As the Ethereum blockchain becomes more widely used, the Ethereum gambling industry grows right along with it. One of the primary reasons for Ethereum’s success is that it enables smart contracts, which many feel are primed to completely change the financial industry and how transactions are conducted.
Transactions are processed through the Ethereum Virtual Machine (EVM). The security of these smart contracts protects both the gamblers and the online casinos they choose.
Bitcoin is obviously the most popular cryptocurrency, but Ethereum is a popular alternative. Both offer secure transactions and complete anonymity, but Ethereum has the edge in terms of transaction speeds, making it ideal for deposits and withdrawals over traditional top bitcoin casinos.
Best Ethereum Casino 2017 – (No Deposit Bonus)
As a cryptocurrency, Ethereum provides anonymous payments and withdraws that work around the world and process quickly. All these benefits make it a popular choice among online gamblers, and to satisfy demand, there are many online casinos that accept it. We’ve ranked them all and listed the absolute best of the best below.
Check them out and start your gambling with a deposit bonus.
How Smart Contract Betting Works
There are two methods to gambling using Ether. The one you’ll see most is simply using Ether like any other currency by depositing and withdrawing money through it. It’s essentially just like gambling online with Bitcoin or any other traditional form of currency.
All the top Ethereum casinos we listed allow you to gamble this way.
Your other option with online Ethereum gambling is making your bets through smart contracts. Several online casinos run only on the Ethereum blockchain. Here’s how this works – you deposit your Ether to a smart contract, not the wallet address for your casino of choice. The smart contract makes sure everything is random and handles payouts after each game.
Smart contract betting has a few key benefits over traditional betting, which include:
No risk of theft Payout speed Payout security
- No risk of theft – Since the casino never holds your money, it can’t take the money from you or prevent you from withdrawing it.
- Payout speed – Every time you win, regardless of how much you won, you receive a payment immediately
- Payout security – Since all payouts process through open source code, it’s impossible to interfere with them.
There’s really only one big drawback to smart contract betting, and that’s the time for the bets to go through. Technical factors with blockchain security require there to be a timeframe of at least 1 block confirmation, which lasts about 15 seconds, from the bets to when the game chooses the winning bet.
It can take multiple block confirmations when large wagers are involved, which means you could be waiting several minutes for your game.
That’s a turnoff for some players, but fortunately, casinos are working hard to solve it. One promising development is offchain payment channels that will process betting without the waiting period each time. This option strikes a balance between speeding up the betting process without any drastic security reductions.
Offchain payment channels aren’t an option for players yet, and smart contract casinos still need to use block confirmations. Despite the betting speed problems, smart chain betting is by far the most secure option for online gambling, and it will likely become very popular once offchain payment channels become available.
Top Ethereum Video Casinos 2017
Even though smart contract betting is relatively new, there are smart contract casinos available and fully functional, and there will likely be many more of them as the practice becomes more popular. We’ve ranked the online Ethereum smart contract casinos below, basing our rankings on user experience and games selection.
FAQs About Ethereum
What makes Ethereum different than Bitcoin?
For online gambling, the experience is similar whether you choose Ethereum or Bitcoin. Deposits and withdrawals operate the same way, and both cryptocurrencies are fast, secure and not tied to your identity in any way. Therefore, you couldn’t say one cryptocurrency is better or worse than the other.
There are, however, some minor differences to keep in mind.
Bitcoin has been around longer, and it’s the more stable, mature cryptocurrency. Even though every cryptocurrency can be volatile, Bitcoin is the least volatile. That’s good for online gambling, because you’re far less likely to see its price go up or down from one bet to the next. Certain online casinos use a chips system where your Ether or Bitcoin deposits become chip, and then those chips convert back into the cryptocurrency upon withdrawal. The issue with this system is that your chip value can fluctuate significantly while you gamble.
Ethereum has the edge in terms of speed. Because of Bitcoin’s scaling issues, transactions may take hours to process, which can be frustrating when you’re waiting for a deposit or withdrawal to go through. With Ether, transactions go through quickly, frequently taking less than one minute.
As previously mentioned, when you use Ethereum, you have the option of smart contract betting, which is the most secure way to gamble online. There are plans for an offchain protocol that will allow smart contract betting using Bitcoin, but there’s no set timeframe for when an online casino will offer this.
Although the two cryptocurrencies have many other differences on the technical side, the items listed above are the only ones relevant for online gamblers.
Is it safe to gamble with Ethereum?
Ethereum is one of the most secure ways to gamble online, along with Bitcoin. What makes cryptocurrency blockchains secure is what’s known as hash power. The hash power is all the energy that miners contribute to processing and verifying transactions. Higher amounts of hash power make it more difficult for any part to alter transactions. Currently, Bitcoin is the leader in terms of hash power, making it the most secure cryptocurrency, but Ethereum is close and also very secure.
The real risk is where you deposit your Ether. You want to be sure you can trust the online casino, just like if you were using any other currency. Make sure to check out our Ethereum casino reviews to see that you’re choosing a trustworthy casino.
How do I deposit using Ether?
If you’ve ever made a deposit at an online casino using Bitcoin, the process is just about the same. First, you’ll need to have your Ether, which you can buy from online exchanges, such as Coinbase. Once you have Ether in your online wallet, you can transfer that Ether from your wallet to the casino’s wallet.
To avoid any issues, there are a couple things to remember when it comes to Ether deposits at online casinos.
Despite the similarities in the two cryptocurrencies, Ether wallets work differently than Bitcoin wallets and have different addresses. Never try sending Ether to a Bitcoin wallet. The transaction either won’t go through, or you could lose your money. To verify that a wallet is an Ether wallet, check the first two characters in its address. These are always “0x” for Ether wallets.
Building off that previous point, always double check the address where you’re sending the Ether. When you’re making a transaction using a cryptocurrency, you can’t charge it back if anything goes wrong. If you send your Ether to an incorrect wallet address, you will most likely lose it. Play it safe by verifying the casino’s wallet address.
Give your deposits some time to go through. The typical online Ethereum casino displays the deposit right when you confirm it, but there are also those that go through multiple confirmations first. A confirmation takes about 15 seconds, and some casinos go through up to 30. You can find out whether a casino does this in its terms and conditions. Check those terms if you’re worried about a deposit that you just put through.