Dao.Casino, the creators of an Ethereum-based protocol for the online gambling industry, has achieved equally unpredictable randomness in their system, which is necessary, still challenging, for fair gambling.
“Obtaining randomness necessary for gambling games in a deterministic virtual machine is not a trivial task, so in addition to technically obtaining pseudorandom values, an economic incentive layer should also be introduced. Equally unpredictable random numbers that determine outcomes in each game are provided by economically incentivized participants interacting with the pseudorandom number generation (PRNG) contract,” Dao.Casino Founder and CEO, Ilya Tarutov, explains.
Dao.Casino is exploring effective pseudorandom number generation methods despite the hurdle of Ethereum’s deterministic system. The primary goal of the protocol is to bring increased transparency and fairness to the online gambling industry. Ethereum seems to be the best network to use to accomplish this goal.
The technique is called pseudorandom number generation as far as randomness is based on a mathematical algorithm, called pseudorandomness, yet pseudorandomness can be sophisticated enough. Meanwhile, true randomness is called “TRNG” and is derived from a naturally occurring physical phenomenon such as radioactive decay of isotopes, static in the airwaves, and the waves of the sea.
Dao.Casino’s team has been developing and testing existing PRNG methods on Ethereum for the last year. While researching the technique, Dao.Casino’s team faced the challenge of developing PRNG methods on Ethereum, as the system of smart contracts depends on deterministic processing (as any Ethereum-powered system), and determinism and randomness are opposing forces. It is difficult to prove that the number is random, even if the developer claims it is, without revealing the algorithm itself.
Dao.Casino has recently released a white paper that depicts the primary requirements for PRNG methods. The system of smart contracts rewards contributions with BET-protocol token, Dao.Casino’s in-game currency, to encourage developers to provide PRNGs that must be decentralized and fast.
Dao.Casino has already implemented methods that provide equally unpredictable pseudorandom values in seconds for two-party games and the team is currently developing a method that will work for multiplayer games.
“Smart-contract powered gambling games are gaining traction, and we believe that gambling-related use cases for Ethereum can be developed beyond a few experimental provably fair games, into a sustainable ecosystem – a backbone that caters for all aspects of gambling industry,” says Ilya Tarutov.