The world of online gambling has been one of the biggest industries since the internet was first introduced in the early 1990’s, casual gamblers and addicts alike can now get a gambling fix easier than ever. Since the inception of online gambling, the main issue has always been the question of whether the games (based on randomly generated numbers) were swayed towards the digital casino or actually had legitimate play involved.
It’s easy to wonder how easy it is for a casino to magically stack a deck of cards that only exist in digital format, the games being programmed and monitored by those who are taking a player’s money – much like an actual casino.
The introduction of decentralized currency, such a Bitcoin, has made it possible for gamblers to remain anonymous as well as given the casino a chance to demonstrate ‘provable fairness’ in the games they offer.
Bitcoin operates as the ideal digital casino chip providing anonymity, immediacy, and essentially permanency. In addition to advantages for the online gaming experience, Bitcoin isn’t regulated or held to any jurisdiction and there’s no third-party processor that has to aggregate casino cash flow. Bitcoin has the added bonus of not leaving any paper trail which could implicate a player in a crime depending on the laws of their country.
Organizations such as eCOGRA (eCommerce and Online Gaming Regulation and Assurance) and APCW) Association of Players, Casinos, and Webmasters) have been popping up to ensure third party auditing, adding another element of fair play in the business.
Sites such as BitZino state that they are verifiable proof is available directly to you as a player. If not for the education issue, this news would stun the established online casinos of Gibraltar and Malta. I cannot imagine a gaming operator that doesn’t adopt Provably Fair systems to remain competitive in the future.
BitZino utilizes a cryptographic function (SHA256 algorithm) to create a method of honesty that resembles a deck of cards that has already been shuffled. There is no way for any one player to crack the algorithm and predict how the deck will be shuffled, the casino can let players look at the hash before the game starts.
Then, the deck is reshuffled by using an alternate algorithm with the numbers generated by a completely different algorithm that was seeded with a hash of the combined server seed and client seed. According to bitZino, “The second round of shuffling only serves to ensure that neither the server nor client could possibly know the final deck before the game starts.” Finally, the initial shuffle and the server seed are provided to the player for verification.re players which increase the practical understanding of ‘provably fair’ systems that don’t require a third-party authority. Larry Taad, owner and lead developer of bitZino, explains in an interview:
“One of the largest hurdles to creating a good provably fair system is explaining to users exactly what it is. When developing our provably fair system at bitZino, we put a lot of effort into making sure we could accurately portray to our users how it all works. Because the larger market doesn’t yet understand Provably Fair systems, it doesn’t yet demand them. So, the big players aren’t likely to implement them. However, if history is any indication, the market will come around. Look at the rate of adoption of HTTPS websites. Users in the 90’s didn’t demand secure websites when shopping, now they absolutely do. When asked about other types of casino games like craps and roulette, Larry said that any single-player game can be made Provably Fair by merely utilizing a source of randomness that is unknown to the house at the time the outcome of the game is determined. For multi-player games, it becomes more complicated because the house could plant a player that has full knowledge of the state of the game.”
The online casino DAO.casino has introduced a protocol in which gambling is demonstrated to be fair and even above reproach. With the variables and outcomes available to the public, there may be no method for a casino to stack the odds in their favor, thus ‘cheating’ a gambler during the games. Players will finally be able to play knowing there’s no foul play going on.
Another factor to keep the business honest is the concept of crowd selling, which creates the opportunity to use cryptocurrency technology to issue tokens which represent equity or shares in the company. Casinos such as the Decentralized Autonomous Organization are interested in having all personnel in the industry involved in revolutionizing and legitimizing the online gaming industry. Using incentives players, providers, and shareholders will be more interested in helping develop the idea and participate.
Even as the term ‘blockchain’ is used more often used than ‘distributed ledger’ in conversation, many types of data can show privity of secure and validated transactions and distribution. However, other forms of distributed ledgers exist such as Ripple, Ethereum, InsureX, and others.
Decentralizing and creating a provably fair casino is a revolutionary step in all aspects of gambling, not just online. Since gambling first began a player has always been at the mercy of those in charge of their game of choice. Often times dealers act as hustlers and use any advantage or misdirection to con someone out of their hard-earned money.
Computer technology and decentralization has turned the entire gambling industry around and is history in the making for those who enjoy games of chance.