Transparency is a major flaw in online casinos. A fair chance of winning is all that a player seeks from online gambling. However, betting on online casinos puts bettors at risk of being defrauded as many gamblers have their fair share of doubt on the fairness of these casinos. From a technical perspective, it is quite natural to suspect foul play, given the technology employed by online casinos makes it very easy for them to meddle with the outcome.
However, with the emergence of cryptocurrency casinos, a new mechanism evolved known as ‘Provably Fair Mechanism’ that addresses the lack of transparency in legacy online gaming. The new fairness algorithm makes it impossible for casinos or third-party participants to cheat or change the outcome of a roll. Such a mechanism is crucial for establishing credibility, trust, and legitimacy in the online gambling ecosystem.
What is a Provably Fair Mechanism?
The Provably Fair Mechanism is a blockchain-backed RNG system that registers all transactions such as bets, prizes, and outcomes on a public ledger. And with smart contracts in the picture, the entire gaming process is public and governed by a code. It does not offer any opportunity for manipulation or human interference.
In contrast, in a traditional online casino, the chances of manipulation are high since all gaming processes occur behind the scenes. Most traditional casinos relied on third-party certification to verify the transparency of their operations. With the Provably Fair Algorithm, third-party certificates have been made obsolete. This means that the services of the independent software providers are no longer necessary for casinos.
How It Works
It’s a cryptographic hash function; a one-way algorithm implemented to ensure that neither the casino nor the player can know the cards before the game starts. The main components of the system are client seeds, server seeds, and hashing function.
The casino then uses an algorithm with a random number generator to create and shuffle new decks provided with an encrypted hash that combines two variables: the server seed and the client seed.
Referred to as the digital fingerprint, the hash of the server seed is received in advance and is encrypted so that the player can be confident that it cannot be changed retrospectively.
One of the main advantages of a provably fair system is that it allows users to see what happens behind the scenes. Plus, the algorithm is based on mathematics that guarantees that no one – the house or the bettor, can know the game’s outcome before it starts; neither can influence nor manipulate the outcome.
For instance, let’s consider CryptoPunt – an upcoming blockchain-powered gambling platform, and how it uses provable fairness.
Provable Fairness On CryptoPunt
CryptoPunt is a fully decentralized, blockchain-based gambling and gaming platform. It guarantees a fast and secure gambling ecosystem by leveraging Polygon – a layer 2 Ethereum scaling solution. It boasts a verifiably fair system where all bets are registered on the public ledger.
Verifiable and Provably Fair
CryptoPunt broadcasts all wagers and outcomes on the Ethereum blockchain via Polygon’s Layer-2 scaling solution. It allows bettors to assess the fairness of each outcome. To further bring trust into the ecosystem, CryptoPunt uses an open and auditable random number generator algorithm. This means anyone can verify the fairness of the platform.
CryptoPunt is a fully decentralized gambling and gaming ecosystem. It is free of all third-party or intermediaries, which means there is no human interference. The system is entirely governed by smart contract law. Plus, bettors do not have to create accounts, enable KYC, or remember passwords. Instead, it allows users to sign-up using a Web3 wallet like MetaMask, MyEtherWallet, or Coinbase.
Unlike in other blockchain-based casinos, you are not required to deposit or withdraw funds. In CryptoPunt, once you place a wager, the funds are deducted from the Web3 wallet, and winnings are instantly deposited into the wallet. As it is a decentralized platform, there is zero chance that your account will be blocked.
The provably fair mechanism is a significant revolution that brings more accountability, fair play, instant payouts, and guaranteed fraud prevention. While many other casinos use the provably fair system, CryptoPunt is pioneering the concept with a fully decentralized gambling and gaming platform.