Great explanation! Doesn't this also open the server to potential exploits, though, in that someone else could gain access to the same information?
Yes. If you can discover your server seed you can win the whole bankroll.
You would need to be careful to not make it look too obvious.
This apparently happened not so long ago at Prime Dice, where a player called "Hufflepuff" was able to somehow discover their server seed and then proceeded to win and withdraw some large number (4000?) of Bitcoins. He was careful to hit losing streaks as well as winning ones, but the winning streaks always ended up being bigger. I think the who thing took a few weeks to play out.
Shortly after that another player, called something like RobbingHood won over 100 large bets in a row at 49.5%. I guess this was the same person. He wasn't able to withdraw much of his winnings before the account was banned.
https://bitcointalk.org/index.php?topic=208986.msg9576925#msg9576925http://www.reddit.com/r/Primedice/comments/2mmg69/ahh thats finally explains the magic of that hupplepuff, so is it or is it not againts the rules that if we somehow discover the server seed and use it to win the game?