XYO Network Using Chainlink VRF to Fairly Select Random Winners of COIN’s Location-Based Giveaways
From the XYO and COIN team leaders:
We’re excited to announce that the XYO Network, our blockchain technology used to record, validate, and deliver conclusions based on real-world data, has integrated Chainlink Verifiable Random Function (VRF), a tamper-proof and publicly auditable RNG solution. Chainlink VRF provides our location-based giveaway smart contract with random numbers used to select random winners in a provably fair and secure manner.
COIN, our popular geospatial crypto-centric app, acts as the front end for these giveaways by allowing its users to participate based on visits to selected special locations. When COIN users opt to enter, their Ethereum wallet address along with their location data is sent to the XYO Network, which is then processed and if eligible is used to create an official list of entrants for the decentralized giveaway.
To choose the recipient fairly from this list of entrants, the XYO Network needed a verifiably tamper-proof source of randomness. After reviewing various mechanisms, we selected Chainlink VRF, the blockchain industry’s most time-tested and widely adopted solution for secure and verifiable RNG.
Chainlink VRF works by combining block data that is still unknown when the request is made with the oracle node’s pre-committed private key to generate both a random number and a cryptographic proof. The giveaway smart contract will only accept the random number input if it has a valid cryptographic proof, and the cryptographic proof can only be generated if the VRF process is tamper-proof. This helps provide users with automated and publicly verifiable assurance that the receiver of the reward was picked randomly and that the process was not tampered with or predicted by the oracle, outside entities, or the XYO Network.
The first decentralized giveaway was completed on September 15th using a popular restaurant for a 4-hour period. This pilot received hundreds of entrants through COIN and the winner was successfully selected using XYO Network and Chainlink technologies on the Polygon blockchain. The selected winner was delivered the prize ERC-721 which was funded with 10,000 XYO, along with enough MATIC to withdraw the XYO and bridge it to Ethereum Mainnet.
The significance of this project is the demonstration of individualized real-world location-based data being verifiably oracled to resolve blockchain smart contracts. Combining the location data provided by the users of COIN with the power of the XYO Network and the utility of Chainlink VRF, we were able to successfully demonstrate a low-cost, verifiable, and decentralized way to execute location-based giveaways, showing the potential for many other practical use cases in the future.
“COIN plus XYO is so exciting because the combination of technologies helps bridge the gap between real-world location data and blockchain smart contracts,” said Arie Trouw, Co-founder of XYO and CEO at XY Labs. “Chainlink VRF was integral to the success of our development of these decentralized giveaways because it supplied us with the verifiable source of randomness we needed for the extra level of assurance that winners were selected in a fair and unbiased manner.”
About Chainlink
Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries, and offers global enterprises and leading data providers a universal gateway to all blockchains.
Learn more about Chainlink by visiting chain.link or read the documentation at docs.chain.link. To discuss an integration, reach out to an expert.
About XYO Network
The XYO Network is a distributed system of various types of components that collect, validate, and process geospatial data using a proprietary protocol in order to verifiably answer location-based questions for blockchain smart contracts and off-chain partners.
About COIN App
COIN is a mobile app with over 3 million downloads that rewards users for their time, attention, and data. These in-app rewards can then be used to redeem for cryptocurrencies, allowing users to build a crypto portfolio through earning it consistently over time rather than speculating and risking their hard-earned money. Check out the case studies done on COIN users here.
