Is Ethereum Gambling anonymous?
When Satoshi Nakamoto created the Bitcoin infrastructure, one of the key ideologies he afforded to its technology was that users could send and receive electronic cash without revealing their true identity. This is certainly holds true for the majority of de-centralized cryptocurrencies. Bitcoin’s nearest rival, Ethereum, not only allows the online community to remain anonymous when transacting with one another, it also provides the framework for users to create smart contracts based upon pre-defined rules. As a result, this has created a wave of opportunities for the online casino industry to offer its players an anonymous platform when depositing, wagering and withdrawing funds.
The Status Quo
Imagine you wanted to send some funds to a close relative living overseas. What options would you have? Well, conventional methods include a bank wire, Western Union or Money Gram. Either way, the common denominator is that each mechanism requires an intermediary to process and validate the transaction. This means that you would be required to send your funds to a third-party and subsequently, an element of trust would need to exist. Furthermore, you would also be required to identify yourself, whether that is by submitting electronic copies of sensitive documents, or by walking in to your local branch with a passport. However, the recent wave of cryptocurrency has created a new way of performing simple everyday tasks, without needing the services of a middleman.
When accessing Ethereum’s cryptographic framework, individuals are not required to reveal their true identity. Instead, users acquire a public address, which is similar to a bank account number. However, although the public address is available to view on the public blockchain, there is no link to the owner’s real name. Therefore, when sending or receiving funds, Ethereum allows individuals to send and receive funds anonymously. This is further supported by the de-centralized system, whereby unlike a traditional financial institution, Ethereum operates on a peer-to-peer, trust-less framework, whereby no central authority controls the platform. Instead, transactions are regulated by the mining community, who are rewarded with digital currency in return for using their computing power to solve algorithmic problems. Basically, these complex mathematical solutions confirm that transactions are legitimate, they restrict the ability to double spend, and protect the system from abuse.
To truly remain anonymous, there are some simple, yet effective actions that Ethereum users can take. Firstly, it is wise to create a new public address each time a transaction is made. There is no limit to the amount of addresses a user can create, and by doing so, historical transactions on the blockchain are limited. Furthermore, it is also advisable to use an anonymous browser such as Tor, which will keep the user’s true location private.
Ethereum Betting – Why Gamble Anonymously?
The anonymous mechanisms listed above has created a plethora of benefits for those who like to gamble anonymously online. The key difference between an Ethereum casino and a traditional fiat casino is that users can keep their identity discreet. To illustrate this disparity, conventional fiat casinos must be licensed by their national regulator before they can legally operate, and therefore must adhere to a variety of stringent customer due diligence laws. This includes a requirement to request various types of documentation from the player, such as a passport and bank statement. More extreme cases require the player to get documents signed by a government official, or even take a photograph holding the documents next to the player’s face. Ethereum casinos remove this unwanted burden, by allowing players to gamble online without needing to submit countless documents – thus, achieving anonymity. Moreover, sensitive payment details are also required by fiat casinos, such as a debit or credit card. Many players do not feel comfortable providing such information, as either an internal or external breach of security could be costly. Deposits and withdrawals will usually appear on an individual’s bank statement, however if using a betting operator that facilitates Ethereum, then no such trail exists. This is because users need only transfer Ethereum from their digital wallet, which will securely, and almost instantaneously, fund their betting account.
It is also important to recognise that some nations completely restrict their citizens from gambling – potentially both online and land-based. Using a cryptocurrency platform such as Ethereum to gamble online protects the user from governmental oppression, subsequently allowing law abiding citizens to spend their own money how they see fit. If players are located in a territory where online betting is blocked, or where online activity is closely monitored, then using an anonymous browser such as Tor would alleviate these issues.
The cryptographic phenomenon has created significant benefits to a range of stakeholders, subsequently transferring more control to the hands of the consumer. One of the most fundamental characteristics of the de-centralized network is that it allows users to protect their identity. The Ethereum blockchain is a great success story of this ideology, and the online gambling industry is not immune from the digital revolution. Players from all over the world can now gamble anonymously, without fear of persecution from authoritarian regimes who attempt to restrict their citizens from enjoying the thrills of online betting. Anonymous Ethereum gambling has also removed the draconian burdens that regulators force online operators to install, such as requiring endless amounts of identification and documents. Such technology can only grow stronger.