The advantages of blockchain and smart contracts have already gone beyond fintech, and they are being used in other industries. Key features of the blockchain are interesting for gambling companies as well. What does this technology give, and what problems can it solve? Let’s see:
- Security and fair play guarantees. The technology allows you to anonymously record user actions and game results, while the data cannot be faked or altered in any way.
- Providing anonymous access to gambling resources. A blockchain-based crypto casino guarantees players that personal information about them will not be shared.
- Transaction speed. Clients of resources on the blockchain can withdraw and deposit funds to the account without waiting for several days.
- Low fees. Most blockchain casinos have the lowest deposit and withdrawal fees in the industry.
Such advantages make the casino more attractive to customers, and the operation of the platform – fast and maximally protected from possible outside interference and fraud. Blockchain can solve gambling problems such as lack of transparency, speed of payments, and high barriers to entry for new players.
What is a blockchain casino?
A blockchain casino or crypto casino is a gambling platform that is implemented using decentralized technologies. On such a resource, a definite control of all financial transactions is carried out, including deposit and withdrawal of funds, bets, and winnings. Due to the peculiarity of the blockchain, data cannot be faked. Thus, the players receive guarantees that they will not be deceived.
Gambling resources can use the blockchain in different ways, using them in one way or another. For example, use slots entirely based on technology, or connect the ability to make transactions in cryptocurrency. Any of these options is attractive to customers and can increase the level of trust in online casinos.
Advantages of blockchain in online casinos
Blockchain casinos operate based on smart contracts that guarantee the safety and security of processes. That provides customers with the payment of money in the event of a win. How it works:
- The smart contract is written according to the principle “if, then…” and is executed automatically;
- The conditions under which you can receive a prize are transparent and publicly available;
- In the case of winning, the user receives a certain amount to the wallet automatically and without delay.
Another significant advantage is that payments are made directly without the involvement of intermediaries. Thus, all transactions are characterized by high speed and minimum commission.
The essential plus of a decentralized system is obvious: the data is stored on multiple devices at the same time and cannot be rewritten, which gives customers a guarantee of fair play, since all information is publicly available and players can freely check it (for example, calculate whether the casino pays out the promised percentage of winnings).
What is Provably Fair technology?
Many gamblers do not want to gamble in online casinos, as they are afraid of being fooled. In real halls, the game is fair because the player can follow the actions of the dealer. But when visiting gambling sites remotely, this is not possible.
Previously, players quite rightly doubted that it was possible to win honestly at the casino. But the developers of modern software managed to solve this issue by creating a new Provably Fair technology. Now, it is secure to play at the casino because certified gambling agencies are protected by a specific SSL encryption technology.
Provably Fair principle
An honest win is what visitors to sites with the Provably Fair integrated system can count on.
Imagine you want to play roulette or cards. When you visit the hall personally, you see 100 cards on the table, numbered from 1 to 100. According to the rules of the game, the croupier draws one card from the deck and gives it to you. But how can you be sure that you got it by accident? So that you can believe in a real win, the dealer asks you to put the card back into the deck and shuffle it.
Features of Provably Fair technology:
- When determining a random number, not one side takes part in the game, but both;
- During the generation of numbers, the system receives two ciphers – from the visitor and the casino;
- When connecting the ciphers, the third result is obtained.
The manipulation of results in this algorithm is excluded. The sequence of numbers in the deck is encrypted in the player’s browser. Therefore, the casino has no idea which card the number generator will choose.
An example of Provably Fair roulette
Within the framework of the developed system, a mathematical model of calculation and random rotation of the roulette wheel is used. The colors are listed in the order in which they appear on the wheel. After that, the random number generator (RNG) randomly selects the place where the roulette stops. One of the most reliable RNGs, the Mersenne Twister, is used during the operation.
How is a random number generated, and how is the rotation fingerprint provided?
The technology is called a hash, and it works according to the following principle:
- The system uses a “secret” number required to create a data fingerprint;
- As a result, the scenario of the game is modeled;
- Within the framework of the system, the last rotation is selected not only by the fingerprint, so there is no possibility of data tampering.
The fingerprint is formed by hashing the data using SHA-256, a mathematical algorithm. This imprint corresponds exclusively to a specific rotation of the wheel and a “secret” number.
Provably fair is based on cryptographic hash functions. The data converted to hash strings are verified by a specific algorithm.
Provably fair technology developers offer a choice of several methods of testing technology fairness. The most popular one, which is most often found in gambling rooms, is described below:
- Client Seed – a randomly selected sequence of numbers that is entered by the player;
- Server Seed – a random array of numbers that are generated by the server;
- Nonce – the total number of bets in the sum (Client Seed plus Server Seed).
A casino visitor cannot doubt that the combinations of bets were randomly generated by the system. In this case, the hash is calculated even before the bet. It is a summed metric from:
- Server Seed;
- Client Seed.
The first and last four characters are selected from the result. They are subsequently tossed into the Seed to activate the generator.
Blockchain and related technologies have brought enormous progress into the online casino sphere. Thanks to the tech, a user can solve the issues of trust in online casinos. Smart contracts make it possible to verify and maintain the integrity of the casino with great precision. And crypto payments allow both players and online casinos to save on commissions.