Provably Fair Gambling Explained With Details & Examples

The emergence of Bitcoin and blockchain in the late 2000s revolutionised not only finance but also the iGaming industry. Faced with constant player concerns about rigged games, online casinos sought a solution. Blockchain's transparent and verifiable nature offered a breakthrough, leading to the development of the so-called Provably Fair gambling. This system empowers players to verify game outcomes, ensuring trust and fairness in the online gambling world.

What Exactly is Provably Fair?

In short, Provably Fair is a technology designed to instil trust between online gaming platforms and their players. At its core, it's a system that empowers players to independently verify the fairness and integrity of each game round.

Gone are the days of relying solely on the operator's word. With Provably Fair, every game outcome is backed by cryptographic algorithms, providing players with concrete evidence that the game was played fairly and without manipulation.

By employing advanced cryptographic techniques, Provably Fair ensures that:

Every game round is independently verifiable: Players can scrutinise the game's mechanics and outcomes using the provided data.
Randomness is guaranteed: The system relies on cryptographic hashes and random number generators to determine results, eliminating any potential bias.
Transparency is paramount: All relevant data is accessible to players, allowing for complete oversight of the gaming process.

Is Provably Fair The Same as RNG?

Not quite. Both play crucial roles in ensuring fairness and unpredictability in game outcomes, but they operate in distinctly different ways.

Random Number Generators (RNG) are the classic method for creating randomness in games. They utilise complex algorithms to produce results that are unpredictable and seemingly random. These algorithms are designed to be a closed system, meaning that players cannot see the inner workings and must trust that the game is fair. This trust is built by game providers through rigorous testing and certification of their RNG setups, ensuring they meet industry standards for fairness and reliability.

Provably Fair (PF) systems, on the other hand, bring transparency to the forefront. While they also use randomness, they add a crucial layer of verifiability. In a Provably Fair system, every game outcome is accompanied by a “receipt” that details how the result was calculated. This allows players to independently verify the fairness of each outcome, fostering a greater sense of trust and transparency.

How Provably Fair Works

Using complex math and cryptography, Provably Fair guarantees that game outcomes are determined before players bet, preventing manipulation. This is achieved through a combination of random numbers generated by both the casino and the player, along with a unique identifier for each game, called variables.

The 3 Key Variables

Player Seed: Before you start playing, you generate a unique number called the ‘player seed’. You can either choose this number yourself or let the game generate it for you.
Server Seed: The game server creates another unique number called the ‘server seed’. This number is kept hidden from you to prevent any cheating.
Nonce: This is a number that starts from 0 or 1 and increases with every bet you place. It ensures that each game round is unique.

How It All Comes Together

At the start of each game, the server generates a random seed using a secure method. This is the ‘server seed’. The server seed is then turned into a string of characters using a process called hashing. This hashed seed is shared with you before the game starts. It’s like sealing the outcome of the game in an envelope and giving you the envelope.

When you play, your player seed is combined with the server seed. This combination, along with the nonce, determines the outcome of the game. This process uses complex algorithms to ensure the results are random and can’t be tampered with.

After the game, the server reveals the original server seed. You can then check this seed against the hashed version you received earlier to make sure they match. If they do, you know the game was fair.

A Step-by-Step Example

Imagine you’re playing a game of online roulette. The casino generates a unique server seed that may look like this:

RmLFopQ4VBuKZiFq

and hashes it. You receive this hashed seed before you place your bet.

You also generate a player seed. When you place your bet, the game combines your player seed with the server seed and the nonce to determine the result. The wheel spins, and the result is shown. After the game, the casino reveals the original server seed. You can use this to check the hashed seed you received at the start. If they match, the game was fair.

How Provably Fair is Used in Various Online Games

It was originally designed for games where players bet against the house, but has since expanded to include player-versus-player (PvP) games and other multiplayer formats.

To be considered Provably Fair, a game must follow these core principles:

Randomness: Game results must be determined by a truly random process, such as hashing or using open-source random number generators.
Immutability: The outcome of a game must be fixed before it's revealed to both the player and the game operator.
Player Involvement: Either the player or an independent third party should participate in generating the final result.

Example In Crash Games - ROCKIT! and BOOM!

ROCKIT! and BOOM! are both new crash games developed by Gamingtec's GT Studios. These Provably Fair games involve players betting on an increasing multiplier and cashing out before the multiplier crashes. The excitement and strategy lie in predicting when to cash out to maximise winnings. Both games employ PF to ensure transparency and fairness.

How The Provably Fair Mechanism Works in ROCKIT!:

Generation of Server Seed and Client Seed:

Server Seed: Before the round begins, ROCKIT!'s server generates a random seed called the server seed. This seed is hashed using a cryptographic hash function (such as SHA-256), and the resulting hash is shown to the player. The original server seed is kept secret until the round ends.
Client Seed: Players can provide their own seed, known as the client seed, or use a default one provided by the game.

Combination of Seeds and Nonce:

Nonce: A nonce, which starts at 0 and increments with each round, is used in conjunction with the server and client seeds to ensure uniqueness for each round.
The server combines the server seed, client seed, and nonce to create a combined seed.

Generating the Crash Point:

The combined seed is hashed using a cryptographic hash function.
The resulting hash is converted into a numerical value that determines the crash point. This value is typically mapped to a multiplier range, for example, from 1.00x to infinity.
This numerical value represents the point at which the multiplier will crash.

