WHAT IS BLOCKCHAIN?
There is a way not to double spend your money in the standard financial system. The bank will not allow your money to be spent twice. But if we have a decentralized system with no central institution, there must be a way to protect you against manipulation or double spending. The solution was born in October 2008, and together with Bitcoin, the decentralized network called blockchain had been introduced.
Blockchain is a decentralized community’s complete and unchangeable transaction history without a single point of failure which nobody can censor, hack or shut it down. The blockchain technology provides an infrastructure for digital currency to exist without the central bank. But this technology can also be used as a storage for any type of consensus without any governing body and can be applied to any kind of ownership, identification, knowledge or currency.
Cryptocurrencies are the one association people have to blockchain; however, whole other associations that people do not really have which is the chain to industries. This is where the magic happens because blockchain can revolutionize real estate, gaming, lottery, entertainment, accounting, logistic, manufacturing, etc.
LOTTERY UPGRADE WITH BLOCKCHAIN
Blockchain technology is gradually creeping into every industry, and in the coming years, its presence will be felt like never before. One of the industries that this technology is expected to connect with to a deeper level is the gambling and lottery industry.
Let’s explore how Blockchain will disrupt the gambling industry:
1. TRANSPARENCY AND TRUST
Moving away from a centralized ledger system allows for greater transparency. Current lotteries and gaming systems typically use only a single server and keep parameters, such as their random number generator, a closely guarded secret. It’s this secrecy and lack of transparency that opens the lottery to potential fraud and makes it less tempting to consumers.
A decentralized lottery that operates on the blockchain allows for full transparency. Smart, self-executing contracts can be built into the transaction from day one, ensuring that participants understand how their money is being pooled, how the number draw is being randomized, and how privacy is upheld.
Many lottery scandals have been known to happen which should stop now with the blockchain inclusion.
2. REDUCE FRAUD
Online fraud causes account for significant loses in the gambling industry. Some “smart” users can hack the lottery system through the servers’ back door.
Blockchain technology solves this problem by providing secure ways of transactions. Blockchain’s distributed ledger makes it an impossible task to manipulate or hack anything in the system. Your winnings are automatically calculated and sent you. Thanks to smart contracts.
3. PAYING WITH CRYPTOCURRENCY
The other obvious thing that Blockchain has brought on board is the use of cryptocurrency as an alternative payment method.
Accepting cryptocurrency creates an opportunity for players to venture way beyond their regulatory jurisdictions since crypto is not dependent on regulated payment services and it will significantly reduce costs associated with withdrawals and deposits.
LOTEO Team plans to implement its utility token LOTEU also as full payment options for the lottery.
4. ANONYMITY
Privacy concerns that plague the traditional lottery industry can be solved using the blockchain format. Even though all transactions are recorded publicly on the blockchain, users are only identified by wallet address — not as names, not as their hometowns.
The use of a valid, unchangeable transaction ledger serving as a permanent record of transactions will allow participants to keep track of exactly how many players exist when the pool is ending, and what percentage of the pool the organizers keep for themselves. This anonymity feature ensures that users never have to share personal information when conducting transactions. Such a feature also hinders hackers from accessing users’ data.
5. TOKEN HOLDER
Blockchain enables gambling platforms to develop their tokens that can be used as currency on the platform as we have also mentioned above in the case of LOTEU token.
Besides the currency, the LOTEO users can also become “investors” under some conditions explained in this article.
6. INCREASE ACCESSIBILITY
Unlike state lotteries and their various barriers to access, blockchain lotteries allow anyone anywhere in the world to play and easily collect their winnings, while keeping the privacy many deem essential for financial transactions. All you need is an excellent internet connection.
7. COST EFFECTIVE
Since Blockchain is automated to do functions that were previously done by human beings, it will significantly reduce fees and charges associated with transactions, administration costs and therefore enable consumers to maximize profits.
One of the lotteries, betting, and casino industry’s most significant challenges for appealing to players is to cut the cost of the middleman.
According to CNN Money, $6 billion from lottery funds go to the retailers selling the tickets. And another $6 billion goes toward the administrative costs associated with running the lottery. Then the state takes its cut. When all is said and done, only 63% of the pooled money is left for the players — and of course, they need to pay taxes on their winnings.
Just to remind you the LOTEO distributes 75 % of the prizes for the players.
Players have grown up aware of the adage “the house always wins” and have fair reason to avoid lotteries, casinos, and any betting institution where the odds of winning haven’t been made clear.
As you can see, there are many points about how the blockchain can disrupt this industry. The LOTEO team is striving to make long term and stable platform building on the pillars mentioned above.
The futures of the betting, gambling, gaming, and lottery industries are set to converge. This is one of the most promising sectors. However, gamblers are subject to regulatory restrictions and exposed to fraud and dishonesty from other players as well as disreputable operators. Nevertheless, there is hope. As you can see in this post, Blockchain technology has a huge potential to revolutionize this industry for players, operators as well as regulators.
The LOTEO project is going to have a massive contribution to this revolution.
Do not forget to stay tuned for the next articles to be published since the launch is coming!
We hope you will enjoy our lottery.
For more questions do not hesitate to contact us as mentioned below or read the official whitepaper.
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