Announcing our partnership with The Bitcoin Strip!
In recent months, the team here at the Crypto Gambling Foundation (CGF) have been working tirelessly behind the scenes to improve operator standards, whilst developing our brand and expanding our reach throughout the industry. With the main goal to revolutionise the implementation of provable fairness and its importance in the gambling industry, we are constantly looking for others that share the same ideals to assist in achieving our vision.
A product that has drawn our attention in recent times has been The Bitcoin Strip. Their dedication to ensuring a strategy similar to ours meant it was a no-brainer for both parties to join a partnership.
Whilst in early stages, I took the time to sit down with the owner of our newest partner, Nick, to discuss a few passionate topics that I'm sure a lot of our readers and stakeholders would love to hear about.
Whats the story behind the Bitcoin strip?
I started out playing online poker back in 2006 when the industry was going through massive growth. I sat at the tables for 10 to 12 hours a day and ended up playing professionally for several years. That all changed in 2011 when the industry took a major hit during "Black Friday" – an enormous crackdown on online poker sites by the US Government that led to the player base shrinking enormously.
Coincidentally, this came at a time when Bitcoin was beginning to get some attention. I saw an opportunity for players to side-step the regulators to play with what was essentially considered "play money" at the time. Bitcoin poker sites like SealsWithClubs were beginning to see regular activity – a hint at what was to come for the Bitcoin gambling industry.
In light of this, I decided to begin my journey in the Bitcoin gambling affiliate space. Having had affiliate experience in the traditional poker and casino industry before, I felt this was the natural next step – and one to take before the rest of the industry caught on.
So The Bitcoin Strip is the culmination of this journey, seeing itself reiterated on and rebranded a number of times. It's crazy to think how serious this industry has become thinking back to those Bitcoin "play money" days of 2011.
How long have you been around for and what have you learn the most from this project?
There are a few things I've taken away from my time in this space, the first being that Bitcoin is king. Over the years, many other cryptocurrencies have claimed to be pulling in enormous betting volumes. I remember when EOS dice sites were posting revenues in the hundreds of millions. The reality is that these numbers are wildly exaggerated thanks to the low cost of faking volume on these blockchains. Our data shows that there is very little appetite for most of these altcoins when it comes to gambling.
It's also very clear that cryptocurrency gamblers are not like traditional gamblers. They tend to be younger, more tech-savvy and far more interested in a good user experience - anonymity is also key. Compare top Bitcoin betting sites like Stake with the likes of Bet365 or 888 and it's obvious we're talking about two very different markets.
What are some things we should be keeping an eye on the horizon for?
Smart contract gambling on Ethereum is going to be a big deal. Depositing and withdrawing with Bitcoin is one thing but being able to trustlessly bet without a middleman is going to be a game changer.
The reason this hasn't taken off yet is that each bet requires a block confirmation (15 seconds on Ethereum). There are a number of platforms that have tried to circumvent this through "state channels", but this reintroduces trust assumptions that defeat much of the point in decentralized gambling.
Going further, it's likely that Bitcoin gamblers will be able to take advantage of this with the introduction of low-trust ETH-BTC bridges like what we're seeing with tBTC. This will allow gamblers to essentially bet Bitcoin using highly secure Ethereum smart contracts and without ever losing custody of their funds to a third party.
Finally, there are stablecoins. I'm surprised by just how little up-take there is for stablecoin gambling by the operators and players in this space. USDT has had some integration, although what's needed is the inclusion of decentralized stablecoins like DAI, whose transactions are censorship resistant and whose value is – I'd argue – more secure.
Gambling Bitcoin is great, but betting with non-volatile crypto definitely has its place.
Where do you see things in the crypto space in the next decade?
If we're being really ambitious I see Central Bank Cryptocurrencies being issued and a blurring of the lines between Fiat and Crypto gambling. Government-regulated casinos will accept cryptocurrencies in the form of digital dollars, euros and pounds, with KYC deposits of Bitcoin and other public cryptocurrencies.
