As the EdgeFund team develop the platform, we find ourselves being asked a variety of questions. Here I have answered a few commonly asked general questions, and given two examples of the platform in use.

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For a general overview of the EdgeFund platform see this article. The full white paper can be found at our website.

Any further questions please get in touch!

By Colin McCrae

1. How can game operators profit on every bet, even losing ones?

Game operators will pass through bets from their users to the EdgeFund bankroll smart contract. The type of bets will depend on the game format, but there will be three fundamental parameters passed on:

The smart contract will determine the outcome of the bet by decentralized random number generation.

In the case of a winning bet, it will return…

How is it possible to create an ‘account’ on decentralized networks like Bitcoin or Ethereum where no single person or organization maintains a central registry of users?

You may have heard that blockchain based cryptocurrencies like Bitcoin are decentralized, with no central authority in control. How then is it possible to create an ‘account’ on such a network where no single person or organization maintains a central registry of users?

“Banking was conceived in iniquity and born in sin.” — Josiah Stamp

By Colin McCrae

The answer to this question is fundamental to how blockchains allow users to interact with them.

For the purposes of this article, I will run through how Bitcoin ‘accounts’ are created. However, the principles are similar across all blockchains.

Bitcoin is fundamentally…

All you need to know about generating a master password

“One password to rule them all”

By Colin McCrae

It has become standard advice for online users to have strong, unique passwords for all their online accounts. Not without reason: a data breach at one company with a poorly protected user database leads to attackers having huge lists of email addresses and associated passwords some of which will work on other companies’ websites.

With many users now having signed up to over one hundred accounts requiring password login, following this advice would necessitate memorizing an impossible number of different passwords.

A potential solution to this problem is to have one…

“A decentralized ‘smart contract’-based platform pricing provably fair fixed odds bets at the minimum possible edge, returning profits to token holders through deflation.”

By Colin McCrae

EdgeFund proposes the creation of an entirely decentralized bankroll of blockchain tokens, accessible solely via betting functions written in smart contract code which would allow fixed odds bets to be accepted and paid out without the need for any trusted central authority. The bankroll could be used by game operators who want to offer large payouts without risking their own funds. The smart contract code would protect its bankroll of tokens from bankruptcy by…

The new LastPass identity system can also be used to separate online accounts by security level. This is particularly important for cryptocurrency users who can be exposed to unique attack vectors.

By Colin McCrae

The importance of online security has increased continuously since the invention of the internet, and shows all the signs of becoming an even higher profile issue in the future.

In the early days of the internet, the most important online account that most people had was an email address provider. Access to this account could be used to reset other online account passwords, compromise personal communications, and spread computer viruses.

As the internet developed, online banking and general finance became common, and there was a social media explosion. The stakes involved in a personal online security breach…

We have established that any smart contract offering fixed odds bets on the blockchain, must charge an edge. The edge charged can be very small, but it is not possible to sustain zero edge in the long term. If zero edge bets are offered, there will either be a risk of ruin for the bankroll, or tokens of an infinite supply are required. Since the source code for smart contracts is publicly available and can be easily copied and modified, there will be a race to offer the lowest possible house edge.

This is a race that EdgeFund plans to…

By Colin McCrae

Gambling on the blockchain has been one of the early success stories of decentralized smart contracts on the blockchain. The immutable and provably fair properties of smart contracts make the blockchain a natural home for unstoppable code which can facilitate fixed odds betting games.

Smart contracts on the blockchain are developing and advancing at a breathtaking speed. Much of the reason for this is that in order for these contracts to be provably fair, the developers must release their source code to the public. …

By Colin McCrae

Gambling has quickly found itself as one of the most popular uses for smart contracts on the blockchain. Simple contracts can be created which pay out winnings based on provably fair rules. The open source code means that these rules are visible for all to see, and so users can be assured they are playing a fair game. Once deployed, the contracts are immutable, fully decentralized, and cannot be shut down.

One of the earliest examples of blockchain gambling was SatoshiDICE on the Bitcoin network. First launched in 2012, SatoshiDICE allowed anyone to send transactions to their…

The advent of provably fair gambling on the blockchain has the potential to be a paradigm shift for the whole gambling industry. What started with simple dice games has already grown to include Roulette, Blackjack, and many others. While this brave new world undoubtedly offers a great opportunity for enterprising would be casino operators, there are a few fundamentals of gambling that cannot be ignored. In this post, I will discuss a very important one — why the house must have an edge.

By Colin McCrae

It can be demonstrated that anyone with a finite bankroll offering unlimited zero edge…

The guy who invented poker was bright, but the guy who invented the chip was a genius

Julius “Big Julie” Weintraub (1919–97)

By Colin McCrae

Satoshi Nakamoto mined the first bitcoins in January of 2009, and set about a blockchain revolution that surely even he could not have predicted. Four years later, Vitalik Buterin described Ethereum, and upped the ante again, delivering the possibility of unstoppable smart contracts, distributed applications, and decentralized organizations.

Ethereum offers developers the possibility to create paradigm shifting applications across many different industries, technologies, and even systems of governance.

We are developing an open-source, public, blockchain-based…

Colin McCrae

Blockchain Analyst, Ethereum Developer, Process Engineer and Co-Founder of

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