The FINANCIAL - Are Bitcoin Gambling Games Provably Fair?

Are Bitcoin Gambling Games Provably Fair?

Are Bitcoin Gambling Games Provably Fair?

Over the years, Bitcoin has become the future in the online gambling industry. It is a decentralized cryptocurrency that was created in 2009. Bitcoin users can mine, exchange or use this cryptocurrency to buy and sell things.

Since it is not controlled by any government, financial institution, or authority, every transaction is direct and absolute. Every transaction made with Bitcoin is recorded publicly and this eliminates fake versions. Some people including businessman and innovator Elon Musk have publicly supported Bitcoin and other cryptocurrencies.

Bitcoin has been steadily growing in the market with big brands like Paypal accepting payments and selling Bitcoins on their platform.  As the use of bitcoin continues to grow, most businesses are now using it and the Bitcoin gambling casinos have not been exempted.

Since Bitcoin is deregulated, there is no governing body that can verify and ensure that there are no scams in these online casinos. One way to create this trust between the player and casinos is to implement provably fair Bitcoin games.

What is Provably Fair?

Before we get further into how the provable system works for bitcoin gambling, let us first understand what provably fair is. Provably Fair is the algorithm that can be analyzed to confirm the transparency and truthfulness of the casino’s operators.

This system has been popularly used in online casinos, online raffle, and giveaways. With this technology, players are guaranteed honesty and fairness for each bet. It ensures that no game is rigged to bleed them out whether it is in cash or cryptocurrency.

Provably Fair’s system makes sure that everything is fair and there’s no need for third-party auditing.  Bet results are predetermined mathematically; thus, making the system more trustworthy. However, it can be vulnerable to hacker attacks especially if there are flaws in the open-source software used.

 Are Online Bitcoin Casinos Provably Fair?

Legitimate multi-currency online casinos like Oshi casino have a provably fair system on their website for cash and Bitcoin gambling games. This ensures customer confidence in each transaction. Usually, the Provably Fair System has 3 major components:

Server Seed

The Server Seed is the seed controlled by the Bitcoin online casino. It is generated by showing the public hash of the seed – this is a set of characters that can be publicly shown without exposing the private key. The Server Seed will be consistent with every generated event.

User Seed

On the other hand, the user seed is the seed that players can control, use, or manipulate during the bet.

Nonce

The nonce is the term that indicates what bet number is taking place in a whole string of bets.

 How Does the Gambling Provably Work?

In the provably fair system, the Server Seed and User Seed for each bet are combined to create 1 Nonce and so forth. This goes on until the User Seed and Server Seed are changed.  When a gambler chooses their User Seed, it shows that the combination is fair since the casino doesn’t know what User Seed will be picked.

Another reason to trust the provably fair system is that when a new Server Seed is released the private key to the previous one is released. The private key will show the bets in the Nonce within the betting string. The private keys are only released by the house until a Server Seed and User Seed pairing is made again.

Some players are contented with their current Seed Pair (combination of Server Seed and User Seed) while some like to change it eventually and regularly. It can be because of superstitions or the feeling that another Seed Pair might be luckier.

Single outcome gambling games like roulette or dice have a simple provably fair process because it has simple rules. Remember that provably fair is harder to implement in more complicated gambling games like poker.

 

Choose the Right Online Casino

Sadly, not all online casinos that claim to be provably fair are telling the truth. You should only check major online casinos like the one that can be found on Bitcoinbuster.com. Being on shady websites can expose your funds and privacy and you are most likely to encounter fraudsters who will take advantage of you.  Here are some things to check when playing in an online bitcoin casino:

High-Quality Security Features

Check for high-level security features like multiple keyholders to access your wallet

Transparency is key

There are some sites that list every bet complete with username, bet details, and time stamps.

Check for Game Source Codes

Another way to show transparency is if the casino publishes their game source codes to be verified.

Check for Enhanced Features

Before signing up with an online casino, always check for enhanced features like performing automatic hotkeys like hitting in blackjack or coin selecting algorithms.

 

Conclusion

Provably fair is a breakthrough in online gaming especially with the use of cryptocurrencies. Sadly, it is not yet mandatory for all online casinos. Using Bitcoin can be a convenient way to play but also risky since it is deregulated. Always transact with high credibility and legitimate online casinos to enjoy gambling.

Mark Robinson is a 39-year-old casino lover from Stamford Hill, inner London. He grew up supporting Chelsea Football Club, the dominant club in his neighborhood. He studied at the prestigious University of Kent and graduated with honors from the Department of Criminal Law. However, he always felt he could be somewhere else, in another field, in a world where Alice could go to Wonderland, and the Americans could play Roulette.

Author: Mark Robinson