I also imagine we'll have a vibrant space of smart contract casinos with Ethereum dominating this sector. This will be thanks to the widespread adoption of web3 browsing from the likes of Chrome and Firefox, as well as native crypto-wallets built into Samsung, Pixel and iPhones. The ability to interact with blockchain-based gambling apps will be seamless and the functionality will be mind bending in today's terms.
Removing trust from the gambling system will unlock incredible new ideas that we can't even imagine today – similar to how the decentralized finance space is opening up entirely new concepts previously not thought of.
Who do you consider to be the biggest and most influential role models in the crypto gambling industry?
From operators and regulators all the way through to affiliates and players, there are a lot of people doing their part to ensure cryptocurrency gambling becomes a safer and more transparent market than traditional betting.
On the operator side, Stake is doing all the right things for their players and the industry. On top of their license from Curacao, the platform goes a long way to self-regulate and as a result have demonstrated what Bitcoin casinos are capable of.
On the Ethereum side, FunFair is demonstrating what can be done with smart contracts as a means to transparently resolve the trust issues that have previously plagued this space. The improvements in Ethereum technology over the coming years will hopefully give FunFair more space to shine.
While the CGF do not act as a regulator, they do provide some much needed integrity for this space. Their role in evaluating and certifying cryptocurrency casinos will prove evermore valuable as the industry grows.
In what way (if any) does provable fairness have an influence on operator reviews and rankings on your site?
Provable fairness (with an open source method of verifying bets), is one of the most important factors for us. With Bitcoin gambling, we see no reason why a casino cannot implement such a basic trust verification tool and expect to see more operators adding this feature in due course.
Do you get many queries from viewers regarding operator fairness and their provable fairness implementations?
I think the most telling thing is that we don't hear any complaints from players using casinos with provable fairness. In an industry that currently operates in a low-regulation environment, it's unsurprising that many players are suspicious of bad beats from platforms that have no way of verifying fairness.
The complaints we do receive are near-exclusively from traditional-styled casinos that have "tagged on" Bitcoin deposits and withdrawals with the same low level of opaqueness you might expect.
What would you like to see from/or help influence with this partnership with the CGF?
It's clear that the industry is in need of an organisation like the CGF. We're hoping that by including and making clear who our CGF-verified partners are, we'll be able to provide a much safer experience for our players.
Through our partnership, we are keen to help establish a globally recognized certificate of trust that can be applied to operators who adopt the highest standards of transparency and fairness.
Benchmarking true provable fairness
With the crypto gambling industry constantly evolving, it can be easy for operators to fall behind with the latest innovations and optimal implementations. This is an understandable setback when it comes to keeping up with the fastest growing industry in the world; but when it starts to affect the expected standards towards fairness in gambling, we feel the need to step in. We want to establish a genuine representation for the players and their best interests.
In our previous article, we wanted to raise appropriate awareness towards operators in the industry who are refusing to conform to industry standards in regard to how they handle the fairness implementations on their platform. This article will discuss the technical reasoning behind why these outdated implementations of provable fairness are dangerous for players, as well as what would need to be done to fix the inherent problems associated.
The problem
- If you are using a unique server seed and/or client seed pair during each bet, this means that ultimately the power of the result is in the operators control. This is only unless the player checks the current pairing before each and every bet. Not only is this cumbersome but absolutely ridiculous when it comes to the player experience. This sort of implementation not only takes advantage of the fact players must blindly trust the operator if they don’t validate each pair, but also is somewhat deceitful when an appropriate solution exists but isn’t implemented.
The solution
- Implement a nonce into the provably fairness algorithm OR use the salt/hash method. These methods ensure that you can transparently ensure that all bets conform to a genuine result stream that has been predetermined even before a player sets up an auto-betting strategy, without the need to tediously check before you place every single bet with that operator.
- For operators like Luckygames, this would easily be solved by extending on their current provably fair algorithm to incorporate a nonce for each bet. This is not an unrealistic implementation and something that all players should be demanding to ensure there is no possible deceit in play.
