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Provably Fair Bitcoin Games

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Overview

Complete fairness is key in any game of chance. If players do not trust an online gaming system, they will be less inclined to place bets on such online gaming facilities. The Blockchain technology has brought unprecedented benefits to online transactions, revolutionized online gaming, and has increased the overall data integrity. One of the key milestones of a Blockchain technology is its ability to verify the correctness of data by use of public and private keys provided to the individuals engaging in any online transaction. This same technology has been applied in the online gaming world to create provably fair bitcoin games whose outcome can be tested for fairness.

 

Provably Fair Bitcoin Games: The Underlying Principles

The provably fair principles were developed in a bid by the bitcoin game operators to prove to their players that they were not manipulating the outcome in their favor but the results were entirely dependent on chance. Such a proof is essential as it increases the trust the players have over an online casino and eliminates third-party system auditors since the players themselves can prove whether the outcome was fair and not tampered with.

 

How the Provably Fair Algorithms Work

There could be variations in the application of provably fair algorithms but the fundamental principles are similar. The algorithms employed generate cryptography hash values. The probability of making a correct guess of a generated hash value is theoretically possible but only after exhausting all the possible outcomes which run to the tune of million possible outcomes. Therefore, it is practically impossible to get a right guess of a hash value due to the high degree of encryption involved.

 

When the player places a bet, the casino system randomly selects a seed which will be used to generate hash values. A hash function integrated within the casino systems is then used to generate a hash value based on that specific seed selected. After this, the generated hash value is sent to the player. This hash value is synonymous to the public key sent by data encryption systems.

 

The player is then prompted to provide their own client-side seed. After the outcome, the player is provided with the seed used in this specific game. The player can then choose to verify this provided seed. If it is the same as that used initially the outcome is verified. If any manipulations were used, the hash function generating the hash value would change and thus the seed provided at the end of the game would not match the seed used to generate the outcome.

 

The verification process aims at checking whether the game was entirely based on a random occurrence or the system had been programmed to give outcomes which favor the casino operators. Depending on the type on provably fair bitcoin casino, the verification process will vary from one casino to another. However, most bitcoin casinos make every effort to see to it that the verification process is simple, transparent and easy to understand.

 

Advantages

  1. High Degree of fairness
  2. There is no need for third parties to verify the fairness status of such a casino
  3. Trust- Provably fair online games attract more players since the players feel that they can trust these operators to deliver legitimate outcomes.

 

Disadvantages

A programming loophole may expose the casino operators to hacking attempts. If the hackers detect a loophole in the system, they can easily exploit it to play games whose outcome favor them. Thus, a high degree of expertise is needed to set up a provably fair bitcoin games casino.

 

Conclusion

Before the advent of Blockchain technology, salient challenges on the methods which could be used to prove the fairness of the online games existed. Third-party organizations such as government bodies were the ones used to verify the fairness of online games. But these were not effective since these methods could not be used to verify each and every game outcome. This said, there are still online games which do not have a provably fair option for their gamers and this does not outrightly imply that these operators are unscrupulous. However, for those who would like to play online bitcoin games, there are a wide array of provably fair bitcoin games from which a player can choose from.

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