Crypto casinos have risen to prominence in recent years, starting as a niche interest area before becoming one of the fastest-growing areas in all of online gaming. A number of factors are behind this rise, including increased interest in cryptocurrency, a desire for faster transactions, and the promise of provably fair games.
For many customers, one of the most appealing aspects of crypto casinos is the use of modern technology, but how does this gambling tech actually work? In this article, we'll take a closer look, exploring cryptocurrencies, blockchain technology, provably fair gaming systems and everything else players should know before signing up.
One of the biggest selling points of modern crypto casinos is the promise of provably fair gaming. This appeals to players who may be sceptical of traditional casinos and how fair their games really are. So what does this actually mean in practice and how does the casino technology guarantee genuinely fair outcomes?
At its core, the concept of provably fair gaming is about providing the tools for players to verify that random number generation in online casino games is genuinely random and the outcome has not been unfairly influenced by the casino. Examples of games that use random number generation include mines, crash games, roulette and dice games.
Historically, when you go to a traditional online casino and play their games, you have to trust that the game is coded to be fair, that random outcomes are truly random and that the casino is operating fairly behind the scenes. Even within regulated markets, verified by third parties, the actual players have no visibility into this process.
Crypto casinos with provably fair games change this by allowing you to verify fairness yourself. At the same time, because the random number generation is open sourced, outcomes can also be verified by third parties.
Provably fair gaming is beneficial to players and online casinos alike.
For players, it provides a level of transparency that increases confidence in the platform where they are spending their hard-earned money. Many players are more likely to want to play games if they know the outcome is fair, they know they have a real chance of winning and the casino is not able to manipulate the outcome.
For crypto casinos, provably fair gaming provides a clear area of differentiation from traditional online casinos. This can make it easier to create compelling marketing content and attract new players.
One of the biggest issues players have with casinos is an underlying suspicion that the outcome may be decided after a bet has been placed. Crypto casinos operating provably fair gaming systems allow users to verify this is not the case. As a result, players may feel more inclined to continue playing the game, even if they lose a round or two.
Provably fair gaming systems use four main components to randomly generate outcomes:
The random outcome cannot be generated unless all four components are present. Therefore, the casino does not have direct control over the random number generation process, as the client seed is both necessary and controlled by you.
Players are able to accept a randomly generated client seed, or choose their own for greater security. A reputable and respectable crypto casino will actually encourage players to use their own client seed.
The server seed is cryptographically hashed, locking it in before the game is played. The server seed is revealed after the game ends and can be cross-referenced against the hash to ensure the number was not changed after the game began. The number used once (nonce) changes with each round of gameplay. Therefore, even if the client seed and server seed remain the same between rounds, each round will still generate a unique and random outcome.
Crypto casinos leverage blockchain technology to provide players with a more secure, transparent and efficient online gambling experience. This use of blockchain tech is one of the key ways crypto casinos are distinct from more traditional online casinos and understanding this technology helps to highlight why this difference matters:
Blockchain technology is perhaps best known for powering cryptocurrencies like Bitcoin. A blockchain is a distributed digital ledger, which is essentially a system for recording information about transactions. The records are decentralised and spread across a network of computers, so there is no central authority and no single point of failure.
A blockchain is a highly secure record system. Each record is linked to the record before it in a chain and tampering with a record would break the chain. In other words, once data is recorded on a blockchain, it cannot be altered without alerting the entire network. This makes the system highly secure and the records tamperproof.
A common misconception is that crypto gambling involves running games on the blockchain. However, in reality, the primary use of blockchain technology is to power financial transactions, including deposits into online casino wallets, withdrawals of winnings to crypto wallets, and the verification of all of these financial transactions.
When transactions are processed using cryptocurrencies rather than traditional currencies, there are a number of advantages, such as faster transactions, lower transaction fees and enhanced financial privacy. These benefits are partly because blockchain networks operate 24/7 and partly because transactions do not go through bank clearing systems. Instead, transactions are checked automatically, using cryptography, without human involvement.
Modern crypto casinos like Stake.com accept a variety of cryptocurrencies, providing options for users who may have funds stored in a number of different digital wallets. The casinos will also allow you to deposit from multiple wallets. For example, you could deposit some Bitcoin and some Litecoin into your casino account.
