03 Aug '13, 2pm

The Bitcoin Gambling Diaspora (good current overview) from @BitcoinMagazine

The most interesting rating of all is “considered mathematically honest” – in other words, provably fair. Provable fairness is an innovation in the Bitcoin gambling industry which basically means that sites publicly release their algorithms as well as cryptographic commitments to the secret data used to power the random number generators determining which bets win and which bets lose. This ensures that if the site attempts to cheat, the fact will become obvious at the end of the day when the site is expected to reveal the secret data for the day. If the site cheated on any single bet, users can independently verify the outcome of the bet by running the random number generator with the no longer secret data themselves and notice the discrepancy, and if the site tries to change the underlying secret data after the fact the cryptographic commitment will reveal this as well. T...

Full article: http://bitcoinmagazine.com/the-bitcoin-gambling-diaspora/...

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