house edge
They’re two ways of expressing the same long-term math: RTP is the average paid back to players; house edge is the casino’s average take. A 96% RTP ≈ 4% house edge.
Do all crypto games use provably fair
No. Some rely on traditional RNGs with third-party certification (e.g., GLI/eCOGRA). Provably fair adds player-verifiable math.
Why do some coins require a memo or destination tag
Because exchanges reuse deposit addresses; the memo/tag routes funds to your specific account.
Is Lightning always faster for withdrawals
It’s near-instant when both sides support it, but channel/liquidity limits mean large amounts may still go on-chain.
