Provably Fair Gambling
The system is based on the fact that bitcoin uses a cryptographic algorithm using hash functions, which are very difficult to decode or break.
What is Provably Fair Gambling?
Open Algorithms are used by online gambling operators, in the form of Random Number Generators, Hashing or Random Seed Generation to verify each transaction that takes place on its site. Each game or transaction has its own algorithm for checking its particular fairness.
Blockchain platforms are 100% transparent and immutable. Purchases and pay outs are open to all on public ledger which cannot be tampered with. A program code can oversee the entire process, and zero human interference is involved. The specifics of how the system work are quite interesting.
How Does Provability Work
The application of Provably Fair systems may vary a little bit from game to game but the principle is the same for all single player games. Multiplayer games like poker are a little more complicated. The key to the Provably Fair system is that it uses a cryptographic hash which is considered unbreakable for practical purposes. This ensures that the information sent to the player and casino is unknown and can be deciphered. The way this happens is:
- The casino creates a seed number for the bet
- This is hashed and sent to the player
- The player adds a seed and the bet plays out
- At the end of the bet the player receives the seed used in the bet
- If it matches the bet is verified. No interference occurred!
- If the casino tried to manipulate the bet in any way the hash function would be changed and the bet would not be verified. For the first time in gambling history a bet pay out can be verified by a player in real time!
How is it Used by Both Casino and Player to Ensure Fairness?
Checking underlying fairness involves verifying that each game works as advertised and that there are no errors leaving room for unfair play. An online casino issues a seed number or randomly generated number to the player which is hashed or encrypted. This is suitably buffered to ensure the same hash doesn’t reoccur. Once a player has finished a transaction or game, they can use these seeds to prove fairness. The player will do this by using the algorithm, hashes, and seeds as well as the events of the transaction to check that the outcome is indeed Provably Fair.
If something has transpired which is not fair, the seeds at the end of the game won’t match, and this will prove the outcome to be unfair. This process can also be carried out on blockchains other than Bitcoin’s.
Which Other Cryptocurrencies are Involved in Provably Fair Gambling?
The expansion with the creation of more cryptocurrencies which are becoming significant for gambling has opened the door for Provably Fairgambling to move onto other blockchains. Etherium, Dogecoin, Litecoin and many more have become platforms for Provably Fair gambling as well. Nevertheless, it is important to remember that Provably Fair gambling is a blockchain-based feature.
Provably Fair Gambling, which came about through Bitcoin’s blockchain for the first time in history, has presented us with gambling that is 100% transparent and secure. This gives players peace of mind that there are no background manipulations taking place and that the outcomes of the games they play are verifiably random. Inevitably this will draw more players to cryptocurrency gambling.
Tips on playing bitcoin games
While the iGaming scene can be thrilling and enticing, carefully read these tips before you start placing those monetary bets.
1. Only play with provably fair websites — always stick to websites with provably fair games as you can verify if the game is fair or not. The chances of a game that has not been proved provably fair being rigged is quite high, so try to avoid them at all costs, no matter how attractive the website is or what opportunities they claim to offer.
2. Always play with a budget cap and stop when you’ve reached it — The most important rule of online gambling is to stop when you can no longer afford to lose.
3. Know your limits — Don’t be greedy. It is easy to get caught up in the appeal of winning big, but stop when you think you have made a reasonable profit. Betting non-stop only increases your chances of losing.
While gambling strategies aren’t a sure-fire way to win, it’s smarter to consider how you plan on winning while playing a dice game, rather than placing bet after bet.