Updated: January 3, 2023
Blockchain Casino RNG – Randomness At Blockchain Casinos
Game fairness has always been one of the most-debated issues when it comes to gambling. Especially when they don’t win, punters often worry if the match has been fixed, if there’s a card up a dealer’s sleeve, if the dice are loaded, or if the slot machine is rigged.
This issue is, therefore, not new to online gambling. However, since casino games are intangible, it’s somewhat intensified at online casinos.
In many cases, online players are wary simply because they don’t understand the concept of house edge and believe games are unfair. However, especially if the casino is not trustworthy, they might be right.
How can players guarantee that casino games are 100% fair and random?
Renowned casinos may rely on their reputation, and licensed casinos have someone that can vouch for their fairness – or punish them if they cheat. Unfortunately, none of these options is foolproof.
Blockchain casino RNG offers the latest possible solution to this timeless problem. But let’s not get ahead of ourselves.
Throughout this article, we will:
- Go through the ins and outs of casino RNG.
- Explore the application of blockchain technology to casino RNG.
- Learn the advantages and drawbacks of blockchain casino RNG.
- Discover what casinos apply blockchain RNG in the most player-favorable way.
Top Casinos Using Blockchain Casino RNG
RNG Explained – How Online Casinos Generate Random Outcomes
At online casino games, outcomes are generated by complex and esoteric mathematical algorithms through a process called Random Number Generation (or RNG).
However, once we start looking into it, online casino RNG isn’t as much of an unfathomable beast as it may seem. Instead, it’s what makes casino games possible, fun, and fair.
How Online Casinos Use RNG
Even the simplest forms of gambling have a mechanism that generates randomness: when you’re rolling a die or dealing a card, you’re using one.
Online casino RNG is simply a more complex way of achieving the very same randomness.
Just like dice are designed with a different outcome on each face, online casino games are also designed with multiple possible outcomes, which are uncontrollable and unpredictable.
The difference is that online games use RNG instead of sides or cards to generate that randomness.
Here’s how it works for a slot machine:
- The RNG
The RNG produces a constant stream of randomly generated numbers assigned to the slot machine’s symbols.
- The Spin
When you hit the spin button, a random number will be selected, determining the reel position.
- The Result
The game’s software will then translate the spin’s outcome into a tangible event on the slot machine: a win or a loss.
It’s important to note that the game’s outcome is determined in a matter of milliseconds after you press ‘spin’ regardless of how long the spinning animations last.
Casino RNG works similarly for most online casino games, such as:
The notable (and obvious) exception here is live casino. Live games with real dealers, such as live roulette or live blackjack, don’t need a mathematical algorithm. Just like land-based casinos, they originate randomness via physical means, such as shuffling cards or setting the roulette wheel in motion.
INNOVATIONS POSSIBLE DUE TO CASINO RNG
The complex mathematical algorithms behind online casino RNG have allowed for slot machine innovations such as cascading reels, megaways, ways-to-win, and more!
How Fair Is RNG?
Although the outcomes of casino games using RNG are unpredictable, they still rely on a deterministic algorithm.
Regardless of how complex this algorithm is, it can never produce purely random outcomes, which only occur in nature: casino RNG is, therefore, pseudo-random.
What’s more, it’s theoretically possible to manipulate the outcome if we can control the game’s random seed – the number used to start the pseudo-RNG for that game.
Therefore, casinos have to rely on external factors to ensure the fairness of their games:
- Reputation – casinos with an established name and a large player base risk their reputation if their games aren’t fair.
- Third-Party Providers – casinos using games developed by renowned external providers – such as NetEnt or Microgaming – have no control or access to the games’ algorithms.
- Licenses – governing bodies such as the Malta Gaming Authority or Curaçao EGaming regulate and supervise casinos and casino game providers, ensuring the RNG is fair and random.
- Third-Party Testing – casinos can also have their games tested by third-party service providers such as GLI, which test game algorithms and certify that they have not been tampered with.
Unfortunately, none of these solutions are perfect. For once, reputation is not a guarantee, just an indicator. More importantly, licenses and third-party testing rely on external institutions. They also incur costs for the casinos that are then passed on to the players.
RNG IS STILL A TECHNOLOGICAL IMPROVEMENT
Despite being technically hackable, the algorithms behind online casino RNG are so complex that it’s virtually impossible to manipulate them. It’s arguably easier to cheat at land-based casinos, for the player and the house alike.