Some of the most common cryptocurrencies accepted by crypto casinos include:
In recent times, the emergence of so-called 'alt coins' has helped to attract even more people to the world of cryptocurrency. By supporting a wide range of these digital currencies, crypto casinos are able to attract a broad audience of international customers, rather than relying on customers from a single location.
It should also be noted that different cryptocurrencies use different blockchain networks. For example, Bitcoin has its own network, whereas many alt coins, including Ape Coin, operate on the Ethereum blockchain.
Crypto casinos have experienced rapid growth in recent times, so what is actually behind this newfound popularity?
The best online crypto casinos place a strong focus on fairness and transparency. Aside from delivering provably fair and random outcomes on games, they also offer upfront information about the house edge, the return to player percentage, the potential winnings from each bet, and the highest scores players have achieved.
Many crypto casinos highlight their open systems, while the use of cryptocurrencies can also increase transparency, as crypto transactions are permanent and cannot be altered. Ultimately, all of this combines to create a clear sense that crypto casinos are trustworthy and accountable to their player base.
Many players are also drawn to the way crypto casinos make use of modern technology. This can be seen not only through the focus on cryptocurrency, but also through other aspects of the user interface, such as the provision of live statistics, the emphasis on mobile-friendly gaming and the use of interactive features, like leaderboards and live chat.
This has helped to generate a feeling that crypto casinos are the casinos of the future and that traditional casinos may ultimately be left behind. The focus on innovation has been especially valuable in attracting younger and more tech-savvy gamblers, who are interested in social features and the underlying game mechanisms.
Many crypto casinos are able to build large player bases from all over the world. Most cryptocurrencies operate away from traditional banking systems and almost all are global currencies. This can reduce barriers associated with regional payment limits and can also eliminate the need for currency conversions.
Of course, crypto casinos and players are still subject to local laws, but many casinos are able to target an international audience. As an example, Stake.com is available in multiple languages, including English, Spanish, French, German and Japanese. It's a legal casino for players in much of Europe, Latin America and in parts of Asia and Africa.
With an understanding of the underlying technology behind crypto casinos, there are further details players should know before signing up. Learning this information will help players to manage their own expectations, understand how these casinos actually make money and get to grips with the ways fairness can be checked.
Many reputable crypto casinos will provide verification tools, allowing you to confirm that the games you have played were genuinely random and fair. In addition to allowing players to choose their own client seeds, these platforms will allow you to view important information for double-checking game outcomes, such as:
Using this information, you can run a verification tool to confirm the outcome. Crypto casinos usually provide easy access to a calculator tool, where you can check the outcome by inputting the client seed, server seed and nonce.
The very best platforms will also provide links to third-party websites, which can also check the fairness of games away from the casino, providing greater peace of mind. This open sourcing of the randomisation process is one of the biggest differences between crypto casinos and traditional online casinos, resulting in far greater transparency.
It's important to understand that the concept of provably fair gaming does not prevent the existence of a house edge. In simple terms, the house edge is the built-in mathematical advantage the casino has over its players. It's expressed as a percentage, indicating the amount of wagered money the casino expects to keep over time.
For example, a 5% house edge means that for every $100 wagered by players, the casino expects to keep an average of $5, with players collectively getting back an average of $95.
The house edge is what makes it possible for a casino to be profitable and provably fair gaming systems still include this mathematical advantage for the casino. In other words, provably fair gaming verifies randomness and fairness, but it doesn't guarantee profit for players or eliminate the casino's overall advantage.
Another of the defining features of modern crypto casinos is the presence of original games, with a great example being Stake Originals. While online casinos have traditionally relied on external software providers for their games, which are often slot-based or table-based, crypto casino originals are developed in-house.
The focus for these original games is usually on fast gameplay and provably fair mechanics.
Some of the most common game types include:
The most important technology powering modern crypto casinos are cryptography and the use of blockchain technology. Cryptography is used as part of provably fair gaming systems, ensuring random outcomes are: genuinely random, unable to be manipulated by either the casino or the player, and able to be verified independently.
Meanwhile, blockchain technology powers cryptocurrencies, including Bitcoin and Ethereum. These digital currencies are used for deposits and withdrawals, and can remove geographical barriers. They also enhance transparency and can speed up financial transactions by removing intermediaries, such as traditional banking institutions.
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