The role of Verifiable Random Functions (VRFs) in enhancing the fairness of online gaming and gambling platforms.

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In the rapidly evolving landscape of online gaming and gambling, ensuring fairness and transparency is of utmost importance. Verifiable Random Functions (VRFs) have emerged as a groundbreaking technology that addresses the inherent challenges associated with random number generation in these platforms. This article explores the role of VRFs in revolutionizing online gaming and gambling by enhancing fairness, transparency, and security.

What are Verifiable Random Functions (VRFs)?

A verifiable random function is a type of cryptographic function that computes a set of inputs into a pseudorandom output and provides verifiable evidence of authenticity. A public/private key pair (sometimes referred to as a verification key and secret key) and a seed are frequently used as inputs for a VRF. A seed is chosen, and a public/private key pair is produced. These inputs are sent to the VRF, which generates a random number using the private key and the seed. Based on that, the VRF then generates a random number and proof. Importantly, the creation of a proof makes the function verifiable while maintaining the number's randomness by keeping the secret key hidden. Mathematically explained, given the input x, the holder of the secret key SK can determine (y,y)= FSK(x) where y is the pseudorandom output and is the proof of y. Anyone can verify that the value of y was indeed computed correctly by using the proof and the public key PK, but this information cannot be used to find the secret key SK by this formula PK= GSK

To learn more about VRFs and their applications to the blockchain industry, we recommend you to check out our article on the topic: Verifiable Random Function (VRF) & Applications in Blockchain - Orochi Network.

Why Do Online Gaming and Gambling Need VRFs?

The online gaming and gambling industry has witnessed exponential growth in recent years, attracting millions of players from around the world. However, this growth has also brought forth concerns regarding the fairness and trustworthiness of these platforms. This is where Verifiable Random Functions (VRFs) step in to address these pressing issues.

Eliminating Centralization and Bias:

Traditional online gaming and gambling platforms often rely on centralized servers or third-party providers for random number generation. This centralized approach raises concerns about potential bias, manipulation, or insider interference, undermining the integrity of the games. By incorporating VRFs, platforms can eliminate the need for centralized authorities and ensure a decentralized and transparent random number generation process.

Ensuring Fairness and Player Confidence:

Fairness is the cornerstone of the gaming and gambling industry. Players expect equal opportunities and unbiased outcomes in their gaming experiences. VRFs offer a verifiable and tamper-proof method for generating random numbers, guaranteeing fairness. By leveraging VRFs, online platforms can build trust and instill confidence in their players, creating a level playing field for everyone involved.

Enhancing Security and Trust:

Security is paramount in online gaming and gambling platforms, especially when real-world assets and transactions are involved. VRFs utilize cryptographic algorithms that make it virtually impossible to manipulate the generated random numbers. This robust security infrastructure ensures that players can participate in games and gambling activities without worrying about the integrity of the system. It also protects the platforms themselves from potential attacks or fraudulent activities.

How VRFs are Revolutionizing Online Gaming and Gambling

a. Enhanced Fairness and Transparency:

VRFs introduce a new level of fairness to online gaming and gambling platforms. The random number generation process is immune to manipulation, ensuring that outcomes are not influenced or biased. With VRFs, players can trust that the results are truly random, promoting a fair and unbiased gaming experience.

b. Avoid Manipulation:

In traditional systems, centralized entities or malicious actors could potentially manipulate the random number generation process to their advantage. VRFs eliminate this vulnerability by utilizing cryptographic algorithms that make manipulation computationally infeasible. This significantly enhances the security and trustworthiness of online gaming and gambling platforms.

c. Verifiability and External Audit:

One of the key advantages of VRFs is their verifiability. The output value and proof generated by VRFs can be publicly verified by any third party, such as regulators or auditors. This enables independent audits to ensure the integrity of the random number generation process. The transparency provided by VRFs instills confidence in players and regulators alike, establishing trust in the platform.

d. Building Trust for Success:

Trust is a critical factor for the success of online gaming and gambling platforms. By implementing VRFs, platforms can foster an environment where participants have confidence in the fairness of the games or gambling events. This trust leads to increased user engagement, attracting more players and creating a thriving ecosystem.

Recent events have shown that VRFs are becoming increasingly popular in online gaming and gambling platforms. According to a report by ResearchAndMarkets.com, the global online gambling market is expected to grow at a CAGR of 11.5% from 2021-2026. With such growth expected in the industry, it’s important for online gaming and gambling platforms to implement technologies like VRFs that promote fairness, security, and trust.

Case Study: Orand

Orand is a verifiable random function based on elliptic curves (ECVRF) that generates unpredictable and tamper-proof random numbers using advanced cryptographic algorithms. The ECVRF as a service of Orand is distributed across a network of nodes, making it difficult to manipulate or tamper with. Orand provides maximum security, fairness, and transparency, making it an ideal solution for dApps that require impartial and trustworthy sources of randomness. As a system library of UnityOS (Orochi Computation Layer), Orand can provide randomness for all dApps on Orochi Network’s zkWASM and smart contracts on supported Layer-1 chains.

ECVRF works by combining a secret key and a publicly known input to generate a random function output. The output is then combined with the input and a publicly known nonce to produce a verifiable output. The verifiable output can be verified by anyone using the corresponding public key.

Orand can't be considered completely DeFi yet, but it's an extremely important segment and contributes a lot in this field, so we would like to take this example as well.

Orand’s use of ECVRFs can ensure that the selection process is fair and unbiased. The use of ECVRFs also ensures that the selection process is transparent and verifiable. This is important because it helps to prevent manipulation and collusion by malicious actors.

Orand ECVRF can protect users against exploits, developers need a way to create randomness that is verifiable and tamper-proof from miners and rerolling users. What is required is randomness sourced off-chain from an oracle. However, many oracles that offer the ability to source randomness have no way to actually prove that the number they deliver was indeed generated randomly (manipulated randomness just looks like normal randomness, you can’t tell the difference). Developers need to be able to source randomness off-chain while also having a way to definitively and cryptographically prove that the randomness has not been manipulated.

Conclusion

Verifiable Random Functions (VRFs) are transforming the landscape of online gaming and gambling by addressing the challenges associated with random number generation. VRFs offer enhanced fairness, transparency, and security, making them crucial for the industry's continued growth and success.

By incorporating VRFs, online platforms can eliminate centralized authorities, ensuring decentralized and transparent random number generation. This eliminates concerns about bias, manipulation, and insider interference, thereby upholding the integrity of the games. VRFs guarantee fairness and equal opportunities for players, instilling confidence and trust in the platform.

About Orochi Network

Orochi Network is a cutting-edge zkOS (An operating system based on zero-knowledge proof) designed to tackle the challenges of computation limitation, data correctness, and data availability in the Web3 industry. With the well-rounded solutions for Web3 Applications, Orochi Network omits the current performance-related barriers and makes ways for more comprehensive dApps hence, becoming the backbone of Web3's infrastructure landscape.