How crypto casinos are using Provably Fair to change the iGaming industry
$6,000 Welcome Bonus
Since the first launch of cryptocurrency in 2009, a lot of industries have been transformed by the adoption of digital currency. iGaming is no exception to this transformation and because of this, it has proved to be an ardent competitor of traditional gambling sites. The major difference between crypto casinos and traditional online casinos is that the former has adopted provably fair technology which gives them a competitive edge. Provably fair, which uses blockchain technology, encourages fairness and accountability from the digital casino operator, which builds a certain level of trust with players.
The transparency involved is what makes iGaming more popular than traditional online gambling platforms. This documentation seeks to bring to light how crypto casinos are using provably fair to change the iGaming industry for the better with the ultimate goal of providing players all over with an improved gaming experience.
iGaming at A Glance
iGaming is any form of internet betting that places bets on how an event or game will turn out in the future. Since iGaming is a vast industry, it has been broken down into two broad categories for clarification – sportsbooks and online casinos. Sportsbooks are mainly concerned with accepting wagers on sporting events and online casinos offer players games of chance, slots, and a variety of table and card games. Mega Dice is one such iGaming site that offers both sportsbooks and online crypto casinos. Although it only accepts cryptocurrency payments, it has in place a system that allows players to conveniently convert fiat currency to crypto.
It is fast becoming a favorite among gambling enthusiasts, although it was only established in 2023. Some of the reasons for its popularity are that it uses provably fair technology and promotes data privacy which enables anonymous gambling. Mega Dice boasts a host of virtual games that include plinko, keno, baccarat, poker, roulette, and blackjack, to name but a few. Perhaps the biggest attraction of the platform is how gamers have an option of betting on over five thousand slots with crypto, covering various themes.
As much as iGaming might be gamers’ choice of the moment, it is not without its fair share of challenges. Strict regulations and stiff competition stand out as the two most plaguing ones. Operators in the industry are constantly kept on their toes trying to protect the future of their platforms.
Provably Fair Explained
Online gambling has always been plagued by fairness and transparency issues, and the introduction of provably fair resolves these unending worries of trust and fairness in the iGaming sector.
Origin
The foundation of blockchain technology, which powers cryptocurrencies, is where provably fair technology is rooted. Every part of a game, including things like deck shuffling and result determination, is transparent and verifiable thanks to cryptographic algorithms. Cryptography allows players to check in real-time if game results are fair. This system, which was first introduced to gamers by Bitcoin casinos, uses blockchain technology and encryption, to make sure that online casino game results are absolutely random and cannot be altered in any way.
How it Works
The fairness and transparency of provably fair games rely on cryptographic hash functions. For it to function properly, there are three things included in the process: a randomly generated seed, a player-provided seed, and a seed from the casino. The seeds are then grouped and hashed, and the generated encrypted output is given to the player before the beginning of the game. The original seeds are disclosed either during or after the game, based on how it was implemented. After they are revealed, players can use both the hashed result and the seeds to confirm the fairness of the game. This reassures players of the transparency of the game.
How Provably Fair Technology Brings About Positive Changes
Provably fair systems promote transparency which gives them the power to change the way online gambling transactions are conducted. Besides transparency, they have many other tangible benefits that they offer the iGaming industry. For a better understanding of these benefits, here is how crypto casinos are using provably fair to bring about positive changes:
Transparency
The proprietary algorithms and centralized servers that are used by traditional online casinos leave players with no way to verify the fairness of game results. With provably fair technology, players can check on their own to see if the outcome was not manipulated. The fairness and randomness of each outcome can be easily verified.
Unbiased Randomness
To produce random numbers, which are necessary for it to be called fair gambling, crypto casinos use hash functions and cryptographic algorithms. Players can confirm that the results are completely random and have not been manipulated by the online operator or any other external party by using open-source cryptographic methods.
Public Ledger
Since provably fair runs on blockchain technology, every action can be seen and verified, and cannot be changed as all transactions and game results are recorded on a public ledger. Because players can access transaction history and confirm previous game outcomes at any given time, their faith in the casino’s management increases. Crypto casinos provide a degree of confidence that is higher than what traditional casinos can, by making use of the decentralized and set attributes of blockchain technology.
Player Empowerment
Provably fair technology has given the power back to the players by making it possible for them to analyze every cryptographic hash and algorithm, to check whether the outcomes of the game are really fair and random in real-time. Having some form of control over their gameplay encourages players to trust online casino gambling operators more and would not make them hesitate to invest in their gaming activities. Gaming integrity is what players are more concerned about.
Elimination of Cheating
The main objective of starting any business is to make money. Providing a service is secondary to making profits and therefore some unethical online gambling operators might employ unscrupulous means to wean every dollar they can from unsuspecting players. Provably fair removes this loophole for cheating by making every transaction verifiable. Game results cannot be changed and neither can the algorithm be manipulated. Players can see if there was any attempt to tamper with results, which will lead to damage to the operator’s reputation.
