Online casino players used to have to put their trust in the game providers and rely on the random number generators to produce results. Licensed operators are subject to testing and auditing by the regulatory agencies, but players weren’t able to check for themselves.
Provably fair technology takes a different approach. It’s used by the best Bitcoin casinos and other gambling establishments that rely on blockchain technology. It uses cryptographic methods to allow players to check whether a particular result was generated according to the casino’s stated rules.
In this article, we’ll go over how provably fair casinos work and why they are taking on the industry.
What Is a Provably Fair Casino?
A provably fair casino is an online gambling platform that allows players to independently verify the results of supported games using cryptographic information supplied by the operator.
These establishments don’t ask the players to trust them, but provide a process for every player to verify that the games aren’t rigged and that every player has the same chance of winning regardless of the size of their wager.
Games such as dice, crash, roulette, Plinko, and other simple casino formats can use seed-based systems to generate outcomes that players can subsequently check.
The basic principle behind the process is known as commit-and-reveal. Before any game is played, the casino creates a secret server seed and publishes a cryptographic hash of that seed. Since it’s hidden, the players can’t use it to predict results.
Afterward, the casino reveals the seed, allowing players to check whether it matches the original commitment.
The Three Keys Behind Every Verified Result
There are three key pieces of information behind verified casino results. These are: the server seed, client seed, and nonce.
Server seed
The server seed is a randomly generated value created by the casino. It remains hidden while players are making bets. Before the game begins, the casino can publish a hash of the server seed. A hash is essentially a unique digital fingerprint. If the casino tries to manipulate the results and replace the original server seed with another value, the hash will be different.
This is why the casino can’t replace the value once the players have already made their bets.
Client seed
Depending on the casino, a client seed can be generated automatically or selected by the player. It allows the player to control the value and therefore add another layer of transparency to the process. The casino cannot simply select a server seed after seeing the client’s seed if it has already committed to the original server seed through its published hash.
Nonce
The nonce is the counter that increases when new bets are made. For example, the first bet could use nonce 0, the next nonce 1, followed by nonce 2 and so on. That way, the identical seeds won’t generate the same result for every wager.
How Players Can Verify a Game Step by Step
The process for verifying the fairness of a game is a complex one, but the player doesn’t need to understand the cryptography in order to use it.
The casino generates a server seed.
The operator creates a secret server seed and calculates its hash. The hash is displayed before the relevant games are played.
A client seed is provided.
The player gets the seed by choosing one or by having the casino or even their browser generate one for them.
The game produces its result.
The casino’s system combines the server seed, client seed, and nonce using its published algorithm. Cryptographic functions are then used to produce the value through which the result of the game is derived. There are many such functions, but HMAC-SHA256 is the most common one.
The server seed is revealed.
Once the seed is rotated or the verification period begins, the casino reveals the previously hidden server seed.
The player checks the hash.
The player then hashes the revealed server seed and compares it with the hash that they’ve had before the bet was even made. If they match, it means the casino has used the same server seed that it has committed to earlier.
The result is reproduced.
In the final step, the player can enter the server seed, client seed, and nonce into the casino’s verification tool or use a verifier of their own. It should produce the same results.
What Games Usually Support Provably Fair Systems?
The games that usually support provably fair systems are available at some of the best Bitcoin casinos. CCN and other publications following crypto have written about the use of digital currency to make wagers. They allow players to make quick wagers without providing personal data. The provable system is especially important for games of luck.
Dice games are one of the simplest examples. A hash-derived number can be converted into a value within a defined range, such as a number between 0 and 99.99.
Crash games also use cryptography to determine what the multiplier will be for each round. Some implementations use hash chains rather than the exact seed structure used by other games.
Roulette, Limbo and Plinko can similarly convert cryptographic output into predetermined positions, numbers or multipliers.
The process can also be used for some card games and table games. However, it’s usually much more complicated since shuffling the deck can create multiple iterations.
Slots are among the most popular gambling games, and they don’t use this system of verification at all. They commonly rely on random number generators that are independently tested and certified.
It’s important to note that it doesn’t mean that the games that don’t use the verification systems are unfair. It just means their verification models are different.
Is Provably Fair Better Than a Licensed RNG Casino?
Provably fair casinos use the latest technology to allow each player to determine the fairness on their own. Does that mean there’s no longer a need for licensed casinos? It doesn’t seem that way just yet. It doesn’t mean that a casino is automatically trustworthy in every other respect. For instance, it does not prove that withdrawals will be processed, customer funds are secure, or the operator follows responsible gambling requirements.
All of these features are just as important as the fairness of the individual game itself. They are also all covered by the process of licensing a casino, and the quality of those features is constantly tracked and analyzed by the licensing bodies.
To Sum Up
Provably fair casinos are on the rise, as they allow the players themselves to check if a particular game result was generated according to a predetermined system. This is done by combining server seeds, client seeds, and nonces. Players can reproduce supported results and identify potential discrepancies.
The transparency tool helps the players establish a relationship with the casino, but it isn’t a substitute for the process of licensing the casino with the proper governmental institutions.
