The advent of blockchain technology and smart contracts has enabled a revolutionary new standard for fairness in online casinos through verifiable random number generation. Unlike traditional online casinos, blockchain-based gaming platforms can cryptographically prove that gameplay is truly random and not manipulated behind the scenes to favor the house.
Need For Provable Fairness
Since the inception of online casinos in the 1990s, players have harbored suspicions about whether gameplay is truly fair and random. Unlike physical casinos where players can directly observe mechanical randomness from rolling dice or spinning roulette wheels, internet gaming requires players to trust that casinos accurately report game outcomes from their private servers. Several major cheating scandals in the 2000s confirmed players’ fears that casinos could tweak algorithms and fix bets without anyone knowing. This eroded player trust and cast doubt on the legitimacy of PlayAmo casino australia real pokies and the entire online gambling model.
How Blockchain Brings Verifiable Randomness
Blockchain casinos have introduced a groundbreaking solution to this problem—enabling players to independently verify random game outcomes on the blockchain. Here’s how it works:
Provably Fair Blockchain Casino Game Workflow
| Step | Description |
| 1. Player requests gamble | Player sends a request to the casino blockchain to initiate a gamble. This creates a new blockchain transaction. |
| 2. Casino generates random number | The casino creates a seed for the player’s gamble by taking the player’s unique gamble request transaction ID and sending it through a random number generator. |
| 3. Casino commits hash to blockchain | The casino takes the random number output and hashes it into an irreversible alphanumeric string. This hash is recorded immutably on the blockchain under the player’s transaction. |
| 4. Player plays game | The player plays their game while the casino keeps the random number concealed. |
| 5. Casino reveals random number | After gameplay concludes, the casino reveals the original random number seed to the player. |
| 6. Player verifies outcome | The player takes the revealed random number and replays it through the game algorithm to verify the accuracy of the reported game outcome. |
As long as the casino creates randomness appropriately on the backend, players can prove that gameplay is fair by verifying game outcomes match the random seeds. No cheating is possible because records on the public blockchain are permanent and auditable.
Advancements In Blockchain Randomness
The simplest method for introducing randomness into blockchain systems is to take the hash of the preceding block as a random seed. However this approach allows miners to manipulate results by modifying block hashes. To prevent this, many blockchain casinos implement more advanced solutions:
- RANDAO – RANDAO is a smart contract that allows players to collectively generate randomness through commitments. The contract compiles random numbers submitted in secret by various players to create output that is provably random.
- Verifiable Delay Functions – These special cryptographic functions force miners to complete sequential operations that take a set amount of time before they can submit a block. This timeframe makes manipulating outputs practically impossible.
- Distributed Random Beacon – Some blockchain networks run specialized beacon nodes that frequently emit random outputs. Beacon outputs can seed games to ensure constant availability of recent verified randomness.
Multi-Billion Dollar Trust Opportunity
By enabling players to definitively authenticate the randomness underlying games, blockchain technology can rebuild broken trust between online casinos and players. Provably fair blockchain gaming holds the potential to unlock billions in revenue from new users who previously avoided online casinos due to transparency concerns.
In fact, the blockchain gaming industry is projected to grow over 20x from $3 billion in 2020 to $70 billion by 2028. As blockchain technology disseminates across the industry, expect provably fair casinos to become the decisive new gold standard that players demand. The era of verifiable, trustless online gaming has only just begun.
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