Ethereum gambling as the name implies is nothing but wagering in Ether, the native cryptocurrency on the Ethereum network. Apart from accepting Ether as a payment mode, the Ethereum casinos operate in the same way as ordinary casinos. They have either fully integrated the Ethereum network into their financial infrastructure or have developed a whole new proprietary cryptocurrency of their own that can operate on the Ethereum blockchain.
Ethereum, as an altcoin (a cryptocurrency other than Bitcoin), has skyrocketed in its popularity for quite some time now, and online casinos have already started integrating Ethereum in their deposit methods. The fact that makes Ethereum superior to all other cryptocurrencies is its ability to create “Smart Contracts” that make transactions on the Ethereum platform ever more secure. Smart contracts are more practical agreements written in computer codes between two parties. They are executed automatically without any intervention from any third party as soon as the terms are fulfilled or the contracts are fulfilled.
Smart contracts run on blockchain technology and thus cannot be recalled or delayed which makes them a very useful component required in the online gaming industry. These fair and trustless transactions executed by Smart Contracts are probably the biggest reasons why casino-goers prefer Ethereum Casinos over other traditional online casinos. Find more details about what are other causes of exponential rise in Ethereum gambling and its impact in the online gambling industry.
Moreover, with Ethereum as the payment currency accepted in casinos, players are additionally stimulated with lucrative bonuses and an extensive list of provably fair games.
Ethereum gambling has revolutionised the gambling industry contemporarily with bitcoin and the reasons are manifold:
Though Ethereum is a little behind bitcoin in terms of market capitalization, it can perform better than bitcoin in terms of sustainability and values. Moreover, transactions on the Ethereum platform are much faster than on Bitcoin’s, owing to Ethereum’s smart contracts that can negotiate contracts much faster and in a secured way.
Ethereum transactions are executed on the blockchain technology that makes any third-party intervention redundant, as a result, there are practically no overhead costs, thereby keeping the transaction fees low. Moreover, the miner fees on the Ethereum network are also low as compared to Bitcoin’s.
Privacy is one of the greatest advantages that cryptocurrency casinos provide to players. It allows players to play anonymously without uploading any of their personal documents. This is because the technology on which the Ethereum casinos operate does not require any identity checks from users, all they need is the wallet address to send deposits and receive the winning amounts from the casino.
With Ethereum, the deposits and withdrawals happen almost instantaneously. As there are no financial intermediaries involved in the transactions, they happen directly between the casino operator and the players. Players are also not required to wait for the confirmation time as in the case of ordinary casinos where deposits or withdrawals happen via banking intermediaries that may take days to weeks to confirm transactions.
Crypto casinos offer provably fair games where each game is governed by a specific algorithm that proves that the odds are random and are not stacked by the House. Some casinos even share the seed codes of the games with the players and let them verify the fairness of the games.
Ethereum gambling has some downsides too, some of the most significant ones are listed below:
Ethereum gambling sites are not as popular as bitcoin sites and therefore, the counts are relatively less than BTC casinos; most casinos accept bitcoins and only a few accept Ethereum.
Ethereum is a volatile cryptocurrency that is still in its stages of development and therefore most investors are not very comfortable in wagering with Ethereum; they still consider Bitcoin as the best medium for exchange and a great store of value in a casino.
The blockchain technology that is looked upon as the robust security feature of a crypto casino, has a downside too. As the transactions recorded in the blockchain technology are untraceable, the criminal activities if they happen would also go unnoticed. It is virtually impossible to track the accounts from where the criminal activities are being executed. However, the decentralized technology of the blockchain network together with the robust security mechanisms implemented by casinos nowadays makes it incredibly difficult for any cyber hacks or fraud to happen.
Thus, Ethereum provides a decentralized way to enforce the Smart Contracts executed on the Ethereum Blockchain network which again provides greater security to the casino transaction and also brings down the transaction costs. Moreover, owing to the advanced technology of Smart Contracts or blockchain, the transactions are recorded much faster; even faster than Bitcoin’s.
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