Ethereum overview: what it is and how it works
Ethereum is a decentralized global software platform powered by blockchain technology. You might know it best for its native cryptocurrency, ether (ETH), which is quite popular among investors.
But there's more to Ethereum than just its cryptocurrency. Actually, it's a powerful tool for developers building blockchain and decentralized finance applications.
What's cool about Ethereum is that anyone can use it. It's designed to be scalable, programmable, secure, and decentralized, making it perfect for creating all sorts of secure digital technologies. The ETH token is used to pay for work done to support the blockchain, but you can also use it to pay for goods and services, or you can use it to gamble online.
How does Ethereum work?
Ethereum works using blockchain technology, which is essentially a distributed ledger, like a database, that stores information in blocks. Each block contains encoded data from the previous block and new information, creating an encoded chain of data that cannot be altered.
When a new block is created, it’s awarded to a validator who validates the information in the block and proposes a new one. The ether (ETH) earned from this is sent to the validator's address.
Proof-of-Stake Validation Process
Ethereum uses a roof-of-stake (PoS) validation processp, which is different from energy-intensive proof-of-work (PoW) mining. PoS uses a finalization protocol called Casper-FFG and the LMD Ghost algorithm, which are combined into a consensus mechanism called Gasper. Gasper monitors consensus and defines how validators are rewarded or punished for their actions.
Wallets
If you own Ethereum, you'll use a wallet to store your ether keys. A wallet is like a digital interface that lets you access your cryptocurrency and use it for gambling. Think of your wallet address as an email address where you can send and receive ether.
Ether itself isn’t stored in your wallet. Instead, your wallet holds private keys you use, like a password, to initiate transactions. Each ether you own has a corresponding private key, which is essential for accessing your ether. That’s why securing your keys is so important.
Can you gamble with Ethereum?
Yes, you can. Gambling with Ethereum is possible, but there's a little catch – you'll need to find casinos that accept Ethereum to do so. Don't worry, though! You have a list on the top of this page where you can find the best Ethereum casinos quickly.
In most cases, if a casino is crypto-friendly, they'll likely have Ethereum on their list of accepted coins.
Of course, before diving in, it's important to do a quick check to ensure the casino is legitimate and trustworthy. I always look for things like licensing (a Curacao license is a green light), user reviews, and security features like F2A and SSL encryption.
Also, please remember that it's all about having fun responsibly. I never gamble more than I can afford to lose, and I always keep an eye on the clock to make sure I'm not spending too much time on it, just like with regular gaming.
How to gamble with Ethereum
So, you're ready to try Ethereum gambling? Awesome! From what I experienced when I was starting out, it’s important to keep an eye on these things:
1. Find a reputable Ethereum-friendly casino:
Start by researching online casinos that support Ethereum as a payment method. To cut it down to the chase, simply check the top of the page for the best Ethereum casinos.
Now, I like to aim for the best bonus offers that match my taste. If I want to play live casino games, having a cashback offer and a deposit match is perfect. That’s why I’d go for the Betplay.io gambling site, as this casino features a 100% deposit increase up to 200 milli-Ethereum. Plus, they have a solid 10% cashback, and rakeback offers as well.
2. Create an account:
Once you've found a suitable Ethereum-friendly casino, it's time to create an account. Now, I’ll use BC.Game casino to show you how to register an account there and where to go to claim your welcome bonus offer.
First, click on the "Sign up" button at the top right part of the screen.
Next, fill in the needed info when the window pops. You only need an email address and don’t forget to check the boxes. And yeah, if you have a special Bonus Code you’d like to use, feel free to type it in the field below the password. These bonus codes are usually attached to special bonuses found on BC.Game’s promotions page.
After you click on the "Sign Up", the casino will send you a verification link to your email. Click on the "Verification" and you’ll fully activate your BC.Game casino account.
Login Pro Tip: When you want to log in instantly without typing your password and email, you can connect your personal account (Google, Telegram, MetaMusk, etc.) and do it in a moment. You’ll find this at the bottom of the Sign up and Sign in window.
3. Deposit Ethereum:
After you've created your account, the next step is to deposit Ethereum into your casino wallet. Let’s continue with the BC.Game casino as an example.
Now, the first thing you’ll see when you log in is the big "Deposit" button right next to your profile icon (top-right). Click on it and start your depositing.
After that, you need to choose the Ethereum coin and the network for the transaction. Be aware of the network you choose; it’s important to match the network from the sending address.
After successfully choosing the most convenient network, it’s time to copy the address and paste it on the page from where you’re sending the ETH from. I’ll use the Binance for this example.
