Developing On-Chain RNG Systems for Blockchain

We design and develop full-cycle blockchain solutions: from smart contract architecture to launching DeFi protocols, NFT marketplaces and crypto exchanges. Security audits, tokenomics, integration with existing infrastructure.
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Developing On-Chain RNG Systems for Blockchain
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On-Chain RNG System Development for Blockchain

Using block.timestamp, block.prevrandao, or the previous block hash for random number generation is risky: miners or validators can influence these values. A few years ago, a well-known lottery lost $4M due to block hash manipulation. Random numbers on a blockchain are a non-trivial problem requiring a tailored approach. We develop turnkey RNG systems, assess threats, and propose optimal solutions. Our experience includes more than 50 successful projects in this field.

Why Is On-Chain Randomness Hard?

Blockchain is deterministic. Every node must reach the same outcome by executing the same operations. This fundamentally contradicts randomness: if the result is predictable, it is not random. Any source visible on-chain before the result is committed can be exploited by an attacker.

Validator bias — an Ethereum validator sees block.prevrandao (RANDAO reveal) before publishing the block. If the result is unfavorable, they can skip their slot (slot is skipped, result changes). The attack cost = lost slot reward (~0.01 ETH). If the lottery stake > 0.01 ETH, the attack is rational.

Chainlink VRF: Standard for Most Cases

Chainlink VRF (Verifiable Random Function) is the most battle-tested solution for NFT mints, lotteries, and game mechanics. It works through the oracle network:

  1. The contract requests a random number by sending LINK.
  2. A Chainlink node generates the random number and a cryptographic proof.
  3. The proof is verified on-chain before the number is used.
// VRF V2.5 (current version)
import {VRFConsumerBaseV2Plus} from "@chainlink/contracts/src/v0.8/vrf/dev/VRFConsumerBaseV2Plus.sol";
import {VRFV2PlusClient} from "@chainlink/contracts/src/v0.8/vrf/dev/libraries/VRFV2PlusClient.sol";

contract Lottery is VRFConsumerBaseV2Plus {
    uint256 public s_subscriptionId;
    bytes32 public keyHash; // gas lane
    uint32 public callbackGasLimit = 200_000;
    uint16 public requestConfirmations = 3;
    
    mapping(uint256 => address) public requestToPlayer;
    
    function requestRandomWinner() external returns (uint256 requestId) {
        requestId = s_vrfCoordinator.requestRandomWords(
            VRFV2PlusClient.RandomWordsRequest({
                keyHash: keyHash,
                subId: s_subscriptionId,
                requestConfirmations: requestConfirmations,
                callbackGasLimit: callbackGasLimit,
                numWords: 1,
                extraArgs: VRFV2PlusClient._argsToBytes(
                    VRFV2PlusClient.ExtraArgsV1({nativePayment: false})
                )
            })
        );
        requestToPlayer[requestId] = msg.sender;
    }
    
    function fulfillRandomWords(
        uint256 requestId,
        uint256[] calldata randomWords
    ) internal override {
        address player = requestToPlayer[requestId];
        uint256 result = randomWords[0] % totalTickets;
        _declareWinner(player, result);
    }
}

requestConfirmations: 3 — wait for 3 block confirmations before generating. This complicates reorg attacks on the request.

VRF Limitations: latency 1-3 blocks (15-45 seconds on mainnet), LINK cost per request (0.25-2 LINK depending on network), and subscription management overhead. For high-frequency gameplays (each move in a game requires randomness), it is too expensive and slow.

Commit-Reveal: Randomness Without an Oracle

For cases without access to Chainlink or to minimize costs, use a commit-reveal scheme:

Weakness of commit-reveal: the last person to reveal sees the final result before publishing. They may choose not to reveal (griefing) or reveal only if the result is favorable. Mitigation: a penalty for not revealing (a bond deposited at commit that is burned if the reveal is missed).

Example implementation with bonds
mapping(address => bytes32) public commits;
mapping(address => uint256) public bonds;
uint256 public bondAmount = 0.1 ether;

function commit(bytes32 commitment) external payable {
    require(msg.value == bondAmount);
    commits[msg.sender] = commitment;
    bonds[msg.sender] = msg.value;
}

function reveal(uint256 secret) external {
    require(keccak256(abi.encode(secret, msg.sender)) == commits[msg.sender]);
    // process secret
    payable(msg.sender).transfer(bonds[msg.sender]); // return bond
    delete bonds[msg.sender];
}

function claimBond(address participant) external {
    require(bonds[participant] > 0);
    // check that participant did not reveal in time
    // transfer bond to caller
}

RANDAO: Native Ethereum Randomness After PoS Transition

After Ethereum transitioned to Proof of Stake, block.prevrandao provides the aggregated RANDAO reveal from validators. This is better than the old block.difficulty, but has the validator bias issue described above.