Blockchain Casino RNG – Can It Improve Casino Randomness?
Despite being a significant technological improvement to any randomness achieved using mechanical means such as dice or cards, which are always susceptible to cheating, online casino RNG still isn’t the perfect method.
Luckily, another technological improvement has the means to enhance the fairness of online games: the blockchain.
Blockchain technology can do so in two different ways:
- Provably fair games.
- Blockchain casino RNG.
As we’ve covered in a previous article, provable fairness is a blockchain-based process allowing users to verify the outcome of every spin themselves.
What Is Blockchain Casino RNG?
Blockchain casino RNGs use blockchain-based random numbers to generate game outcomes.
Unlike traditional RNGs, which are centralized, blockchain-based RNGs are highly transparent and are not controlled exclusively by any institution, including the casinos themselves.
(If you’re interested in learning more about the advantages of decentralized applications versus centralized ones, you can have a look at this article.)
With blockchain technology, the seed that originates the randomness can be generated by both the casino and the player, thus ensuring that neither can control the game’s outcome.
For a more practical example, let’s look at the blockchain casino RNG used at CasinoFair:
“In a traditional online casino, random numbers are generated purely by the casino’s Remote Gaming Server (RGS). The player not only has to trust that they’re random, but also that they’re being used in the correct order. Even if the random number generator (RNG) has been reviewed by external auditors, casinos can employ sophisticated methods to manipulate the RNG to favour their own prop players. Furthermore, analysis of the random numbers would not enable auditors to ensure each random number was used in the right game.
Our technology generates random numbers by combining both the player and casino’s random numbers, generated locally on their respective devices in real time. Outcomes are provably random, guaranteed to be within the correct sequence and thus cannot be used out of order, eliminating the possibility of fraud.”
From FunFair’s White Paper
FunFair’s case illustrates one of many possible iterations of blockchain RNG. Others include:
- Verifiable Random Functions are functions that, given an input, produce a pseudo-random output along with a proof, which is verifiable on-chain. A notable example is Chainklink VRF.
- Verifiable Delay Functions impose a time delay between the input (the trigger that causes the randomness) and the output (the event), thus preventing manipulation of the RNG. The inherent delay of VDFs, however, makes them unviable for blockchain casino RNG.
- Block-hash – this solution uses the hash of transactions to produce randomness. Albeit verifiable and applicable to blockchain casino RNG, block-hash is a flawed source of randomness since it’s subject to manipulation by the miners.
- With Bitcoin Beacon, randomness is produced on the Bitcoin blockchain using transactions and timestamps. Although highly unpredictable – thus practically random – Bitcoin Beacon is also prone to manipulation.
As we can see from the examples above, most forms of blockchain-based RNG – and, consequently, blockchain casino RNG – have disadvantages:
- On some iterations, such as Block-hash or Bitcoin Beacon, it can have safety concerns.
- It’s often slower than other forms of RNG, making it unviable for online gaming.
- Blockchain-based RNG often requires many resources, making it too expensive to implement at online casinos.
However, when used to its full potential, the benefits of blockchain casino RNG are undeniable.
Benefits of Blockchain Casino RNG
Blockchain casino RNG, such as the one applied at casinos such as CasinoFair, has an unmatched potential to achieve true fairness, especially when combined with provable fairness:
- It overcomes the third-party constraints that more-traditional, centralized systems have.
- It’s harder to hack.
- Since the blockchain-based algorithms are often publicly available, it’s also more transparent.
- It’s not controlled solely by the casino, which makes it fairer.
Despite still being in its infancy, blockchain casino RNG is a promising technology. However, we believe that it has the potential to disrupt online gambling.
Given enough time, more and more blockchain casinos will embrace it. As the mainstream world takes note of blockchain technology, even traditional online casinos might look at blockchain casino RNG as a viable solution.
Casinos And Gambling Dapps Using Blockchain Casino RNG
For now, only a few casinos and gambling Dapps use blockchain-based RNG. If fairness is your concern, we suggest you try the following websites:
Do note that Stake casino does offer more mainstream casino games, which don’t use blockchain casino RNG. Only their Stake Originals have verifiably random outcomes.
All the other games exclusively feature internally-developed, provably fair games that operate on the blockchain.
