Gambling is the field where the cost of one mistake can be crucial. For example, recently, a FanDuels player couldn’t claim his $82,000 reward because of what FanDuels say is a software ‘glitch.’
Online-technologies made gambling and betting fairly easy: participants need only to exchange information remotely and then reveal their bets to define the winner.But this easiness opens endless opportunities for manipulation of the outcome of any game. If one side is corrupted or may be corrupted, the results cannot be trusted, and this is the problem blockchain can solve.
With the launch of the CHAOS protocol, we introduce the CHAOS server as a trusted third-party which guarantees that the result is never manipulated. To create and reveal a random number which defines the outcome of the game, we now deploy more complex operations.
Participants have to exchange their random numbers with each other during the first phase of the protocol. All parties sign their random numbers (seeds) which is a proof of the origin and authenticity of the seeds, and they can be aggregated into the shared seed using cryptographically secure functions.
The random number can now be generated from a shared seed using data provided by all three parties – the player, the casino, and CHAOS. The outcome (resulting random number) will be provably fair even if the parties don’t trust to each other.
This result and all the game information is sent to the blockchain where all interested parties can check its accuracy: seeds, signatures, the hash (encrypted data) and outcome. It’s possible to check for the timestamps and make sure this is the right game that took place and all the essential parameters defining the result.
A player can also copy this information and check it with third-party providers to make sure that the hash corresponds with the outcome – in other words, that this result could be obtained from the input information and it wasn’t manipulated by anyone involved.
In the end, all the information about the game will stay on the blockchain and it can be retrieved on demand.
The CHAOS protocol allows users to create and verify random numbers in a fast and convenient way, and check the validity of transactions as well as the outcome. The launch on the EOSIO platform allows it to operate on the fastest and the most popular chain for gaming and gambling with thousands of zero-fee transactions per second, and each of them representing a single roll of a dice or a bet performed simultaneously.
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