We are about to witness a revolution in the online casino industry: Ethereum casinos have a potential to change this sector from beginning to end and redefining the rules. Bitcoin brought many innovations to online casinos, such as anonymous gambling, provably fair games, and no country restrictions, but could not change much – the system it was using didn’t have the potential. Ethereum casinos, on the other hand, can do that because they have many innovative features not found in Bitcoin blockchain, like smart contracts. Although there are a limited number of Ethereum casinos now, the numbers will increase in the near future and the classic online gambling experience will change completely. In this article, we will tell you how this is going to happen.
Top Ethereum Casinos
What Is an Ethereum Casino?
To put it simply, an Ethereum Casino is a name given to online casinos that use Ethereum (ETH) as their currency. In other words, these casinos have slot games, roulette, blackjack, poker and other games too, but you can only use ETH to play them for real money. But this is not just a simple currency support: The features of Ethereum technology affect not just the games, but the whole system.
Before we start giving more details, know that Ethereum casinos work only on desktop PCs for now. These casinos have no mobile support, and it is not possible to see this support in the near future. Because in order to play at Ethereum casinos, you need to be able to use the smart contracts infrastructure. This requires the use of a special add-on even on browsers on desktop PCs. This may change in the future, but if you want to play in an Ethereum casino right now, your only choice is a desktop computer.
How Do Ethereum Casinos Work?
Ethereum also uses a blockchain database like Bitcoin. But because it is a much more sophisticated system, it has a feature called “smart contracts”. This feature means that the two parties can sign digital contracts that are linked to a particular circumstance. The contract can be about anything, for example, “10 ETH will be paid if red 7 comes on the roulette”. Smart contracts resemble some kind of escrow service: Casino owners already keep the rewards that the games distribute on the blockchain. When a player wins, the payment happens automatically. So you do not have to wait for withdrawals – it is truly instant.
Ethereum casinos keep all their infrastructure on the blockchain and even leave control to the blockchain. Because of this, a transparent and reliable system is established in which everyone can control any time they wish. All the benefits of Bitcoin casinos are available at Ethereum casinos too: You can sign up anonymously, perform fairness checks on games, and become a member from any country you like. In addition to all this, the RNG software which decides you have won or not is not kept on a server belonging to the casino, but the blockchain itself. In other words, this is a completely transparent system: Ethereum takes control of the games from the casinos and gives them to the players.
Ethereum Casinos vs Casinos That Accept ETH
The fact that an online casino supports Ethereum as a currency does not mean it is a true Ethereum casino. Casinos that only provide ETH support are subject to the constraints of classical online casinos and therefore, cannot offer the majority of the advantages of Ethereum. If we were to make a comparison between the two:
- No Licenses. Classic online casinos that only have ETH support often require a gaming license to operate. This license indicates that the casino is audited by an official organization. It has a very high cost and needs to be renovated almost every year. Ethereum casinos do not require a license because the auditing is done by both the players and the blockchain. So there’s no possibility of cheating.
- Lower Costs. Operating a classic online casino that supports multiple currencies is a very costly business. Currency exchange rates, audition fees, server leases … Ethereum casinos do not have these disadvantages and allow you to work with much smaller budgets. Almost all of the transactions take place on the blockchain.
- Fair RNG. Let’s think that you are playing a slot machine in a classic online casino that supports ETH only as a payment method: A RNG software which you have no idea about how it works decides that you have won or not. This software is controlled by the casino and it is not possible to make sure that it is fair. In Ethereum casinos, RNG works on the blockchain. So you make sure the “dice” is really random.
- Lower House Edges. Classical online casino house edge rates range from 1% to 15%. In Ethereum casinos, this rate is 0.83% – no matter what the game is. In other words, you are more likely to win.
- No Restrictions. Due to the licenses they have, online casinos that support multiple currencies cannot accept members from every country. Likewise, they have to request ID verification for withdrawals. Ethereum casinos do not have these disadvantages as they allow anonymous gambling.
Ethereum Advantages vs Bitcoin
First of all, let’s talk about the differences between the two casino types:
- Truly Fair Games. The provably fair feature of Bitcoin is very useful, but it is possible to abuse it in theory as it happens on the “casino side”. At Ethereum casinos, nothing happens on the casino side and it is not possible to intervene.
- Lightning Fast Withdrawals. In classic online casinos, it can take days before you can withdraw your money. Even Bitcoin casinos have a waiting period. But thanks to smart contracts technology, you instantly get paid for your winnings in Ethereum casinos – there is no waiting period.
- Better Choice for Jackpots. Ethereum is the better choice to make high volume transactions as it has a much more advanced infrastructure. Bitcoin experiences a variety of problems while processing a large number of high-volume money transfers. Ethereum does not have this disadvantage.
Technically, the biggest difference between the two virtual currencies is the smart contracts technology. It is not possible to set a prerequisite for money transfers in Bitcoin. Once a money transfer has been completed, it can no longer be canceled or subjected to any termination. However, Ethereum allows conditional transfers on the blockchain. Because of this, you can have control over your financial transactions.
As we mentioned above, Ethereum casinos are an exciting development and have the potential to overthrow even the biggest brands in this sector in the long run. Casinos that run on the blockchain – this is what the Ethereum technology promises. This is a much more effective innovation than Bitcoin and can be used to create games of chance controlled entirely by users. We think that the online gambling industry’s future lies at the Ethereum casinos – join one of them today and see for yourself how the system works. Viva la revolution!