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January 16, 2023DAO.Casino – Blockchain Casino Protocol
DAO.Casino was formed by a software development team, based in Russia, who is looking to reap the well-known benefits of blockchain technology to implement them on the online gambling industry. Their main goal is to tackle big industry issues like lack of transparency and need for third party involvements to ensure quality. To help build on this, technologies like Ethereum’s Swarm or the IPFS […]
January 16, 2023Interview with FunFair’s CEO Jez San
FunFair is without a doubt spearheading the movement of blockchain technology within the online casino business. The alliance between these two concepts is one that we have covered extensively. Since FunFair is built on the ETH blockchain, it joins the ranks of our Ethereum casinos selection, but it also fits within our general love for […]
January 6, 2021Interview with Edgeless Co-Founder Tomas Draksas
Edgeless is a blockchain based project whose goal is to offer players the chance to play on a decentralized casinos. The platform currently offers 2 fully working products: Dice and Blackjack. In order to play users have to use their native token EDG which is an Ethereum-based token (ERC20 more specifically). They are only in the […]
September 1, 2021Blockchain Technical Committee by GSA (UK)
Earlier this year the GSA – Gaming Standard’s Association – formed the Blockchain Technical Comitee. This is interpreted as a major hint that the GSA will be looking to integrate the technology behind cryptocurrencies onto the online gambling industry. How the committee plans to execute this is still unclear at this point. A meeting organized by […]
March 10, 2021Bitcasino pioneers Fiat-to-Bitcoin conversion
Big news for every casino enthusiast out there. Bitcasino.io is providing their users with the ability to directly convert fiat money (Euro or Dollar) into Bitcoin. This is the first time an online casino has implemented this kind of conversion service that eliminates the need of going through an exchange. This has been made possible through a […]
June 23, 2020FunFair will revamp licenses for Blockchain gaming
Funfair technology looking for licenses by regulators As we all know by now, everything related to online gambling is ripe for disruption and improvement, specially with the emergence of blockchain technology. Many projects know this and are trying to setup their “start-up” in the business using the technology behind cryptocurrencies like Bitcoin to take advantage […]
January 3, 2023Would Gambling Tokens Benefit More from Bitcoin Cash?
As we’ve previously covered, gambling is to blockchain what fish is to water. The advantages of bringing these two together are plenty and clear to see. However, due to the incipient nature of the technology, there are still some hurdles to overcome in order to make blockchain and cryptocurrencies the perfect environment for gambling, including sports betting, […]
January 3, 2023Overwhelming blockchain casino club to raise $1 billion in Macau
Macau, known as one of the world’s top destinations for gambling, is about to further raise its game as an international company is working on a billion-dollar ICO to build the world’s first ever blockchain-based casino gaming club in the island. Wide Rich Global Company, an investment venture based on Malta (yet another blockchain-friendly island), announced their […]
February 7, 2023Provably Fair Casinos – What Is It? Does It Really Work?
Provably fair casinos have revolutionized online gambling. The concept removes even the possibility of a rigged result. With provably fair games, you can verify the authenticity of each bet you place. This means the casino can’t manipulate the outcome – either by design, or because the result is verifiable. Provably fair games are available on […]
January 3, 2023Isle of Man reaffirms its leadership by launching new blockchain office and sandbox
The Isle of Man, a jurisdiction with one the world’s most advanced legal frameworks for cryptocurrency and iGaming, is launching a new Blockchain Office and regulatory sandbox to cater to the relinquished billionaire blockchain market. As reported by FSTech, the office will be dedicated to facilitating communication between regulators and companies in the sector, enabling the industry to flourish in […]
March 10, 2021Fishing Master – TRON Gambling Dapp Review
Fishing Master is a blockchain gambling game, and in fact, one of the most popular DApps – decentralized applications – on the Tron platform overall, with an average of 2.3k daily users as of February 2019, according to DappRadar. Its simple gameplay is based on casting a fishing rod in order to receive a random amount […]
March 10, 2021Malta Blockchain Summit 2018
Malta has cemented itself as the “Blockchain Island” by now given its very friendly approach toward blockchain related businesses. Binance and OKEx are major players in the game who have announced their relocation to Malta. To capitalize on this momentum, Malta’s Blockchain Summit is set to take place on 1-2 November on St. Julian’s InterContinental […]