So, first, copy the address:
Next, paste it into the withdrawal window at your Binance account. Also, don’t forget to choose the same transaction network you used on the BC.Game. In this case, it’s Ethereum (ERC20).
Now, as you can see, I’m using the WBETH coin, which is actually the Wrapped Beacon ETH. It’s used for smaller transactions, usually for depositing funds on iGaming sites. Now, what I almost forgot to mention is the withdrawal fee, which is quite common when doing transactions with ETH.
In this case, the fee is quite small, 0.0022 WBETH.
4. Choose your favorite games:
With your Ethereum deposited and ready to go, it's time to explore the casino's game selection. Now, this part I leave all to you. After all, no one has the same taste when it comes to gaming at an online casino.
But here’s what I could recommend.
If you like to go for Ethereum slots, search for well-known titles like Gonzo, you’ll see 3 different slot titles on BC.Game casino.
5. Place your bets:
Once you've found a game you like, it's time to place your bets! Simply select your desired wager amount; I suggest you take things slow. After that, simply hit the "Spin" button to get the action started.
Or, if you prefer playing Ethereum blackjack, simply click on the ‘’Deal’’ button to see the cards.
6. Enjoy responsibly:
Remember, gambling should always be fun and entertaining. Only wager what you can afford to lose, and don't chase your losses. If you ever feel like your gambling habits are getting out of control, don't hesitate to reach out for help.
Can you gamble using an Ethereum app?
Yes, you can definitely gamble using an Ethereum app! With the rise of decentralized applications (dApps) powered by Ethereum, there are now plenty of options available for those who prefer to gamble on the go.
Now, the thing is that you have to find an online casino that supports Ethereum and has an app. From what I’ve seen, a popular choice would be the Betplay.io app, as it’s designed to mirror the website, but it works way faster.
Also, there’s a cool thing with this app - it allows you to customize it in the settings area.
Pros and cons of playing at an Ethereum casino
As with any other coin, gambling with ETH has its own benefits and drawbacks. My personal experience is that Bitcoin gambling is a bit faster due to the Lightning Network feature. But playing at an Ethereum casino has its own benefits. Let’s see them:
Advantages of gambling at an Ethereum casino
- Fairness you can trust: Ethereum casinos use smart contracts to ensure games are fair. You can see exactly how the game outcomes are determined.
- Rock-solid security: Transactions on the Ethereum blockchain are super secure. They're recorded on a public ledger, so they can't be messed with or leaked like some centralized systems.
- Quick and easy: Ethereum transactions are fast. You won't be waiting around for days to get your winnings – they'll be in your wallet in a matter of minutes.
- Keep your privacy: Ethereum gambling lets you keep your privacy intact. You don't need to give out any personal details.
- Save your cash: Sending Ethereum is way cheaper than using credit cards or bank transfers. You'll save big on fees, leaving more in your wallet for playing.
Downsides of gambling at an Ethereum casino
- Rollercoaster ride: The value of Ethereum can change from one day to the next. That means the amount of ETH you deposit could be worth more or less when you cash out.
- Tech hurdles: Managing cryptocurrency can be a bit tricky if you're new to it. You'll need to get the hang of wallets, private keys, and transfers.
- No takebacks: Unlike traditional casinos, where you can sometimes reverse a transaction if something goes wrong, Ethereum transactions are final.
What is the best Ethereum wallet for gambling?
When it comes to gambling with Ethereum, having a solid crypto wallet is key. Let me walk you through some of the best options out there:
1. MetaMask.
Ah, MetaMask – the go-to for Ethereum fans like myself. It's so easy to use and works like a charm with all those
As a browser extension, it's right there whenever I need it, making transactions a breeze. The interface is clear, easy-to-navigate, and it allows you to change to other coins as well.
2. Exodus.
If you're new to the whole crypto gambling scene like I was a while back, Exodus is a great place to start. It's super easy to use, with a simple interface that takes away all the confusing stuff, like swapping between coins or transferring funds.
With support for over 100 currencies, you can spread your bets around and try your luck on different sites. And being able to swap currencies right in the wallet? It's a game-changer, really.
3. Mycelium.
Now, if you prefer doing everything on your phone, Mycelium is your best buddy. It's designed just for mobile users and comes packed with privacy features to keep your transactions under wraps.
Plus, it plays nice with hardware wallets for that extra layer of security. Perfect for those of us who are always on the move and need a reliable way to manage our funds.
4. Trust Wallet.
Last but not least, we've got Trust Wallet - the ultimate all-rounder for us Ethereum gamblers. With its user-friendly interface and cool features like checking the history and even earning through staking, it's perfect for anyone looking for a simple yet effective way to manage their funds.
And being able to switch between assets on the fly? It's a lifesaver for those of us who like to hop between different online casinos.
