In order for gambling to work in a fair and transparent way, randomness is absolutely necessary. When it comes to Gambling 3.0 - gambling on the blockchain - DAOBet provides a revolutionary solution for gambling applications, that’s faster and more reliable than its earlier counterparts (i.e live gambling and online gambling).

However, the inherent current problem of randomness in blockchain lies in the decentralization of the system. While earlier generations of gambling rely on centralized sources of randomness to ensure fairness, blockchain’s intrinsic decentralized environment requires a more sophisticated solution to solve this problem.

Luckily, the DAOBet and MixBytes are putting their brains together to devise a comprehensive solution that’s able to handle this. Through building a blockchain, we’ll be implementing an On-Chain Random Beacon based on deterministic threshold BLS signatures for this new era of gambling 3.0

On-Chain Random Beacon Leverages Boneh–Lynn–Shacham

DAOBet’s built-in random number beacon will be based on deterministic threshold Boneh–Lynn–Shacham (BLS) signatures - a provably secure pairing-based signature system backed by Stanford University research.

In order to generate random values, a common message is signed by the block producers, who then generate a composite signature. This signature is treated as a deterministic random number which is produced only after the system receives cryptographical signatures from 2/3 of block producers.

What’s more, it doesn't matter which block producers participated in the random number generation. The resulting random value can be used to generate an unlimited number of random outcomes for games being played at the moment. In this way any user of DAOBet blockchain can be sure that nobody can predict the outcome of the game and no one has the advantage.

This blockchain system devised by DAOBet is revolutionary as it gives developers an independent source of demonstrably fair pseudo-randomness that enables them to prove to players that the outcomes of their games are genuinely random.

The Case for Pseudo-Randomness

DAOBet’s on-chain random beacon is a revolutionary solution that leverages BLS to solve the issues of provably fair randomness, even in game play with more than 2 participants - something not previously possible.

In short, computers can’t generate true randomness. This is because they are slaves to their mathematical instructions or algorithms. The instructions inputted into a computer dictate how the outcome will turn out - meaning that all appearances of randomness are actually predictable.

To combat this, a cryptographic algorithm is applied to the source of entropy (a computer mouse movement for example) to generate the ciphertext. The unpredictability of the resulting ciphertext is guaranteed by the strength of cryptographic primitives used. Because this ciphertext satisfies statistical tests for randomness, it can be used as a random number.

In the case of DAOBet’s random beacon, the aggregate signatures generated by the block producers who sign a common message is used as the random values.

However, while the random values satisfy the statistical tests for randomness, as they are generated by a definitive mathematical process, they’re considered as pseudo-random - as opposed to truly random.

By deploying an on-chain random number beacon using BLS, DAOBet provides publicly verifiable, bias-resistant, unpredictable pseudo-randomness in the DAOBet environment.

This pseudo-randomness in the on-chain random beacon solves the problems associated with computers’ inability to generate randomness as the resulting ciphertexts essentially serve the same purpose and work as effectively as true randomness - enabling provably fair random gameplay.

To Sum Up…

Currently, you’ll be hard-pressed to find a current solution that works as effectively as the one DAOBet is devising to tackle Gambling 3.0. In building a secure and stable blockchain for decentralized gambling applications on top of, we’re able to offer game developers a faster and more reliable route to providing gambling games. However, that’s not all - with our demonstrably provable random number beacons built-in to DAOBet Blockchain we are providing the next generation of gambling which can solve the existing issues of centralized randomness to ensure fairness in gambling like never before.

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