For non-critical use cases (cosmetic in games, queue ordering, small lotteries), block.prevrandao is sufficient and free:

uint256 random = uint256(keccak256(abi.encode(
    block.prevrandao,
    block.timestamp,
    msg.sender,
    nonce++
)));

Adding msg.sender and nonce increases entropy and makes prediction harder for a specific user, though it does not eliminate validator bias.

How to Choose the Right RNG Method?

Use Case Stake / Value Recommendation
NFT mint (whitelist randomization) High Chainlink VRF
Lottery with large prize High Chainlink VRF + requestConfirmations: 5+
In-game randomness (items) Medium Commit-reveal or Chainlink VRF
Queue ordering Low block.prevrandao
PvP matchmaking Low block.prevrandao + nonce

Comparison of Methods

Method Security Speed Cost Complexity
Chainlink VRF High 1-3 blocks 0.25-2 LINK per request Medium
Commit-reveal Medium (depends on mechanics) 2+ rounds Only gas High
RANDAO Low (validator bias) 0 blocks Free Low
Hybrid (off-chain + on-chain) High 0 blocks Combination High

Hybrid Solutions

For GameFi projects requiring fast randomness with high throughput, we use an off-chain VRF with on-chain commitment:

  1. Backend generates a seed via Chainlink VRF in advance.
  2. The hash of the seed is published on-chain (commitment).
  3. For each game event, use HMAC(seed, event_id) as randomness.
  4. After the session, reveal the seed; users can verify all results.

This provides instant response for each action and full verifiability post-factum. A hybrid solution saves up to 90% in gas fees compared to direct VRF requests, and at high frequency use, it is 5-10 times cheaper.

What You Get

  • Threat analysis and selection of the optimal scheme.
  • Integrated smart contract with unit test coverage (200+ tests).
  • Deployment and usage documentation.
  • Support during deployment and monitoring.
  • Team training (optional).

We guarantee transparency — all solutions are verifiable on-chain. Contact us to evaluate your project.

Work Process

Analysis. Determine the threat model: who can attack? What is the maximum profit from manipulation? What latency is acceptable? Is Chainlink available on the target chain?

Development and Testing. VRFConsumer is tested using VRFCoordinatorV2_5Mock from the Chainlink package, allowing fulfillment simulation in unit tests without the real oracle network. Commit-reveal is tested against griefing and last-revealer attacks.

Deployment. For Chainlink VRF, create a subscription, fund LINK, add the consumer. Set up monitoring of the subscription balance.

Time Estimates

Integration of Chainlink VRF into an existing contract: 1-2 days. RNG system with commit-reveal and anti-griefing: 1-2 days. Hybrid off-chain VRF with on-chain commitment and verification: 3-5 days.

Get a consultation — we will evaluate your project and propose the optimal turnkey solution.

Smart Contract Development

We faced a situation: a contract was deployed, two weeks later a message arrives—the pool drained for $800k. Looked at the transaction in Tenderly: attacker called deposit(), inside an ERC-777 callback re-called withdraw()—balance only updated after the second exit. Classic reentrancy, but not via ETH transfer—through an ERC-777 hook. ReentrancyGuard was only on withdraw().

Such cases are not rare. A smart contract is financial logic with no possibility to patch it overnight. Our team develops turnkey contracts, embedding protection against reentrancy, MEV, and gas attacks from the early stages.

How We Develop Smart Contracts Turnkey

We start with business logic audit and stack selection. Solidity 0.8.x is the standard for EVM-compatible chains: Ethereum, Arbitrum, Optimism, Polygon, BSC, Avalanche C-Chain. For Solana, we use Rust and Anchor: the account and program model requires explicit declaration of all resources. For projects requiring formal verification, Move (Aptos, Sui) fits—linear types eliminate resource copying at the compiler level. Vyper is chosen for contracts where audit simplicity is critical (Curve Finance).

