How Blockchain Helps Solve the Main Problem of Casinos- Trust in the Fairness of Games

How Blockchain Helps Solve the Main Problem of Casinos

Author of the article: Gerda Grinova

Players are increasingly questioning the transparency and fairness of games in online casinos. This is largely due to the inability of online casinos to show how games are run. 

Despite certifications and claims of RNGs, casinos still struggle to win the trust of their players regarding fair play. Naturally, the house has an edge over the player, but gamblers are doubtful if results occur by chance or if thereโ€™s more to it.

This growing concern is what Blockchain Technology addresses. Thanks to its decentralized framework, it has offered a level of transparency and impartiality that towers over every other form of transparency check.

So how does blockchain ensure fairness? Let’s find out, starting with what Blockchain is all about.

What is Blockchain?

Blockchain technology is a decentralised digital ledger where information is distributed among a network of computers instead of being piled up in a central location. These data are stored in blocks with each block linked to another, forming a secure chain that cannot be altered. 

To put it in simpler terms, Blockchain is like a book containing information. This book is not held by one person but by many. When there is a new addition in the book, everyone gets updates on their copies automatically. This book cannot be edited and so there’s no room for blotting out what has already been written..

About 4% of the world’s population uses Blockchain, with Asia taking the lead. Its usage cuts across all industries, including the gambling industry.

When an online casino implements blockchain technology, it monitors every transaction, ensuring games are unbiased and playersโ€™ bets are secure and open for review.

Why Players Doubt Casino Game Fairness

Skepticism is the most challenging task that casinos, especially online casinos, face from players. Based on research carried out by UK Gambling Commission between 2016 and 2023, only 30% of the respondents agree that gambling is conducted fairly and can be trusted.

Some of the concerns gamblers have include:

  • Casinos have hidden algorithms that give the house an edge higher than they advertise.
  • Lack of transparency of terms of service and payouts
  • Inability to verify game outcomes
  • No way to verify audits and certifications.

Because online casinos cannot provide substantial proof to allay these fears, some players remain suspicious of the system even when they win. This is why casinos often introduce incentives like no deposit bonuses which allow players to try out games without risking their own money. While these bonuses build initial trust, true transparency comes when casinos combine such offers with blockchain-backed systems. Beyond fairness, blockchain enhances the overall player experience. Features such as instant payouts and secure transactions are further complemented by offers like no deposit bonuses, which encourage players to try platforms risk-free. As noted in https://casinocanada.com/casino-bonuses/no-deposit-bonuses/ guide, such incentives foster trust and long-term engagement.

How Blockchain Ensures Fairplay in Online Casino Games

The basis of Blockchain is to keep things transparent between parties involved, be it financial records or any other data that requires accessibility. American Business woman Julie Sweet talks about how Blockchain influences our existence. She said, โ€œBlockchain has the potential to fundamentally change how we share information, buy and sell things, interact with the government, prove our identity, and even verify the authenticity of everything – from the food we eat to the medicine we take to who we say we are.โ€

Rightly so, Blockchain has proven to be useful in all parts of our lives.

In casino gaming, blockchain gives players the control to follow up their gaming activities, from bets to payouts. Here are some ways Blockchain can solve the issue of fairness in games.

1. Public Ledger

Blockchain allows players to have unrestricted access to records of transactions and game outcomes. You no longer have to rely on what the house says. The house edge, gaming mechanics, and payment systems are now visible for all to see. And no matter how old or long the records are, they are always within reach. This means that records of bets you placed years ago cannot be tampered with.

2. Provably Fair Gaming

Provably Fair is a technology created from blockchain that allows players to independently access and verify the authenticity and fairness of a game. This system bridges the gap between online casinos and their players.

Probably Fair uses cryptographic elements that provide evidence of fair play, banishing doubt and removing manipulations. For instance, before you play a game, Provably Fair creates a unique hash of the gameโ€™s outcome. This code/hash cannot be altered, and after the game, you can refer back to it to confirm that the results are true.

How Provably Fair Works

Provably Fair uses 3 key variables to generate unique numbers to determine if a game is fair.

