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How “Provably Fair” Technology Is Changing Trust in Online Games
What “Provably Fair” Generally Is
Many provably fair platforms utilize a cryptographic commitment. Before each round, the operator generates a secret value (commonly referred to as a server seed) and displays its hashed version. Hashing is the process of converting data into a consistent-length digital footprint. Altering any aspect of the initial data will generate a different digital footprint — making future alterations detectable.
Results may be created from the server seed, client seed provided by the player, and an increasing counter number (nonce). Once the round ends, the server seed will be made available to the user. The user can then perform the exact calculation again and validate that the disclosed seed corresponds with both the previously disclosed hash and ultimately yields the result shown to the user. This is typically referred to as a commit-and-reveal format: The operator commits to some information prior to the occurrence of an event, and discloses it afterwards.
Provided this type of commitment structure allows a user to provide proof that there have been no substitutions of a previously committed seed once it has been seen what actions were taken by a user. It also allows for repeated verification by multiple individuals who could use the same published input values and algorithm to arrive at the same result.
Verifying Does Not Equate to Being Random on Its Own Merit
The successful execution of a hash comparison confirms two things: The disclosed input was equivalent to the pre-existing commitment, and it proves nothing about how predictable or unpredictable the generation of seeds was, nor does it prove anything about the likelihood of winning based on an outcome-mapping function, nor does it prove that the posted rules and actual game operations are identical.
Therefore, regulatory testing encompasses much more than just verifying a hash. For example, the UK Gambling Commission's technical standards stipulate that random outcomes must be capable of being demonstrated as having sufficient randomness so as to meet a high level of confidence. Regulatory testing procedures can include documentation reviews, source-code analyses, statistical tests of raw RNG outputs, examinations of shuffled deck data, and assessments of how raw numbers are translated into gaming results.
This differentiation is important due to the fact that technically verified results can arise from incomplete rule sets and/or poor implementations. A platform may allow users to replicate a calculation while failing to document the underlying probability model(s) governing those calculations. Documentation of both the algorithm, inputs, game rules, and checking methods are essential for verification to be meaningful.
Blockchain Adds Some Things—and Can’t Add Others
A blockchain is a way for selected records to be made public, and to make them difficult to quietly modify. For instance, there are reviews of Phenom Poker, which describe a blockchain-based gaming environment with smart contracts on Base.
Just because information is available publicly doesn't mean that it will be easily understood. As an example, a smart contract could have readable human-language source code that has been compiled into bytecode. A reviewer would typically want to verify that the code they see matches what was actually deployed at a given blockchain address. In addition to bugs or poor programming practices, a smart contract can also exhibit poor operational security, provide misleading user interfaces, and grant inappropriate permissions.
It is also worth noting that a blockchain cannot magically make an off-chain action provably true merely because the action is associated with one.
To Determine if a Fairness Claim Is Valid
There is no requirement for readers to have knowledge of advanced mathematical concepts to determine whether a fairness claim merits further investigation. With regard to evaluating claims based upon clear systems, reasonable people deserve answers to practical questions regarding such a system without resorting to marketing jargon:
What is being verified? The platform should clearly differentiate between integrity of seeds, randomness, game rules, transactions, and custody of player funds.
Can users reproduce the verification? The platform should disclose the inputs and methodology used to produce results such that users can attempt to reproduce the results themselves.
Has the Random Number Generator (RNG) been independently tested? The external testing should verify functionality of the RNG itself along with its implementation and the mapping of numbers generated by the RNG to possible outcomes.
Are the game rules and probabilities described? A fair RNG can still generate sequences that favor the house over time (i.e., unfavorable odds); thus, users need both randomness and clarity of game mathematics.
Was the smart-contract code verified and audited? By comparing source code to the deployed bytecode of the smart-contract, users can increase transparency. Auditing the smart-contract for potential vulnerabilities adds additional layers of validation.
What other aspects remain outside the scope of your proof? Identity verification, data protection policies, withdrawal procedures, dispute resolution processes, compliance with local laws governing operation of your site, and responsible use policies should be evaluated separately.
The best definition of "provably fair," therefore, is very narrow but useful. Through cryptography, we can demonstrate that certain types of data have not been altered since they were cryptographically committed and/or published. Additionally, through independent testing we can validate whether an RNG behaves as intended. Furthermore, blockchain technology allows for preservation of public records and display of verified contract code.
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