In this guide, we are to reveal the key principles of provably fair games. Also, we will list some trusted casinos that offer this type of gambling for customers. Finally, we will touch on the idea of smart contracts for casinos and whether they will mark a new era of fair gambling.
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Often, online casino games raise concerns among gamblers. The most popular issues relate to trustworthiness of the casino and reliability of the games. In fact, these fears are not baseless. It’s really difficult to check the fairness of any game without access to the results of random number generators (RNGs). There are cases with rigged software, when online casinos change outcomes in their favor and customers are unable to reveal this.
With the rise of Bitcoin gambling and blockchain-based casinos, gamblers all around the world can rest assured that the game outcomes are fair. Now, everybody can check the real results if the chosen casino supports cryptocurrency games. In a nutshell, it’s enough to compare hashed seeds before and after the roll. This concept is known as provably fair gambling which means that both players and casinos can see the results and be sure in their transparency.
How It Actually Works?
‘Provable fairness’ is a new approach in gambling that is based on encryption principles for high-end protection of data. It utilizes three main variables: a server seed, a client seed, and a nonce. A real money casino that is powered by blockchain-based system can create a unique hash seed and send it to a player that will then check the fairness using its own seed. Let’s look at this process in more detail.
How Cryptographic Hashing Is Used in Provably Fair Casinos?
Well, it’s important to agree on terms now. A server seed is an encrypted multi-digit sequence provided by the casino. A client seed is a similar number generated by the player. A nonce is a variable that starts with 0 or 1, and increases by 1 with each new bet. The process of a roll verification includes the following steps:
- The casino creates a dedicated server seed for a given bet.
- It hashes this number with SHA256 or other algorithm, and sends it to the player.
- The player creates its client seed and makes his/her bet.
- After the roll is complete, the player gets an unhashed version of the client seed.
- The player inputs three variables to check the outcome.
To check the result, you have to generate HMAC. For example, with this service, you can input your client seed followed by the nonce in the String line. Use ‘aclientseedname-0’ for the first bet and ‘aclientseedname-1’ for the second one if the numbers start with 0.
Then paste an unhashed server seed in the Secret Key field, and choose a hashing algorithm provided by the chosen casino. Press Compute HMAC to get a sequence. You need the first five characters. Enter them in the Convert line here and press To Decimal. Finally, use any calculator or Google to solve this: theconvertednumber%(10000)/100.
Alternatively, you can use an automated verifier. With this tool, it’s enough to input all variables, and the software will calculate the results for you. There are dozens of verifiers for different casinos, e.g. DuckDice.
The randomness in traditional and provably fair casinos is similar. All sites use pseudo-RNGs with computer algorithms. True RNGs based on radioactive decay are used rarely.
Are There Any Casinos that Already Apply It? Use Cases
Actually, it is surprising that traditional casinos still survive in the world of provably fair gambling. Right now, it may be a bit difficult and weird for gamblers to manually check the game outcomes using all these seeds and hashes.
But the approach will become simpler over time, as even now there are browser extensions that do this job for you. Provably fair casinos have the upper hand and their number is increasing. Let’s look at the best of these gambling platforms:
|1||Fortune Jack||0.002 BTC||25 free spins for new users, 110% up to 1.5 BTC and 250 free spins for the 1st deposit, 50% up to 3.5 BTC for reload||In Dice, you should specify the bet amount and conditions. It’s also possible to enable auto roll with the increasing bet size|
|2||Bitstarz||0.0003 BTC||20 free spins for new users, 100% up to 1 BTC and 180 free spins for the 1st deposit, 50% up to 0.25 BTC for reload||In Plinko, you choose the bet amount, risk multiplier, and number of lines. Auto betting is supported too|
|3||DuckDice||0.0000001 BTC||Holiday bonuses to Easter, New Year, Christmas, and birthdays; progressive jackpots; affiliate program; Bitcoin faucet; and even interactive games||In DuckDice, you bet on dice rolls. There are various betting options, including auto betting and flash betting|
These casinos feature a few important parameters that we want to disclose here:
- Fortune Jack. This instant-play casino is licensed in Curacao and unavailable for players from Asia, Australia (New South Wales), Italy, Sweden, the UK, and the USA. It accepts BTC, ETH, LTC, DOGE, DASH, XMR, and BCH. To register, you need to specify your email, username, and country only. Fortune Jack lists four provably fair games, including PLINKO, HILO, DICE, and MINES. It also has a randomly fair ADRENALINE game.
- Bitstarz. This casino is both instant-play and mobile. It doesn’t provide services for gamblers from Asia, Australia (New South Wales), Curacao, France, Italy, Netherlands, Spain, Sweden, the UK, and the USA. It supports fiat currencies and BTC, ETH, LTC, DOGE, and BCH. You have to reveal more personal info to be able to play here. Bitstarz lists 75 provably fair games with different algorithms for different types.
- DuckDice. The platform with only one main game – dice. It supports cryptocurrencies only, including BTC, ETH, DOGE, LTC, DASH, BCH, XMR, XRP, ETC, BTG, ETC, XLM, ZEC, and USDT. The platform is licensed in Curacao and provides services for citizens of jurisdictions with legalized online gambling. You also can access Bitcoin faucet, coin rains with giveaways, tips, affiliate program, and bonus games. It’s possible to gamble via mobile.
Smart Contracts as a Boost to Provably Fair Gambling
Apart from traditional centralized casinos that accept cryptocurrency and use pseudo-RNGs with visible seeds, there are more innovative gambling platforms. They are completely based on blockchain, so they are fully decentralized and independent of private groups.
Anybody can access them and wager some crypto coins to play games. Decentralized casinos also utilize smart contracts to simplify the gambling process, remove third parties, and deliver even higher transparency. Put simply, a smart contract is a code that includes an agreement with predefined rules and conditions.
It works on condition-based principles aka IFTTT (If This Then That) being self-verifiable, self-executable, and tamper-proof analog to current third parties: processors, casinos, etc. You can find more insights at Blockgeeks.
Thus, a player can deposit money from the crypto wallet into a smart contract directly and play without long registration. Often, smart contracts also oversight the fairness thanks to extra conditions.
Examples of casinos that use smart contracts are as follows:
- Edgeless. This system is based on the Ethereum platform and has native EDG tokens. Smart contracts find and publicly reveal all the events that occur in the casino in real time. Thus, it’s technically impossible to cheat.
- FunFair. This platform provides for creating blockchain gambling sites. The ecosystem is also fuelled by its own FUN tokens based on the ERC-20 standard. The games listed across all FunFair-made casinos are powered by smart contracts and RNG software.
- Wagerr. Unlike casinos, this system is designed for sports betting via blockchain. It uses the Ethereum framework with WGR tokens to allow gamblers to place bets. Each wager is recorded as a single block and overseen by a dedicated application-specific smart contract.
Generally, provably fair gambling is a thing of the future. Old-fashioned casinos are slowly losing the players’ trust while blockchain platforms are gaining it. Once a casino can ensure that each bet and each game are totally unbiased, the players get much more confidence and can enjoy the gameplay without concerns.