Provably Fair Gambling with Cryptocurrencies
Provably fair gaming is a concept associated with cryptocurrency betting. Provably fair gaming is a complete departure from legacy online gaming that relies solely on trust and the gaming site’s reputation. Online gaming provability is made possible with the gradual adoption of Blockchain and smart contracts in gambling.
But first, before going head-long into the exciting proposition this new concept has on online gaming, let’s explain what this idea means:
What is provably fair gambling?
A betting activity is said to be provably fair when there is sufficient mechanism in place that allows both the player and operator to verify the fairness of a gaming process. The concept is uniquely tied to the emergence of Bitcoin gambling which runs on a cryptographic algorithm, hence with the use of hash functions; it became incredibly difficult for external interference – that is all things being equal.
Now, you have an idea of the concept means, and I can imagine you’d want to know how this works, right?
How does provably fair gaming work?
Remember we’ve mentioned that provability relies on bitcoin gambling which in turn is powered by hashing function – now at the core of this hashing is the Blockchain technology.
So, what has this got to do with proving how fair game is – well, a lot and I will be showing you why.
Recall that most transactions conducted over the Blockchain tech are encrypted, and presently, no known technology can break the code.
So here’s what happens:
• The betting site operator creates a seed number for bet over the Blockchain tech, and it is encrypted of course.
• This seed number is hashed and sent to the player.
• The player adds a seed – that is, places their bet
• At the end of the game, the player receives the seed generated for the set
• If it matches the initial seed, the bet is verified. And this means there was no interference.
So how do you verify if an online casino is provably fair as the claimed? Yeah, I get it you don’t want to take the operators’ words for it – you want to be doubly sure before entrusting your money to anyone.
For most platforms that claim to be provably fair, they offer gamers several means to verify their claim. First, they’re open with their source code; hence any interested party can check the codes for themselves.
But, what happens if a gamer is not a programmer and cannot understand a cinch about the code lines? To cater for individuals in this category, they online casino operators usually provide other more straightforward options to verify proof of fairness.
Take for example, for an online lottery, the operator can provide a tool over which they have no control, and anyone can use it to double-check the winning numbers by inputting a publicly available hash.
The leveraging of Blockchain technology and smart contracts in gambling by online sites has dramatically improved the trust and confidence of gamers to use these platforms. It has eliminated the shadiness of the traditional online gaming while improving transparency.