Established in 2014, BitDice is a profitably operating and presently the largest crowdfunded cryptocurrency casino. It gained and returned over 2300 BTC in profits to its bankroll investors and is now seeking to expand into the new USD 50 billion online casino market, which has not been previously accessible.
Cryptocurrency gambling accounts for roughly 5% of the entire online gambling industry. By bringing in and introducing the “provable fairness” concept that BitDice Casino has been using in all of its games to eliminate a “black box” phenomenon, it expects to get exposure to fiat players and win their trust. Along with integrating fiat betting with a cryptocurrency arm of the business, it will have to go through all the required regulatory procedures to have a solid legal standing. At the same time, it will drastically upgrade its platform and include new types of games and technology to take a leading position in the entire online gambling industry.
BitDice is eager to merge two playing fields under one roof - fiat gamblers and cryptocurrency gamblers - something that nobody dared to implement before.
In the light of this bold and ambitious move, BitDice has been aggressively questioned about how it could differentiate itself from competitors such as DaoCasino, vDice, Etheroll, Edgeless, etc. who have already completed the ICO fundraising.
BitDice does not want to be any single technology centric and, in contrast, provides players with choice to decide what technology and what currency they want to use in their gambling. All BitDice Casino’s competitors are primarily clones of a simple dice game running entirely on a Ethereum smart-contract. While the smart-contracts sound fancy and hi-tech, the games on blockchain come with a long list of limitations, refraining their technology from getting a feasible traction among wider gambling community.
The most cumbersome limitations relate to the speed and the cost of making a wager. Ethereum network impose higher latency speed for validating wager results and on top of that comes a transaction fee a user must pay with each wager. For a low-roller player the transaction fee can exceed the size of the wager, what makes playing with small moneys economically meaningless. BitDice, in turn, runs its games free of charge on the server with publicly observable and provably fair algorithms that include different types of cryptocurrencies and are capable to process up to 20 wagers a client per second.
“Transparency” and “trust” are the key buzzwords used to exaggerate the importance of on-chain gaming solutions. The strong argument in the eye of a layman seems to be in the notion of an absolute “fairness” of such games, but in reality, the Random Number Generation (RNG) algorithm cannot be invoked within the blockchain and is therefore outsourced from a third-party provider, such as Oracalize, which effectively outsources the data from Random.org. The chain of third-party providers potentially puts users at risk of being cheated, because at each layer of data transmission the results can be intruded or/and misplaced for the benefit of a casino owner. There have been hot debates over the weakness of Oracalize when potentially a casino can request an array of numbers but fetch to the end user only the one, which it needs to deliver.
BitDice has developed and successfully implemented the “provably fairness” concept that serves its purpose and eliminates risks of cheating without outreaching any third-party providers. It is a simple and elegant solution, and involves a client-seed component, generated and known only by a user, and a server-seed component to create unhackable random outcome which can be verified immediately after the bet is made, but cannot be known in advance by any party.
Below we illustrate in an-easy-to-understand format, how BitDice stands out in comparison to traditional online and smart-contract casinos:
Yes1 - One should apply a top-skill technical expertise to understand and interpret the code of the smart-contract. Smart-contracts can be easily twisted without being noticed by an average user.
No2 - To accommodate high-roller players the funds shall be readily available and kept in hot wallets (online), which is a very insecure way of holding crypto assets. Last examples - Edgeless and Dao.Casino wallets were drained because of mistakes in the code.
When BitDice Casino hits the new market, its position will get even stronger. We will add various payment methods for cash players and introduce more competitive margins. We are absolutely certain that the provably fair concept will earn us even more trust among new community and send us far ahead of the current crypto competitors.
Content Credit: @bitdiceofficial
Source: https://medium.com/@BitDice/bitdices-stand-in-the-world-of-smart-contract-games-and-blockchain-development-e014fa3d1f7
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