Blockchain revolution re-defined not only our comprehension of the banking sector but its step by step clearer that its core idea of decentralization (of power in general) has gained popularity among plenty of people around the world and throughout many industries including lotteries and gambling. YOUnited platform with its truly fair and decentralized ecosystem now comes to disrupt even this sector.
What decentralization really means
The core idea of blockchain is to record and store anything which is valuable in a way that no central authority could apply its control over such assets. Ten years ago, Satoshi Nakamoto provided technology supporting this idea in the form of the first electronic peer-to-peer cash system to avoid centralized and poorly controlled banking system. Although people are owners of their assets of any kind, they have very limited access to them. Bitcoin blockchain was a real revolution challenging the traditional way of comprehending the banking system. Since then several other consensus protocols were developed and hundreds of projects grew upon them, not excepting the gambling industry.
Gambling as a truly human activity
Gambling has actually very old roots reaching the ancient times. People were lured by the chance to win or beat their mates or enemies. Even though the history of gambling is not the proper subject matter of this paper, it reveals that some kind of betting or gambling is part of human nature. People believe in good fortune or gamble just for fun and pleasure. With the first house models emerging in post-Renaissance Italy (in Venice) a chosen few came to realize its business potentiality. By the 19th century, we can speak of forming of an industry supported by the first electronic devices employing sophisticated math algorithms. Those devices were invented with the only intention — to help their owner beat all human challengers.
Why zero house edge?
It is very probable that you have heard the phrase “House always wins”. What the hell does that mean?! It’s very simple: the casino always wins in the long run and has a mathematical advantage in every game. This built-in advantage is called house edge and it describes the average casino profit from a player bet in a longer run. Every game has its house edge no matter whether you play online or in a conventional casino. The house edge can be calculated for different table games such as poker, blackjack, roulette and for slot machines as well.
The house edge thus tells how much of the money bet on a certain casino game will “earn” casino over a particular period of time. It can be used as a tool to find out which game offers the best value and is thereby the most profitable.
The casino does not have to cheat or beat every player every time. The house only needs a slight built-in advantage. For example, if the house edge of some particular game is 5%, it means that for every dollar bet, the casino keeps 5 cents and returns 95 cents to the players as winnings in a long run. House edge tells the average estimation for a certain game and does not rule out the possibility of hitting the jackpot occasionally. If players gamble one million dollars in roulette, the casino keeps $50,000 as a profit. The more they play the higher yield is expected that the house will gain. However, the YOUnited platform with its radically different philosophy challenging the mindset of the industry avoids traditional casino mentality and provides a platform with zero house edge for any of its game portfolio.
Truly fair gambling
House edge and similar algorithms have contributed to ill fame of gambling and contaminated the industry reaching its peak in the era of digitalization. Fortunately, the same digitalization has enabled inventors like Nakamoto to disrupt cumulated sophistication leading to addiction and “misfortune”. Cutting-edge technologies like blockchain and smart contracts based on them, radically question the role of any central authority including a house. Online gambling market was inundated by blockchain projects promising fairness, transparency, and openness.
However, there is a lottery and gambling ecosystem that applies truly fair principles with no compromises. YOUnited betting and gaming platform is going to revolutionize the industry through its fair principles and native protocol based on delegated proof of stake. This technology enables smart contracts making the role of house worthless. As players “YOUnited” on this platform, always bet and play against each other, any house or third-party interaction is excluded. The whole prize pool is thus handed in to the winner(s) meaning that return to player equals 100%. To top it all, payments are carried out instantly.
How it works
YOUnited is an open platform for players where casinos have no role. Players themselves are in charge of the game and as such it is their responsibility to generate a fair random number for each game. UNTD blockchain relies on its unique algorithm that generates provably fair random number in a collaborative process where all players are involved. In order to maintain fairness even under the most extreme conditions when some players try to cheat others by sophisticated and targeted manipulation of the random number generation process, UNTD enforces a two-round system which prevents malicious players from changing their contributions to the random number generation process once others have already submitted their contributions. This algorithm guarantees fairness even if a group of malicious players joins forces in order to gain a statistical edge over honest players. As long as there is at least one honest player in the whole game, the game cannot be rigged and the honest player will always have their fair chance of winning the game, no matter how hard the cheaters try. It’s also worth mentioning that there are no casinos that would be able to rig the game themselves and fool all the players in the game.
While there are various blockchain solutions of gaming/gambling platforms, no one uses truly fair principles in a maximum way to provide environment freed of traditional and nontransparent house mentality as YOUnited does.