  • The Server Seed is a random number a casino generates to influence the gameโ€™s outcome before you place a bet. The number is not given to you plainly, but will be scrambled, and you are given the encoded version
  • The Player Seed is the random number you generate to influence the gameโ€™s outcome before you place a bet.
  • The Nonce is a number starting from 0 that increases with each game round. It ensures that results are not the same for each round.

The three variables are combined and run through the algorithm to get a final result. After the gameโ€™s outcome is displayed, the server seed is revealed to check if the games are fair.

1. Smart Contracts

Smart contracts are automations that enable online gaming platforms to show their transparency by revealing their payouts, odds, and house edge. These automations are verifiable, which means players can trust the casino to play by the rules and if there would be any changes to the terms of service players are notified.

2. Decentralised RNGs

Random Number Generation is a system used by casinos to generate random results for each round of the game. Software providers embed the RNG algorithm in the game to provide unbiased results. Trustworthy online casinos go through rigorous processes to get RNG certifications. However, certifications alone may not breed trust. The introduction of decentralized RNGs by blockchain allows operators and gamblers to review results independently, thanks to cryptographic hashing.

Benefits of Blockchain to Online Casinos

Blockchain to Online Casinos - List of Benefits

Getting players to trust the fairness of games is not the only work blockchain technology does. There are also additional benefits that improve users’ experience and increase players’ trust as a result of blockchain technology improvement.

  • Secures Playerโ€™s Identity and Funds

Security is one of the things that should never be compromised at any point. Players are wary of sharing private details and sensitive information with online platforms due to fear of fraud and hacking, especially the newbies even the experienced online players ensure the security of the website before inputting their sensitive information. Blockchain technology prevents this as it uses sophisticated mechanics to secure personal data and protect player’s funds.

  • Allows Anonymity

Since some players do not want their names to be displayed on gambling sites but are interested in betting and would like their names to be protected. Blockchain technology enables these sets of players to enjoy games with their identity protected. They can do everything like other players bet, deposit, and withdraw funds seamlessly using cryptocurrency as a banking method.

  • Increases Global Reach

Online casinos that use blockchain enjoy the patronage of players from different locations. Blockchain technology has made it possible to reach out to many more players who might have lost interest due to security or any other challenges. It helps to bring more players online with an improved usersโ€™ experience that results in access to new markets and playing audiences.

  • Low Transaction Rates

Blockchain removes the role of the middleman prevalent in traditional banking, which results in cheaper transaction fees. It also reduces multiple transaction charges and offers players the least transaction rate with swift processing time, which increases playersโ€™ overall experience.

The Impact of Blockchain on Playersโ€™ Trust

โ€œCryptographic truth is a superior way for the entire world to operate. Once you experience the transparency, personal control, and lower risks of a world powered by truth, rather than a world backed only by ‘just trust us’ ideas, you simply cannot go back.โ€โ€” Sergey Nazarov, Co-Founder of Chainlink

Blockchain casinos have a positive impact on playersโ€™ perception of gambling.

  1. Confidence Booster: Players do not hesitate to fund their accounts and play games if they know that the online casino games and other activities are fair and transparent.
  2. Solidifies Reputation: Online casinos using blockchain are believed to be reliable than traditional online casinos. This uniqueness puts them at the forefront of others.
  3. Increases Customer Retention: Players who trust a casino are bound to come back for more. Blockchain enables casinos to have returning customers.

Revolutionize Online Gambling with Blockchain and Cryptocurrency

In their article, โ€œHow Blockchain and Cryptocurrency Technology Could Revolutionize Online Gambling,โ€ S.M. Gainsburry and A. Blaszczynski note that transparency begets confidence among players, operators, and regulators who optimise blockchain technology.

Online casinos have made gambling convenient for players, but the fear of games being fair to players has caused trust issues between both parties. Blockchain technology is deeply rooted in transparency, and it is the best way for online gaming platforms to prove their authenticity to users.

Virtual casinos that embrace it win their customersโ€™ trust and protect them from cyber attacks, fraud, and exposure of personal details.


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