Traditional online casinos are monitored by an outside third party. In Bitcoin casinos, fairness is monitored by cryptographic formulas. Unlike traditional online casinos, in Bitcoin casinos the players themselves can double check to see if the game is fair.
How Does Provable Fairness Work?
Provably fair games use a cryptographic approach to ensure the randomness of a deal. In theory, it operates just like a traditional card deal. The dealer starts off with a deck of cards. The dealer shuffles the deck. The player cuts the deck. The dealer then deals the hand. The difference is that each action is replaced with a cryptographic “seed.” This seed is entered into a mathematical formula called a one-way hashing algorithm.
A hash function is a function that can map digital data. The initial digital data can be any size, and the function maps that data to digital data of a fixed size, or hash value. This is a convenient way to organize complicated data like DNA sequences or even names. Hash functions are used to assign a numeric value to names in a database in order to organize them. A cryptographic hash function works almost the same way. In a cryptographic hash function, data is mapped to a specific hash value. Unlike a hash function, a cryptographic one-way hash function is nearly impossible to replicate if a piece of the input value is unknown. This makes it a valuable tool for provable fairness platforms.
If both the dealer and the player each only know a part of the sequence then they cannot reconstruct the function. All they can do is “prove” it mathematically and make sure the hash values match the initial value (SHA). This makes the function impossible to guess, reconstruct, or alter. Cryptographic hash functions give dealers and players the security of knowing that the deal is totally random.
The Shuffle
While methods may vary from casino to casino, each card in a deck is assigned a mathematical value. For instance, the ace of clubs is often AC, the two of clubs, 2C, and so on. These values form the initial deck.
The initial deck is the first hash value, called the SHA. Picture this as the first shuffle. This value goes into the hash function along with the value that the player enters.
Cutting The Deck
The player's value is called the “player seed.” The player can enter any value he or she wants. Some players use software that generates a random sequence. Others use lucky numbers or words, sometimes in conjunction with a random sequence. Most casinos have a calculator with labeled fields. The player seed is entered into the player seed field. This number is entered into the function, and the result is called the final deck.
Checking The Deal
To prove the randomness of the function, all a player has to do is convert the dealer seed and initial deck into a hash. The hash should match the SHA, or initial deck. If everything matches up then the deal was totally random and therefore fair. Casinos supply a calculator to make this process very simple.
How Is This Different From Tradition Casinos?
Traditional online casinos rely on third party sources to test their sites for fairness. Responsible Gaming Assurance Companies check the sites to ensure that deals are fair and players' information is protected. A few of the better known companies are:
Players check the site's certificates to see if the site is approved. Checking to see if a site has a certificate is an easy way to determine the legitimacy of an online gambling platform.
The benefit of a certificate from a responsible gaming assurance company is that the company checks for more than random deals.
- They make sure that the game rules are followed and replicated online exactly as they are in real play.
- They ensure the game has no operational error that allows a player or casino to change the house edge.
- They check that the game remains statistically stable over time.
Advantages Of Provably Fair Casinos
Provably fair casinos are just that: provably fair. The proof is not in a certificate posted by the site. The proof is right there for the player to see. Bitcoin players tend to already possess a deeper understanding of cryptography than the average online casino player. Provably fair games offer these players the same sense of security as the Bitcoin block-chain, another cryptographic sequence. Like the block-chain, provably fair games are transparent. The dealer and the player are aware that the deal was fair, eliminating accusations of cheating.
Provably fair games do not require the same oversight as standard casinos. This is appealing to Bitcoin users who appreciate the decentralized aspect of the currency. Removing the third party keeps administrative costs down. Lower administrative costs means a lower house edge, giving players a higher return on their investment.
Disadvantages of Provably Fair Casinos
There are no disadvantages to the provably fair concept. A fair game is a fair game. That does not mean that the rest of the site is fair.
A site that offers provably fair games but does not pay the players their winnings is still technically provably fair. Sites that steal players' financial or personal information may also offer provably fair games. This is not comforting to the player when he or she finds their identity compromised.
As with any casino, players must establish that the site is a legitimate casino and not a fraudulent organization prior to playing. If you want to try your hand at a provably fair game, make sure it is at a casino that regularly receives good reviews.
The Future Of Provably Fair
Provable fairness allows the player to verify the fairness of the game using a mathematical formula. Currently this process is mostly used on Bitcoin sites where players are familiar with cryptography and randomly generated sequences. Provably fair games may grow in popularity even on traditional sites as players come to understand the process.