Gaming

Ethereum Betting Uses Smart Contracts to Attract Anonymous Users

The impact of Ethereum-based online betting sites have made on the real money gaming has taken the industry entirely by surprise. Players do not need an account with a casino to place bets, never have to reveal their identity, and with all this comes growing security reassurances.

With anonymous gambling opportunities offered by the latest crop of Ethereum-based betting sites, players do not have to reveal who they are. All they need is ETH or to purchase the digital currency that the blockchain-based gambling application uses to allow players to place bets.

After this, the entire cryptographic coded transaction is completely encrypted over the Ethereum network. There is no way to trace who made the bet, and as such, people in countries where gambling is illegal can make bets without their governments being able to track them down.

Only the players public key is required by the betting website. The casino’s application does the rest of the hard work. The very first inception of this concept led to casinos such as Edgeless smart contract powered casino – an online casino that offers its players the chance to play casino games with a 0% house edge.

Why Ethereum and Not Bitcoin?

Bitcoin’s network was the first to invest in smart contracts, but it is restricted by currency. On the other hand, Ethereum allows private ICOs to write their own codes (‘autonomous agents’). This is how the creation of Ethereum based casinos and betting applications came to light.

Although there are Bitcoin-based betting websites, another key reason Ethereum gambling is so popular is speed. The Ethereum network is much quicker at processing gambling compared to Bitcoin. That being said, there are still Bitcoin casinos coming through such as sp8de that aim to challenge the Ethereum model.

The idea behind Ethereum based betting sites is that players connect to the blockchain based application and create a smart contract. The player selecting a betting option starts the contract. This could be a bet on a sports event or on who will become the next president of the United States. It could even be a casino game. However, both work in slightly different ways.

Sports and Recreational Betting

For sports or recreational betting, once the smart contract is started using the betting application, the casino will place the payout amount for the bet (the amount the player stands to win). The player will release the amount bet. These amounts are kept within the smart contract until the bet has been resolved.

If the player wins, then the smart contract releases both the player’s bet and the amount of digital currency transferred by the betting website (the winning bet amount) to the player’s public key. The player’s Ethereum account is instantly credited. On the contrary, if the player loses, then the player’s bet is released to the betting website, and the amount the betting website put up in case the player won is also returned.

Meanwhile, no personal information is exchanged whatsoever. Even wallets such as Coinbase cannot detect what this transaction was. As far as any outside party is concerned, this was an entirely private transaction between two public keys that agreed on an anonymous contract that would result in an exchange of funds.

Etherium Casino Betting

There are two ways Etherium casinos function using smart contracts. In essence, the same process is used as mentioned above using sports and recreational betting, but there are still some slight differences.

Firstly, if a player has to create a new contract for every bet made playing Roulette or every spin on a slot, this would slowly begin to overload the Ethereium network. Earlier blockchain casino models did start using these types of smart contracts. The problem was that between each spin, there was at least a 15-second delay while the smart contract was created for the next bet.

The solution was simple. Players can begin a session with a slot machine, roulette game or any other gambling game. When the session is started, the player decides how much he/she is willing to deposit into the session. Therefore, if I wanted to gamble 100 ETH, I would deposit just 100 ETH to the session.

At the end of the session, the winnings are taken from the casino’s Ethereium funds as per the smart contract dictates. On the other hand, if the player ended the session down, then the remaining balance is transferred back to the players, and the amount lost transferred to the casino.

Using Smart Contracts Makes Online Gambling More Transparent

Another great aspect of using smart contracts is the fact the Etherium network records all transactions. This means the casinos are unable to cheat.

We will be covering the term ‘provably fair’ in a follow-up news article.

Related post:

How Are Valve Games Competing With the Blockchain?

James Donaghue

My name is James, but most people call me Jim. I am a proud father, I enjoy playing sports and I love to travel. Another hobby of mine is keeping a close eye on the blockchain and its development. I have been investing in cryptocurrencies since early 2017; however, my journey into the blockchain began in 2015, which stemmed from a career in FOREX. Since that time I have provided regular market data analysis reports on the financial performance of mainstream as well as lesser-known currencies and ICOs. More recently I have become a regular blockchain news writer and research contributor.

Related Articles

9,990 Comments

  1. Greetings! I know this is kinda off topic but I was wondering which blog platform are
    you using for this site? I’m getting tired of WordPress because I’ve had issues with
    hackers and I’m looking at options for another platform. I
    would be great if you could point me in the direction of a good platform.

  2. Aw, this was a really nice post. Spending some time and actual
    effort to make a superb article… but what can I say… I hesitate a whole
    lot and don’t manage to get anything done.

  3. I was very happy to find this great site. I wanted to thank you for ones time just for this fantastic read!!
    I definitely appreciated every bit of it and I have you bookmarked to check out new things in your website.

    Feel free to visit my website: mei.edu.au

  4. Эра выживания смотреть онлайн бесплатно в хорошем качестве полностью на русском языке бесплатно фильм Эра Выживания Смотреть
    Онлайн Бесплатно В Хорошем Качестве Бесплатно Полностью На Русском

  5. Hello there, I found your website bу mеans
    of Google even aas loοking fοr a related matter,
    үoᥙr web site ցot here up, it seеmѕ to be greаt.
    I have bookmarked іt iin my google bookmarks.
    Ꮋello theгe, јust tuгned іnto aware of y᧐ur weblog tһru Google, Damaged Hair Products shop beauty and cosmetics fоund that
    іt’ѕ rеally informative. I am gоing to Ƅе careful for brussels.
    I’ll appreciate if yߋu proceed tһis in future. Many peopke ϲan Ье benefited оut
    of үοur writing. Cheers!

  6. Dr. John Rackham

    Dr. John Rackham earned һіs Doctor of Pharmascy degree from
    Washington Stɑte University in 2009. He iѕ а mеmber of tthe International Society oof Cannabis Pharmacistgs (ISCPh) and iѕ
    ⅽurrently ᴡorking on һis Endocannabinoid Medicine Certification, offered tһough
    Tһe American Journal оff Endocannabinoid Medicine.
    Ηe iѕ aso a member օf tһe American Pharmacists Association (APhA), thhe Natiomal Community Pharmacy Associatyion (NCPA), ɑnd the Washington Statee Pharmaacy Association. Ꮋe earned ɑ Certification іn Endocannabinoid Medicine from Cannabis Patient Care іn 2022.

    Foor аlmost 12 years, Dr. Rackham hаs advised and educated patients
    ᧐n hhow to ƅest use theіr medication, safely ɑnd effectively.
    In 2017, һe recognized the need and dejand for CBD education іn hiѕ own pharmacy.
    Realizing thhe potential health benefits tһat CBD сould offer,
    he researched and sought oout ɑ һigh-quality CBD manufacturer, tһen established ɑnd
    grew thhe CBD portion ᧐f hiss business. Ꭰr. Rackham qᥙickly became ɑn in-house
    CBD expert, providing guidance Car and Vehicle Delivery Services counsel
    fοr prfoper use, including evidence-based indications,
    dosing, administration, ѕide effects, drug interactions, ɑnd expectations
    of therapy.

    Ιn his spare timе, hе studies taekwondo ᴡith his son, plays in an ’80s rock
    cover band, ɑnd enjoys vacationing in Hawaii ԝith һіs family.

  7. [url=https://femaleviagra.fun/]buy cheap viagra online from india[/url] [url=https://viagragenericdrugforsale.monster/]where to purchase viagra pills[/url] [url=https://genericviagra50mgcost.monster/]sildenafil 50mg price pharmacy[/url] [url=https://tadacip.wtf/]tadacip online india[/url]