Satoshi Dice – the first Bitcoin casino ever
Every story has its own beginning. So does the online Bitcoin gambling. SatoshiDice.com is recognized as the first online Bitcoin dice game. This site was created in 2012 by Erik Voorhees. Eventually the site had been sold for $11.5 million to an unknown person and it still functions to the present day.
The site itself is a dice game. Player sends BTC to a certain address that counts as a bet. After that he picks the number and wins if the number picked is bigger than the number generated by the service. The site generates the number between 0 and 65,535 using the method similar to the method of a random number generator.
Unlike Bitcoin gaming sites you’re not required to have the access to the site or use any additional software to play at Satoshi Dice. The player sends his wager making a transaction to the specific static address. After the transaction is made the service makes all the required operations determining the win or loss and makes a reverse transaction with the player’s payout in case he wins or returns a small part to the player. This payment mechanics really became the test for the whole Bitcoin system. Once emerged Satoshi Dice managed to influence the total number of Blockchain transactions really skyrocketing them. It made more and more people want to buy Bitcoin, which in its turn dramatically raised Bitcoin price.
One more important feature introduced by Satoshi Dice is that the system is provably fair which means it is possible to prove cryptographically that the process of wagering hasn’t been somehow changed by anybody and is completely random. The whole system is based on hash use. The service takes the hash combination of your wager transaction and performs a 512-bit SHA2 hash for that transaction hash using a secret unknown to the player. The first four bytes of that hash become the ‘lucky number’ and determine whether you won or lost.
Despite the time passed since the site emerged and despite it has been sold to a new owner the site still remains the most popular Bitcoin gaming site. And of course it can be considered the cornerstone of Bitcoin online gambling. This is the place where it all started.