Provable fairness refers to a technology used by blockchain casinos and gambling sites to verify the outcome of their games.
This technology lets the players themselves confirm there was no bet manipulation after it was placed.
Do note that not all casinos accepting cryptocurrencies offer provably fair games. Although these games require blockchain technology to function – and are, therefore, absent from traditional casinos – blockchain casinos do also provide non-provably fair games.
The basis of the system is the cryptographic hash function, which is nearly impossible to crack.
- Before the bet begins, the gambling server generates a seed and sends it as a hashed function to the player.
- Client-side, the player then generates a random seed, which is added to the hash function.
- After the bet is complete, the player decrypts the hash function to determine that it is the same transaction.
If the function matches the seed, the bet has been uninterrupted.
Any difference in the hash indicates that something has gone wrong with the outcome, most likely as a result of manipulation.
The main advantage of provably fair games is that it eliminates the need for third-party verification of the outcome of the bets.
It is, therefore, a much more transparent process.