Our goal here at the Crypto Gambling Foundation is to ensure the people with the smallest voice get the most out of their gambling experience. It’s easy for large casino operators to blindly provide a service that doesn’t ensure true legitimacy, especially when they utilise their large community following to dilute the concerns of players who genuinely care about their wellbeing.
There is nothing more harmful than operators in our industry who tarnish the integrity of provably fairness, especially consider how beneficial it is when implemented correctly.
Luckygames.io - The monarch of manipulation?
You read that correctly. Luckygames.io are in a position where they can easily manipulate the result of your bet.
Luckygames are currently preaching that they are a provably fair online gambling website. This is not the case.
Operating unfairly
Expecting players to change their client seed every single bet
No warning that Luckygames have the potential to manipulate results
Provably fair games use a nonce - a random number attached to the end of your client seed that ensures each result is random. Changing the nonce on the end of your client seed (after your bet) tells you what the result would have been for the next spin or the next hand. Luckygames.io do not use a nonce. Instead - to verify that your bet is completely fair, you need to manually change your client seed after every single bet.
The image above states ''since you choose your own Client Seed, there is no way for us to alter the outcome''.
How many players are actually going to choose their own client seed before every bet?
Change is necessary
Considering this would take their development team little effort to implement, it makes us wonder whether they are actually manipulating results.
Our role here at the Crypto Gambling Foundation is to raise awareness about the issues that exist within the crypto gaming industry. We are here to promote essential practices, that create an honest and fair gambling experience. While we aren’t here to call out companies for the sake of doing so, it is only right that we point out that there is a company out there that seem to be deceiving their players.
Luckygames.io have currently taken over 90 billion bets, but how many of these have been placed with a system that is completely provably fair? None. As previously stated, we are here to educate and to address issues in this industry. Until this is changed, Luckygames can be accused of cheating their players.
We are a foundation that cares, and wants to see these issues be rectified. But as a foundation, we are displeased that this has been allowed to happen for so long. The pressure is on you now Luckygames - we need you to fix this. It is about time, as a community - that we take a stand against websites that preach provably fairness without letting their games do the talking.
We want to advise our players of the risks that playing on this website may bring. Are you going to allow your bets to be potentially tampered with?
They know that players are not going to sit there every five seconds and manually change the client seed.
They know that what they are doing is truly unfair.
They know that they are manipulating players that have little education about provable fairness.
We know that we won’t stand for it.
The “Welcome Bonus” gimmick
Online casino bonuses come with Terms & Conditions that are not player friendly. Accepting these bonuses often leads to bettors not being able to withdraw their winnings, and in some cases having both their deposit and bonus confiscated by rogue casinos.
The average gambler, especially those unaccustomed to the online casino scene, are often not aware of some of these bogus T&C's. Many see the welcome bonus sign and proceed to deposit funds, thinking it is all free money. Sadly, a lot of online casinos operate solely to cheat players, and do everything possible to ensure players lose.
Wagering Requirements
The most controversial welcome bonus condition set by casinos is called the wagering requirement. This is the amount set by casinos which a player has to bet before their bonus is credited into their cash balance.
Most times, when a player opts in for a bonus, they are unable to withdraw their deposits and bonus until they have made enough bets to reach the required turnover threshold set by the casino.
It is worth considering that casino games are always established to be in favour of the house. The house-edge is set in a way that ensures players lose in the long-term. Even when gamblers go on winning runs, they eventually lose trying to reach the turnover limit set by the casino.
To add insult to injury, some bets are deemed ineligible for clearing turnover requirements. For example, bets made playing blackjack don’t often qualify because very good players are capable of devising strategies to minimise losses and increase their win rates.
In sports betting, the required odds are set very high by the casinos. This, coupled with the number of times a player must turn over their deposit and bonus amount ensures they lose it all. Generally casinos aren’t enamoured towards winning gamblers and often ban or limit them as soon as possible.
Experienced online gamblers often say claiming welcome bonuses is too much of a hassle these days. However, there are still genuine offers that aren’t designed to cheat players.
