Blog Casino

What Does "Provably" and "Provably Fair" Mean for Online Casinos?

News Content

If you’ve never heard of the term ‘provably fair,’ you’re not alone. But the term is of great benefit to know, especially if you like to gamble online. Provably fair is a concept that goes hand-in-hand with online cryptocurrency gambling.

Globally, over 26% of the adult population gambles. Of that, only about  3% of the 26% gamble  online. Those that don’t gamble online often attribute it to uncertainty in the fairness of the games at online casinos. While systems exist to prove the games are fair, these systems still rely on third parties which can potentially be manipulated.

With the invention of cryptocurrencies, gambling online because significantly cheaper and this is thanks, primarily, to being provably fair .

Here, we’ve broken down what provably means and what provably fair means for online gambling and casinos.

What Does Provably Mean?

In the case of online gambling, provably means the odds and outcome of a bet can be proven, through code and blockchain transactions, to have not been manipulated. Being provable is a new concept for online gambling and is only possible because of the invention of blockchain technology (the same technology that powers Bitcoin ).

Provably Fair and What it Means for Online Casinos

In provably fair gaming, online gaming casinos can’t manipulate the Blockchain and, therefore, can’t manipulate the outcome or odds of online games. Cryptocurrency online gaming casinos have their transactions recorded on a public ledger which means the public can see all transactions and payouts.

The basis of being provably fair is that, by using code to verify transactions and not humans, online casinos can be made safer, more transparent, and more trustworthy.

For casinos, being provably fair prevents manipulation through the technical process of using an encrypted server key. The encrypted server key ensures the player can’t calculate the outcome. The outcome also can’t be changed by the server after the bet is placed.

In theory, what all that means for online casinos is the provable fair algorithm provides complete transparency. It also provides a verifiable predetermined outcome that can’t be influenced by the house.

The Provable Fair Algorithm (The Technical Definition)

The technical definition of provably fair is when a gambling site uses a cryptographic algorithm in a predetermine randomness that cannot be manipulated. The technical process uses the personal key or seed of the client and a server seed, which is a key owned by the host or casino. Together these seeds create a random result when both parties are participating.

The provable fair algorithm makes all the difference in online gambling. The algorithm behind an online game is provably fair if every participant has the same influence on its in-game randomization. The in-game randomization also has to be verifiable.

The online game is given a commitment scheme that is based on a secure hash algorithm, which is infeasible to break.

An Example of Provably Fair Gambling

The concept of provably can be confusing to some so let’s break it down in the form on an example using a sample game of Blackjack:

  1. The online casino “Shuffles” the deck of cards. The casino provides the player with the hash (encryption) of the shuffle outcome.

  2. The play provides his or her own seed which alters the deck in some way. How the deck was altered is unknown to the casino.

  3. A card is dealt and the bet takes place resulting in a win or lose for the player.

  4. The deck is shown both as it was originally shuffled by the casino and as it was altered by the player. This makes it possible to prove neither party was able to manipulate the outcome of the bet.

The Integrity of the Gaming Site

The  integrity of the server seed  or gambling site is verified by the players with a public algorithm. Every participant sees this algorithm of the game. It is essential to know that not all Bitcoin Casinos have provably fair gaming, so you should always find out if provably fair technology is being used at your favorite online gaming casino. It’s the blockchain technology that gives online casino games the level of transparency it needs for  provably fairness and immutability .

You can always ask an online cryptocurrency casino for their publishing source code, so it’s in open access for you to review and consider. That way, you can have the verification tool you need that allows you to feel comfortable with your participation in a gaming website lottery or casino draw.

What Being Provably Fair Prevents (and What it Doesn’t)

A lot of emphasis has been placed on what using a provably fair casino prevents but its also important to understand what it doesn’t prevent.

Provably fair casinos can’t influence the outcome of games. If your casino uses this type of algorithm it removes one huge point of failure many online casinos can’t address.

What it doesn’t prevent, however, is withdrawal limitations. A withdrawal limitation is when a cryptocurrency casino puts restrictions on how or when you can withdraw your funds.

This is, unfortunately, a relatively common problem with smaller, obscure Bitcoin casinos.

To avoid issues with withdrawal limits its important to use reputable casinos like Stake.com .

Online Gambling

The world of online gambling continues to grow and develop internationally. Almost all countries have some form of gambling through online lotteries or casinos draw. In provably fair gaming, you have verifiable outcomes of games in real-time.

This verifiable outcome in real-time is done in three ways:

  • Hashing

  • Seed Generators

  • Random Number Generators

Legacy or regular online gambling website dress up their games with fancy graphics and sound effects. Rules are listed with a chart that shows their gambling payout. You usually start by downloading the casino’s specific gaming software.

Online legacy casinos use a random number generator they say helps ensure the games are fair. There are some testing evaluations you can ask for if you want to find out if your online legacy gambling site really uses unhacked random number generators for their games.

Fair Gambling

There are ways you can find out if fair gambling is being provided through your favorite online gaming website. A normal or legacy gambling casino that doesn’t use provably fair technology processes should have a system in place that performs the below services:

  • Game and mathematic evaluation and assessment

  • Lottery and pari-mutual system evaluations

  • Audits on poker game systems

  • Random number generator (RNG) evaluations

  • RNG payout verification

  • Full security audits that perform penetration testing

The online or legacy gaming casino will also have a certificate that lets players know they offer fair and random verified games. These audits and certificates are just some of the ways you can ensure outside variables don’t influence the games. You can also ask and receive reports on if your online gaming casino meets the minimum payout percentage established by their local or federal gaming commission.

Provably and Fair Online Gambling

Fair online gambling with Bitcoin can be exciting, rewarding and you can earn lucrative winnings. But finding a provably fair gaming casino online is needed for any of that to happen.

Stake.com is incredibly proud of being one of the world’s most recognized provably fair online casinos.

Learn more about exactly how Stake.com ensures transactions are 100% provably fair and verifiable.

In the words of one forum user:

Being provably fair in combination with the extremely low house edge is what makes Stake, Stake. Asscorn

Start betting on Stake.com