What is the Edgeless Casino?

Monday, 18 Sep 2017 12:21

What is Edgeless

Edgeless is a decentralized, smart contract-based casino. The platform will be built on the Ethereum network, meaning that all key operations will be regulated by smart contracts. The Edgeless team proud themselves on offering, not only a 0% house edge, but also the most transparent gambling service on the market. But is it true? Let’s take a look.

House Edge

Thanks to cryptocurrencies, gambling is now cheaper for the player. Either because of smaller house edges or less rake, it probably never was so cheap to gamble in history. And as far as history is concerned, gambling always existed. Because wherever people gathered, people gambled. Cryptocurrencies also made gambling online an anonymous experience (provided the user knows what he’s doing), and allow for quick and deposits and withdraws with much smaller fees than traditional banking.

Edgeless builds up on top of all these innovations, and offers a combined house edge of 0,83% on their Blackjack and Video Poker games, and 0,05% on their Micro Limit Dice game.

The House Edge is a term used to describe the mathematical advantage that the gambling game (therefore the commercial gambling venue) has over you as you play over time. This advantage results in an assured percentage returned to the house over that playing time, and for you, it is an assured percentage loss of what you bet.

These small edges offered by the Edgeless casino are reliant on two factors: players making imperfect plays, or mistakes, and the gambler’s ruin. Gambler's ruin happens when a player, with finite wealth, loses in a fair game, where both sides have a 50% chance of winning, because the other player had infinite wealth. Put in simple terms, a larger bankroll can absorb higher levels of variance that small bankrolls can’t. So, although it’s not an exact 0% house edge, it should still be any gamblers dream to play with such a low edge.

Although these are not traditional casino games, the platform also offer sports betting services, where the betting is done between players and the house takes an average 4% rake, and a monthly lottery, called “Edgeless Lounge”, comprised of 40% of all Edgeless casino profits for that month.

Transparency

Cryptography enables players to know that they are truly playing a fair game. This is called “provably fair”, a method that proves that the random number generator is truly random and fair. Here’s an example:

In Blackjack users can provide their own number seed or get a randomness generation seed from random.org or Mozilla crypto library generated randomness. This client’s seed is used along with the casino’s seed to ensure that the shuffling process is fair. Both numbers are blended into a random number which determines a final outcome.

This means that even if the casino changes its own seed or randomness generation formula, the final outcome would still depend on the random seed that the player provides.

Finally, since the casino runs on smart contracts, all operations can be seen on the blockchain and it is also impossible for the house to freeze your account without a motive, or appropriate funds for their own.

Tokens

Edgeless will distribute a maximum 500,000,000 Edgeless tokens (EDG). These tokens are based on the Ethereum infrastructure and represent ownership rights over the dividends that are to be destributed by the Edgeless Casino from the profits they attain. Edgeless recently held a crowdfunding campaign, that started on the 28th of February and ended in the 21st of March.

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