Do not think that Ethereum is just a tool for transferring money? Well, Thanks to external application support, the Ethereum blockchain can be used for much more! Sportsbooks are just one of the examples: Sports betting sites that build all their infrastructures on the blockchain can offer a much higher quality service to its members. For example, what do you think of a betting site that makes guaranteed instant payments? By choosing an Ethereum Sportsbook, you can easily get this and much more. Blockchain technology makes sports betting more fun and more profitable.
Top Ethereum Sportsbooks
What is an Ethereum Sportsbook?
The betting sites that work on Ethereum blockchain are called Ethereum Sportsbooks. These sites also have a web address and therefore a server, but the betting platform they use is not stored on a particular server. The Ethereum blockchain is a decentralized network and can run external applications. Sportsbooks sites use this feature of Ethereum and build all their infrastructures on the blockchain. The betting interface you see on your screen actually works on a huge and anonymous database. Ethereum sportsbooks sites also have many advantages that cannot be found in regular betting sites, as we will mention below.
How Do Ethereum Sportsbooks Work?
There is no difference in the way betting works. An Ethereum sportsbook does not offer a special type of bet and/or change the way of how the current bets work. Bettors can easily switch to an Ethereum sportsbooks site without having to re-learn the system. The difference of these sites is the advantages they offer to their members. If we list them briefly:
- Full Anonymity. Ethereum sportsbooks sites do not ask for your credentials for membership and payments. It is possible to complete all operations using only an email address.
- Maximum Security. You do not need to share your credit card or bank account details with third parties to make a payment. Your Ethereum wallet address is the only thing you need. Nobody else can access your financial information.
- Instant Payments. Each bet on Ethereum sportsbooks sites is a smart contract. You get immediately paid right after you win a bet. All payments are guaranteed.
- Lower Fees, Faster Transactions. All transfers on Ethereum blockchain are completed in a few seconds and the fees are much lower (compared to Bitcoin). You can bet with very low amounts.
- Higher Odds, Lower Edges. Due to the reasons we will explain below, the house edge of Ethereum sportsbooks sites are lower and their odds are higher.
Ethereum Sportsbooks vs. Regular Sportsbooks
Regular online sportsbooks must use an electronic gambling license. This license is issued by different institutions and those who are respected are extremely expensive. To ensure maximum reliability, it is also necessary to work with auditors and allocate a budget for this. Regular betting sites have to allocate a large part of their annual budget to licensing and auditing fees. Moreover, despite all this, they still cannot accept members from every country and they have to deal with many legal problems. Sometimes it is not even possible to pay members because the laws of the country where the member lives are preventing money transfers from betting sites. For these reasons, regular betting sites are subject to many restrictions and have to focus on legal issues rather than on player satisfaction. All these expenses also reduce their profits. So they need to use higher house edge rates to keep their income. For example, you can earn up to $ 95 for every $ 100 investment since the house edge rate of regular sportsbooks does not go below 5% in general.
Ethereum sportsbooks sites have a maximum of 1% house edge above all else. So you will earn more for your investment. They do not need to use licenses and no external audit is needed, so they can use their budgets much more freely. They are not subject to geographical/legal restrictions and can accept members from anywhere in the world. Payments are no problem: Over the blockchain, all transactions are completed anonymously within a few seconds. So the laws of the countries where the members live are not important to Ethereum sportsbooks sites. Since the banking system is not used, it is not necessary for neither the members nor the site to pay a fee to payment providers. Ethereum sportsbooks are sites that can use their budget to provide customer satisfaction. Therefore, they offer a much more satisfying betting experience and much higher odds.
Ethereum or Bitcoin? Which Should I Choose?
Without a doubt we would have to go with Ethereum sportsbooks. There are many reasons for this, but all of them are due to the fact that Ethereum sportsbooks are platforms that work on the blockchain. Bitcoin sportsbooks are just websites that accept BTC. You can transfer money and place a bet anonymously, but that’s all: The site itself is still running on a central server. So it may be seized by the government, your access may be blocked, and/or site administrators may vanish with the Bitcoin they collect. Bitcoin does not have a solution for these problems.
Ethereum solves all potential problems with the smart contracts infrastructure. With an Ethereum sportsbook, every bet is a contract and the payout is already stored on the blockchain. If you win the bet (if you fulfill the terms of the contract), you receive your payment instantly. The system works automatically and needs no manual approval. By working on the blockchain, Ethereum sportsbooks can stay on a decentralized network. In other words, there are no central servers: Governments cannot seize and/or block access to the server. Using Ethereum is also advantageous for site owners because micro-management problems do not exist: They can get rid of most of the costs they have to make if they were using a central server. In short, Ethereum blockchain offers many advantages to both bettors and sportsbooks. Finally, we can say that Ethereum sportsbooks sites have a lower house edge compared to Bitcoin versions: This ratio is usually less than 1%.
The number of Ethereum sportsbooks sites is less than Bitcoin versions. This is because a higher level of technical expertise is needed to carry a betting platform onto Ethereum blockchain. A regular sports betting site may begin to support Bitcoin without having to make a separate investment. For Ethereum, they need to change all their systems. For this reason, Bitcoin sportsbooks sites are much more numerous. But this is a temporary situation and the number of Ethereum sportsbooks sites is increasing day by day. This will be a very positive change: After all, Ethereum offers an advantage for everyone in the online betting industry.