Casinos also use this method to protect themselves from players that abuse sign-up offers. There are a few things a player can do to ascertain if a bonus is worth claiming or not, before depositing their hard-earned money into an online casino.
- Look out for predatory T&C's
It is the player's responsibility to always read bonus terms and conditions. The player must make sure they fully understand all clauses before making a deposit. If the turnover requirement is draconian, avoid the casino at all cost. - Operating with true fairness
Before depositing into any casino, it is very important to confirm that they are either providing provably fair gambling, or in some way or another are regulated and have a license. If they don’t have any form of fairness system in place, avoid them at all cost. - Positive reviews and endorsements
Players must try as much as possible to search online for reviews and feedback from other players, both positive and negative before making a deposit. This is often the best way to gauge if a casino will cheat you or not. - Verification & jurisdiction
Most casinos require KYC (know your customer) to determine if a player is eligible to use their platform. Always confirm if a casino allows players from your country. And whenever possible, confirm your identity before depositing to save yourself future hassles during the withdrawal process.
Established casinos have a brand to protect and more often than not, offer bonuses with reasonable terms. However, these conditions are designed to keep players betting for extended periods and only a lucky few complete them. The only way players can protect themselves is by researching and due diligence. Always read the T&C’s before committing.
The Art of Generating Random Data
When it comes to playing a game involving even the smallest extent of luck, the task of generating random data is crucial. A biased algorithm may not only kill the excitement of players, but cost them their own stake.
Random number generators determine the result of such games. In the gambling sphere, the importance of their fairness is unquestionable.
Hosts should aim to provide their players a transparent and unbiased random number generator.
- Transparency can be achieved by publishing the algorithm used for generating random data. In order to prevent malicious behaviour, algorithmic determinism is necessary. Black box functions (including true random generators) violate these constraints, so they are ineligible for this purpose.
- Bias can be avoided by using random seeds to initialise a so-called pseudo-random number generator (PRNG). Contrary to a true random number generator, PRNGs solely depend on the seed given to them.
- Data generated by PRNGs are verifiable by nature given the seed and the PRNG function itself. Verified casinos only need to compute the PRNG's outputs and compare them with the host-computed results.
Seeding a game
Seed generation shall be distributed amongst players and hosts.
To avoid bias, no entity may know the seed of others during this process.
In most applications, seeds consist of two main parts:
- Host seed: Chosen at first and kept in secret until the end of a particular game.
- Public seed: Chosen by every player of a game. Multiple players may contribute to it by using a commitment scheme. Should be revealed after a commitment to the host seed has been made.
(If multiple players bet against each other, then every participant should also be a host. The aforementioned situation describes the problem of playing a mental poker game.)
Host seeds should be computationally infeasible to break. This can be achieved by making them large and using a reliable source of entropy for their generation (e.g. a true random number generator device). Besides that, using a long period PRNG is recommended.
Multiple betting rounds
Having to choose a new seed before each betting round is inconvenient. A predictable value called a nonce can transform a single public seed to an arbitrarily large set of seeds. A unique nonce should be appended to the public seed before each round.
The Significance of Commitment Schemes
Commitment schemes provide an indispensable building block of provably fair algorithms. They are used for storing information to be revealed later, similarly to how envelopes work.
Historically, letters were sealed to prevent message forgery. Attempting to remove an applied seal from its document would most certainly break it. Recipients could verify the invariability of a message by the presence of an intact seal.
Shifting from traditional letters to digital communication, where the demand for protecting information arose. Cryptographic primitives were established, resulting in the invention of digital signatures and commitment schemes.
A commitment is a message concealing a value chosen by the sender.
Commitments have the following properties in common:
- Hiding: The concealed value can only be known by the sender. (Recipients may verify the validity of a commitment once the sender reveals the chosen value.)
- Binding: Only the sender's chosen value may validate the commitment during the opening phase.
The aforementioned properties grant commitment schemes application in secure coin flipping and multi-party computation (MPC). For example, collision resistant cryptographic hash functions can be used as a commitment function.
In provably fair algorithms, commitment schemes are widely used for computing an unbiased common seed used for generating random numbers.