[nnx]

This "provably fair" concept is quite common in the Bitcoin gaming world.

Not sure who was the first, probably https://satoshidice.com

Bitino.com has a nice page explaining the concept, including an example validation script in Python http://bitino.com/provably-fair-gaming/

[desdiv]

I like to point out that this is only fair in the game theory sense of the word, not the economic sense of the word. There is nothing stopping the operator from waiting until the pot is large enough and then announcing: "Oops, crackers comprised my system and stole all the bitcoins. Sorry, guys. My bad."

In other words, every time you play you're losing to the house, even though the mathematical analysis doesn't show it.

[javert]

I don't think this is right. I assume the odds favor the house anyway. They can make money without scamming anyone.

I assume the game is "fair" in that they decide where to bomb before you place your battleship, and that can be proven.