Language Execution Model Typical Domain Risks
Solidity 0.8.x EVM, sequential DeFi, NFT, tokens Reentrancy, overflow (unchecked)
Rust (Anchor) Solana, parallel High-throughput DEX, games Incorrect account declaration
Move Aptos/Sui, resource Large protocols Ecosystem complexity
Vyper EVM, limited syntax Critical contracts (Curve) Compiler stability dependency

Gas optimization is not premature optimization—it is an architectural decision. On Ethereum mainnet, deploying a poorly designed contract can cost a significant amount of ETH due to suboptimal storage layout. Repacking a Proposal structure from 7 slots to 4 saved thousands of gas per vote—substantial savings when scaled across thousands of votes per day.

Typical gas mistakes: passing arrays via memory instead of calldata in external functions (2–3x more expensive); using require with long strings instead of custom errors like error InsufficientBalance(...). Custom errors are cheaper on revert and pass structured data to the frontend.

Why Smart Contract Audit Is Critical for Security

Audit is not a one-time check—it is a built-in development stage. We use three levels:

  1. Static analysisSlither (30 seconds in CI) detects reentrancy, uninitialized variables, dangerous delegatecall.
  2. Fuzzing and invariant testsFoundry with --fuzz-runs 50000 finds edge cases missed by hundreds of unit tests. Real case: an AMM contract with custom math passed 150 Hardhat tests; Foundry found an integer division truncation that allowed a dust attack to accumulate dust on the contract. Echidna checks invariants ("sum of all balances ≤ totalSupply").
  3. Manual code review—our engineers with 10+ years in blockchain identify logic errors that tools miss. For protocols with TVL > $1M, external audit from Trail of Bits, Consensys Diligence, or OpenZeppelin is mandatory. Timeline: 2–4 weeks.

Any upgradeable protocol must have a timelock. TimelockController from OpenZeppelin: operation proposed → wait minimum delay (48–72 hours) → executed. Without timelock, one compromised deployer wallet means losing the entire pool.

What Upgrade Patterns Do We Choose?

Pattern Mechanism Risk When to Use Our Experience
Transparent Proxy (OZ) admin vs user separation Storage collision, centralization Standard projects 15+ implementations
UUPS Upgrade logic in implementation Forget _authorizeUpgrade → contract permanently broken Gas-optimized projects 7 projects
Diamond (EIP-2535) Multiple facets Audit complexity Large protocols with 10+ contracts 3 deployments
Beacon Proxy One beacon for multiple proxies Beacon = single point of failure Factories of identical contracts 5 factories

Storage collision is the main danger of proxies. Implementation v2 must not add variables before existing ones. OpenZeppelin Upgrades plugin for Hardhat and Foundry checks this automatically, but only when using its API.

How to Protect a Contract from MEV and Front-Running

On Ethereum mainnet, transactions in the mempool are visible to all. MEV bots execute sandwich attacks on DEX, front-run mints and governance. Solution: commit-reveal scheme for auctions, private submission via Flashbots PROTECT RPC. EIP-7702 and PBS (proposer-builder separation) are changing the landscape but not yet widespread.

What Is the Development Process?

  1. Analysis—functional specification, call diagram, edge case analysis. Without this, coding starts in vain.
  2. Development—Solidity/Rust with tests in parallel. Test → code → refactoring. Use Foundry for fuzz and invariant tests.
  3. Internal audit—Slither + Echidna + manual code review. Foundry invariant tests for protocol invariants.
  4. External audit—for projects with real money. Timeline: 2–4 weeks.
  5. Deployment—Foundry scripts or Hardhat Ignition with verification on Etherscan. Gnosis Safe for ownership transfer immediately after deployment.
  6. Monitoring—Tenderly alerts, OpenZeppelin Defender, Forta Network.

What Is Included

  • Architecture documentation and contract specification (NatSpec).
  • Source code with repository and CI (Slither, Foundry, coverage).
  • Deployed contract with verification on blockchain explorer.
  • Audit results (internal and external upon request).
  • Access to monitoring and management (Gnosis Safe).
  • Code warranty: critical bug fixes within one month after deployment.
  • Consultation on web integration (wagmi, RainbowKit).

Estimated Timelines

  • ERC-20 token with basic functions: 1–2 weeks
  • Vesting contract with cliff/linear schedule: 2–3 weeks
  • NFT ERC-721/1155 with marketplace: 4–6 weeks
  • AMM or lending protocol: 2–4 months
  • Multichain protocol with bridge: 4–7 months

Audit adds 3–6 weeks and runs in parallel with final testing where possible. Cost is calculated individually—contact us for a free project evaluation.

Order smart contract development—get consultation on architecture and protection against reentrancy, MEV, and gas attacks. Want to discuss details? Write to us—we will select the optimal stack for your task.