Blockchain has spread its wings and has now penetrated the gambling industry. And interestingly the Ethereum blockchain is one of the pioneers on this front.
In this article, I’ll be going through how the Ethereum network can be used in blockchain gambling.
What is The Ethereum Blockchain?
Table of Contents
Ethereum blockchain is a robust, public, decentralized database. Blockchain projects are technically databases. So there’s nothing mysterious about them.
With databases, there’s always someone that controls everything and with this control comes the ability to make changes. Now, this is where the Ethereum blockchain is different.
With the Ethereum blockchain, there are no central authorities in charge of its operations. As a result, until a consensus is made, changes in the database can’t be made. A vast number of the members of the network have to agree.
It is what makes Ethereum blockchain truly decentralized.
What is Blockchain Gambling?
To truly understand blockchain gambling, let’s take a step back and talk about centralized or non-blockchain gambling.
With centralized gambling, you transfer your Ether to the owners of the game. These game owners record your transaction in their database which appears as numerical symbols in your account. At this point, you have no say in what happens.
Even though your betting stats are updated quicker than on a blockchain database, you still have to have faith in the game owners. This might be a bit risky because once you’ve sent your Ether to the platform, there’s no going back.
You just have to hope these game owners have enough money not to wake up one morning and shut down completely before paying you back. You stand the chance of giving up your money in the blink of an eye.
Now, this brings us to blockchain gambling. The latest article from my favorite writer at ICO pulse confirms that in a casino that accepts bitcoin you don’t always have to provide your details to play. Plus, you never have to transfer money to any central body or third party.
There is also no database that is controlled by an anonymous game owner. Instead, you bet or play right from your personal, local e-wallet. You have full control of your funds, so you don’t need to trust anybody but yourself.
The Ethereum blockchain has a Smart Contract feature which you use to send funds from your wallet directly. These Smart Contracts process your bet and transfer your winnings back to your Ethereum wallet.
The only thing you’ll be trusting here is the Smart Contracts which is a verified, public code that is part of the decentralized, public Ethereum blockchain.
However, one thing you should take note is that bet processing is slower than in centralized gambling.
Before we end
With the Ethereum blockchain being robust, there’s little to wonder how it has been able to penetrate the gambling industry. All you have to trust in blockchain gambling is yourself and Ethereum’s Smart Contracts. Well, that’s much better than running the risk of losing your money to some game owners.