Verification Process:

After the round concludes, the player can verify the fairness of the crash point using these steps:

The original server seed is revealed to the player.
Using the disclosed server seed, the client seed, and the nonce, the player can re-create the combined seed and hash it.
The player compares the hash of the combined seed with the hash provided before the round. If they match, it confirms that the crash point was not altered after the bet was placed.

The Verification Process:

Before Round:

Server Seed (hashed): 9f8e7d6c5b4a3c2d1e0f1a2b3c4d5e6f
Client Seed: player456
Nonce: 0

After Round:

Server Seed (original): 5b4a3c2d1e0f1a2b3c4d5e6f9f8e7d6c
Client Seed: player456
Nonce: 0
Combined Seed: 5b4a3c2d1e0f1a2b3c4d5e6f9f8e7d6cplayer4560
Hash of Combined Seed: 9f8e7d6c5b4a3c2d1e0f1a2b3c4d5e6f

Verification:

The player hashes the combined seed (5b4a3c2d1e0f1a2b3c4d5e6f9f8e7d6cplayer4560) and checks if it matches the provided hash (9f8e7d6c5b4a3c2d1e0f1a2b3c4d5e6f).
If they match, the crash point is confirmed to be fair.

Example In Dice Games - Primedice

Primedice is a widely recognized online dice game that utilises Provably Fair technology to guarantee the fairness of each roll.

How The Provably Fair Mechanism Works in Primedice:

Server Seed and Client Seed:

Server Seed: Generated by the server and hashed using SHA-256, with the hash provided to the player before betting.
Client Seed: Players can set their own seed or use a default one provided by the game.

Combination and Roll Outcome:

Nonce: Starts at 0 and increments with each roll, ensuring uniqueness.
The server combines the server seed, client seed, and nonce, then hashes the combined seed to produce a random number.
This number is converted into a dice roll outcome, typically ranging from 0 to 99.99.

Verification:

After the roll, the original server seed is revealed.
Players can re-create the combined seed using the server seed, client seed, and nonce, then hash it to verify the result matches the pre-roll hash.

The Application of Provably Fair in iGaming Platforms

iGaming platforms are the technological backbone of online casinos and sportsbooks. They are what runs in the background, holding together the places people go to bet and play in. Gamingtec offers its own online casino software called GT Casino. But the use of the Provably Fair technology doesn’t necessarily apply to the platforms themselves. Rather, it’s the gamification inherent to the platform that fosters Provably Fair.

So much so that it has, at present, become a widely adopted standard. In fact, when selecting an iGaming platform, brand owners are encouraged to seek out Provably Fair altogether. In any case, it does find limited application:

Online Casinos

Slot Machines: While it's challenging to apply Provably Fair to every aspect of slot machines due to their complex mechanics, some platforms offer provably fair slots with simpler structures.
Table Games: Games like blackjack, poker, and roulette are well-suited for Provably Fair. The platform can provide the necessary data for players to verify each hand or spin.
Dice Games: Provably Fair is widely used in dice games due to their simple mechanics. Players can easily verify the outcome based on the provided data.

Crypto Casinos

Crypto casinos are more likely to adopt Provably Fair due to the inherent focus on transparency and decentralisation in the cryptocurrency space. They also often offer a wider range of Provably Fair games compared to traditional online casinos.

Some crypto casinos even leverage blockchain technology to store game data immutably.

Online Sportsbooks (Bookmakers)

Provably Fair is less common in sports betting compared to casino games. This is because sports outcomes are influenced by real-world events and not solely determined by random number generation.

Some platforms might use Provably Fair for specific in-play betting markets or for random number-based promotions.

Can Provably Fair Be Hacked?

A common concern with Provably Fair is whether it can be hacked. The short answer: it’s highly unlikely. Here’s why:

The server seed, a critical component in the Provably Fair algorithm, is protected by advanced hashing techniques that convert it into a unique set of characters. This process ensures that even if the hash is intercepted, reverse-engineering it to discover the original server seed is nearly impossible. Cracking SHA-256 encryption is so complex that only a future quantum computer might achieve it—something still decades away.

Similarly, the player seed, chosen or generated by the player, is also securely handled. Provably Fair casinos enforce strict data protection measures to safeguard player data, preventing third parties, including hackers, from accessing or manipulating the player’s seed.

In summary, the security and the nature of both server and player seeds makes them extremely resistant to hacking attempts.

What The Future Will Be Like For Provably Fair

The future of Provably Fair technology within the iGaming industry is on an upward trajectory. As we look ahead, we can expect a growing acceptance of Provably Fair among both players and industry stakeholders. This increased awareness will undoubtedly foster trust in iGaming platforms.

All the while, the technological landscape is evolving, with Provably Fair poised to become integrated with emerging innovations such as Web3. The symbiotic relationship between Provably Fair and cryptocurrencies is anticipated to flourish, further solidifying the security and transparency inherent in Provably Fair systems.

As the industry expands globally, we foresee a corresponding growth in regulatory frameworks that acknowledge the importance of Provably Fair. Looking ahead, strategic partnerships and collaborations will be instrumental in propelling Provably Fair technology forward, ensuring its compatibility across various platforms.