Regulatory Compliance
Online gambling regulations require operators to deliver a service that is transparent and fair. By using provably fair systems, crypto casinos prove their willingness to comply with regulatory requirements as they have to operate within the stipulated rules and guidelines.
Eliminating Third-Party Interference
Provably fair has shifted the burden of conducting audits from third parties to the players. There is no longer any need for third-party interference since players can personally audit their game outcomes. This kind of empowerment brings about a positive shift in the iGaming industry, something that some traditional online casinos are still struggling to fulfill. Players are more likely to engage positively when they know that games are played fairly, which helps the cryptocurrency casino market to expand.
Challenges
Although provably fair is hailed in the online gambling world for the benefits it has brought to the iGaming industry, like any other technology, it is not without its weaknesses. Addressing these challenges requires the combined effort of the iGaming industry, regulators, and technology providers. Below are the challenges that are associated with it and the possible solutions that can be implemented.
Implementation Cariations
There are different possible implementation strategies that can be used by online casino platforms which leads to a variation in verification processes. Because of this, players should therefore first understand the type of verification process used by each gambling platform before starting their betting activities.
Implementation Consistency
The online gaming platform should ensure that the implemented provably fair algorithms are the same and without errors across all games. The system should undergo vigorous testing and there should be quality control measures in place to maintain uniform implementation throughout all games to reduce the risk of errors or vulnerabilities.
Complexity for Users
Some users may find the verification processes a bit complex or unnecessary, which will make them shy away from making use of the provably fair features. To overcome this hurdle, the verification process should be simplified and a user-friendly interface should be provided to make navigation more manageable and to also attract many potential users. Players should also be educated on the importance of the verification process to fully understand the benefits of the systems at their fingertips.
Scalability
As more and more people opt for provably fair systems, online transactions also increase which raises concern over the system’s ability to adapt to the growing numbers. This issue can only be solved by continuously developing blockchain technology.
Variability in Cryptocurrencies
There are numerous cryptocurrencies in use today and every one of them might have varying levels of support for provably fair attributes. Regulating applications across the most common cryptocurrencies and promoting their use can help alleviate this issue.
Regulatory Acceptance
Since these technologies are developing and improving each day, it is not surprising that some regulatory bodies still haven’t yet grasped the concepts attached to them. This therefore means that some regions may still fall short of the necessary legal structure for provably fair gaming, presenting challenges for both casinos and players. As providers of entertainment in a very large market, casino operators face the challenge of meeting the regulatory guidelines of different jurisdictions at the same time, and coming up with universal standards that are approved all over might not be possible. It is up to the casino owners to establish guidelines and standards from the regulatory bodies to get their systems accepted and approved.
Lack of Trust
Online sports betting and casino gaming have a reputation for being unfair and lacking transparency. Gambling platforms are notorious for manipulating game outcomes to rake in profits at the expense of players, meaning that provably fair systems have to build player trust from a point where minimum trust exists in the industry except for those platforms that are heavily regulated. Trust building takes time but delivering on the promises of provably fair technology will make it easier for gambling operators to prove their sincerity.
Player Adoption
Besides the need to overcome the complexity of the system, some players may also prefer to stay in their comfort zone, and may not want to explore new technologies despite the benefits on offer. It is up to the gaming operators to show the undisputable benefits to players in a way that they understand enough to make them want to embrace the new technology.
Keeping Up with Innovation
Technology launch does not end with implementation. Regular maintenance and updates are a necessary headache that must be overcome. Provably fair systems need to be kept updated and compatible with the systems and platforms they run on.
The Future of Provably Fair
Provably fair future looks promising with the hope of future developments continuously ensuring transparency in online gambling. Here is what the future may hold:
Widespread Adoption
In time, the adoption of provably fair systems is likely to become more widespread across various online gambling platforms, as players become more familiar with blockchain technology and its benefits.
Standardization
If it becomes accepted worldwide, provably fair might end up becoming the standardized norm for online gambling and implemented across different casinos and games.
Integration with Traditional Platforms
After seeing the notable benefits, traditional online casinos may start merging provably fair features with their traditional ones, bridging the gap between normal and crypto-based gambling.
Blockchain Technology Development
The adoption of advancements in blockchain technology, such as improved scalability and interoperability, will contribute to the enhanced performance and seamless integration of provably fair systems.
Regulatory Recognition and Acceptance
The provably fair technology might grow in such a way that regulatory authorities may start to see its potential and recognize it for the benefits it gives players and decide to incorporate its standards into their frameworks.
Introduction of New Ideas
Cross-Platform Compatibility
Players may see increased cross-platform compatibility, allowing them to verify game outcomes easily from various devices and platforms.
