THE TRANSFORMATION OF LOTTERY GAMES THROUGH BLOCKCHAIN
As we all know, Lottery is a type of gambling which involves the drawing of specific numbers to win the large prizes. Lotteries are different from any other Gaming product. Lottery players risk a small amount of money against very long odds to win a large prize, with the net proceeds going to the public good.
Statistics shows, the lottery industry keeps a 29% share of the entire global gambling revenue.
Increased from $187.1 billion in 2004 to $284.3 billion in 2014, the global lottery represented an annual growth rate of 4.3% over ten years.
But with the growth of the digital economy, the industry faces challenges like the lack of transparency and fairness. So therefore, the world demands more transparency and fairness with advanced technologies like blockchain.
The distributed nature of blockchain promises innovation in the lottery industry.
To appreciate the innovation of blockchain lottery, we should note some of the Challenges faced by the Lottery Industry before the coming of blockchain technology.
Due to the smaller size of the domestic market, users from different countries cannot get involved in the biggest lotteries in the world. They are restricted to participate in smaller local lotteries.
Though new online solutions enable players to purchase worldwide or US lottery tickets, the service charges and risks of fraud and mismanagement are higher.
As of now, the state and law regulations control the way lotteries are carried out in different corners of the world. On an average, not more than 50% of funds gathered from ticket sales are issued to the prize pool.
It is essential to ensure the integrity of the games to avoid the risks of manipulation or frauds. Lottery players doubt the fairness of lotteries and ask the following questions:
- Are the deal and ticket real or not?
- Is the random number generation (RNG) method secure and random?
- Are the prizes paid on time?
- Is the jackpot winner real?
- Is the money accumulated in one pool and used for social causes?
Since the traditional lotteries fail to answer the above questions, lotteries lack fairness in the system.
- DISTRIBUTION OF FUNDS
Lotteries are served as funding for charity and other social projects. But in many cases where countries have high levels of corruption, players can question the fair distribution of funds.
Since there is no way to get information about the distribution of funds, it could be the biggest challenge for the players to build trust in the specific lottery association.
But since, blockchain is a distributed ledger technology with a secure write-forward authentication system, it can add data without the risk of a single point of failure. Every node involved in the blockchain network has a copy of the ledger. Users can update the information into the ledger without the involvement of a third party. It gives individuals more power and flexibility.
So therefore, Here’s how blockchain has brought enhancement to the lottery industry
- IMPROVE FAIRNESS WITH THE SMART CONTRACTS
A smart contract is a digital agreement between the parties in which computers enforce terms and bring transparency to any transaction. With an online blockchain lottery in place, rules which are legible to all parties can never be altered.
Since no centralized authority is there to govern the game, there will be no concerns related to winnings. The player’s funds can directly go into the contract without the interference of intermediaries.
- PRIVACY AND ACCESSIBILITY
The use of cryptocurrency for gambling has become a popular solution for casinos, either as an alternative to fiat currency or as the primary payment system.
With cryptocurrencies, users can gamble anonymously, without the need to submit copies of the documents.
Also, cryptocurrencies can make online gambling accessible as it offers a low entry barrier to new players and enables them to avoid gambling regulations applied to fiat currency.
As all of the records are stored on the blockchain, players can have a transparent and traceable view of the saved transactions. Due to the traceability offered by the platform, they can reach to the roots of disputes if any occurs in the future.
A perfect example of a software development project implementing blockchain lottery is Lucky Finance, a lottery Game powered by smart contract on blockchain without risks of manual improper operations.
In the Lucky Finance game, the last number of the hash value on the chain is taken, as the winning number at the moment of each round of the game. No one can predict the hash value, and there is no human controllability, so the result cannot be manipulated.
Besides, Lucky Finance is different with any other lottery game, because all its players share a weekly dividends in addition to the chances to win the lottery (the first and second prizes). It’s a decentralized lucky game platform that really creates values. The more $LK tokens you hold, the more dividends you share every week. The more people you invite to the game, the more rewards you get from its DAO system. It’s a simple and profitable game for players to earn by holding.
In a more practical approach, visit http://ly.finance/lkfi now to get started and know more.
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