Ever tried your luck at the Powerball or Mega Millions? Are you a millionaire already? Do you have concerns over how the odds of winning are stacked up against you? Do you believe that the system is fair or transparent enough? Well, let’s find out.
While the lottery is a gambling product, it could also be referred to as a commodity. The high volume associated with the industry experiences year-over-year growth, and the entire lottery sector makes up around 29% of all revenue generated globally in gambling.
However, with the drastic growth in the digital economy, the lottery sector faces a new set of challenges, such as the demands for transparency and fairness. Powered by the innovative nature of blockchain applications, the lottery market could enjoy significant growth.
Did you hear about the Hot Lotto Fraud Scandal, where a man named Eddie Raymond Tipton rigged the Random Number Generation system to gain an edge? Well, the former IT Director at the Multi-State Lottery Association was sentenced to 10 years in prison, for rigging the RNG to win the $14.3 million jackpot in 2010.
Fairness is essential to protect the integrity of the lottery systems, and it's a challenge that the lottery industry has to deal with daily. For instance, the RNG has to constantly produce truly random numbers, to ensure that each player gets a fair chance at winning the lottery. So, blockchain-based lottery systems would record the random number generated on the blockchain, using those recorded random numbers to produce truly unique combinations.
Since no one knows the next recorded random number on the blockchain, the system gives an additional level of randomness to the selection process.
Lotteries are sometimes plagued by corruption, which affects the players when it comes to the distribution of prize money. Moreover, since the players have no way of obtaining information regarding the distribution of prize money, they have no reason to trust the lottery organization.
But using blockchain, once a player's ticket number matched the random number provided by the system, the prize money would be automatically allocated to that player's individual crypto wallet.
In addition, since the smart contracts are made public, the players could audit the code, to ensure that the terms of the contract include the fair distribution of funds. Finally, the blockchain-based lottery program guarantees no foul play in the ecosystem.
Disclaimer: The information and views supplied on the Coin Cloud blog are for educational and entertainment purposes only. We are not financial advisors, so please do your research and consult with a trusted financial specialist before investing your money.
Founded in 2014 in Las Vegas, Nevada, Coin Cloud is the leading digital currency machine (DCM) operator. With over 4,500 locations nationwide, in 48 states and Brazil, Coin Cloud operates the world’s largest and fastest-growing network of 100% two-way DCMs, a more advanced version of the Bitcoin ATM. Every Coin Cloud DCM empowers you to quickly and easily buy and sell over 40 cryptocurrency options with cash.
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