The guy who invented poker was bright, but the guy who invented the chip was a genius
Julius “Big Julie” Weintraub (1919–97)
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 platform: EdgeFund. With the EdgeFund platform, we aim to use the Ethereum network to bring a paradigm shift to fixed price betting games.
- We will create a shared bankroll, and allow licensed game operators to build games on our platform and offer very large payouts using the shared bankroll.
- We will make it possible for game operators to provide fixed odds games at zero financial risk to themselves. There will be a guaranteed profit for the game operators for every bet that they take.
- We will do the above by buying the risk from the game operators at the mathematically provable lowest possible cost that protects the EdgeFund centralized bankroll. This ensures that EdgeFund cannot be beaten by a competing smart contract, and cannot be bankrupted itself by game operators.
- Every transaction will be executed by open source code on the public Ethereum blockchain, making EdgeFund platform provably fair for all parties interacting with it.
EdgeFund’s smart contract calculates the lowest mathematically possible edge it can offer for each bet, in a way that ensures no risk of ruin for the shared bankroll. Game operators choose the total edge for each game, and EdgeFund processes all bets, returning a steady flow of profit to the game operator after each bet is resolved.
EdgeFund will use native ERC20 compliant tokens, to accept and payout bets passed on by game providers from their users. These tokens are of fixed total supply to ensure tokens can retain value over time. To defend its bankroll from risk of ruin, EdgeFund charges a dynamically calculated house edge at the mathematically minimum possible value for each bet. The edge leads to a long-term accumulation of value in the EdgeFund shared bankroll that can be redistributed to token holders and users.
We believe that this platform will be attractive to token holders looking for increasing value, and to fixed odds game operators and their users. It will allow licensed start-ups across the world immediate access to liquidity they could never achieve on their own. As the platform grows, larger game operators will find they can make more profit at less risk by using EdgeFund’s bankroll to underwrite their large bets.
Follow us on Medium to stay updated with our progress as this exciting new platform is built. If you want to get involved in discussion, sign up to our Slack channel and follow us on Twitter @edgefundteam. The core team members are Colin McCrae, Andy Watt, Matt, and Gareth Oates. Our website is www.edgefund.net and we own the ENS address edgefund.eth.