How can you be sure that when you play online in a casino, the games are fair and impartial? Well, in bitcoin casinos the use provably fair betting, which is where players can verify their own game results to ensure that games are not only fair but random too. The bonus of this is huge. Bitcoin casinos are shrouded in mystery thanks to the anonymity of bitcoin transactions, so proving that you are transparent in your processing can go a great way to addressing the fears new players may have when playing online.
On a bitcoin casino site, the casino will explain the cryptographic algorithms used in their software to ensure that their games are random and fair. Players can then test these algorithms in real time by checking cryptographic hashes to verify fairness. Cryptographic hash functions are practically unbreakable.
There are several methods out there, but the most commonly used system works like this:
A seed number is created by the casino for each bet.
This seed number is hashed and transferred to the player.
The player adds another seed, and the game plays out.
The player receives the seed that was used in the original bet. If this seed number matches the seed number they added, the bet is fair.
If however, the casino managed to manipulate the bet outcome, the hash function would have been different, and the bet wouldn’t be verified.
The player can check the seed numbers using one of the many online verifiers to confirm the fairness of their results. Some sites even offer their own verifier, although these bring up their own concerns for trustworthiness.
One benefit of using verifiable and provably fair betting is that it negates the need for third-party verification, as players can be confident in game fairness by checking it themselves.
There is a downside to being so open and honest, however. Bitcoin sites are by their very nature exposed to hackers, as bitcoin is not seen a legal tender in the eyes of the law should the currency be stolen. By allowing access to their own algorithms to prove they are fair, the bitcoin casinos are also opening themselves up to hacking attempts if there were any security issues in their open source software. Still, faced with the option of showing their ‘workings out’ or losing a potential customer, most tend to side with the one that is most profitable.