A Primer on Bitcoin’s Provable Fairness System, and What To Do As A Gambler

The use of Bitcoin in gambling has become very popular among gamblers new and old. Provably Fair is the Bitcoin system that aims to ensure that both the player and casino would not be able to cheat and have unfair advantage over the other. Cheating has always been a problem in the industry, and a lot of gamers would say that many traditional online and brick-and-mortar gambling establishments have never been able to set up a Provable Fairness system. Most conventional casinos claim that they offer provably fair results. Realistically speaking, they only probably have provable results though. The main difference is that casinos usually know the outcomes, or in a position to dictate, while the players are oblivious of it. Casinos can actually cheat if they like and provide losing outcomes.This system is just one of many ways that Bitcoin casinos changed how people use the Internet. Finding the right casinos has been made easier with bitcoin casino reviews. Bitcoin casino reviews can be found all throughout the Internet. Some bitcoin casino reviews are biased but others include honest input.

Understanding The Provably Fair System

Provably Fair works by using cryptographic hash functions. This turns data into a string known as a hash, which has properties that make it difficult for certain data to be obtained and decoded.It is close to impossible to decode the hashes even with today’s technology.You only need to take a look at the current standing of the Bitcoin network.While there have been instances of security failures, the cryptographic network itself has not collapsed and the likelihood of it happening is pretty low.

How It Works

The complexity of the encryption, which results to the difficulty of cracking it, is why Cryptographic hash functions are well-suited for gambling using Bitcoin.With this system in place, players are assured that casinos did not change their seed for a particular play. Provable Fair works this way. Before a play even begins, the server generates the seed, which is then sent to the player as a hashed function. Then, from the player’s side (client-side), a random seed is generated and added to what was generated earlier by the server. After the bet is finalized, the player can decrypt the hash function, and from there, he can see whether what is going to occur is based on the transaction that has begun. If there is a difference in the hash, it means that there may have been manipulation or a glitch.

A single formula or even an algorithm does not exist. For example: every game of blackjack would be calculated differently.

Additionally, Bitcoin casino gambling sites may have their own ways in coming up with various outcomes for gamblers to look forward to whenever they place their bets.

Loopholes

Theoretically speaking however, the software of a Bitcoin casino can disconnect if a player is about to win a bet. They can tell the players that they lost connection and refuse to pay them. However, this can catch up to a community quickly and stop playing altogether. As a casino operator, you wouldn’t want that.

Another problem is that a rogue casino will not allow a player to withdraw. This gives them the opportunity to steal the players’ money. Winning a game without being able to claim your prize is never a worthwhile experience at all.

What You Should Do

You should always look for a Bitcoin casino’s provable fairness explanation. They must also be able to provide a calculation of their results that you can check. Some have features which can be used in verifying after-game results. Make sure the data that you are viewing is not manipulated in any way whatsoever and that they are calculated locally. Record your client speed, server hash, and roll outcomes. If you do that, once rouge casinos attempt manipulating data while a game is on-going, you would know what’s going on.

Author: Doug Rutkowski

This entry was posted in Bitcoin.