What Is Blockchain Lottery?

With the emergence of cryptocurrencies and blockchain technologies, the lottery market is about to suffer some serious changes. The huge $300 billion lottery monopoly may soon crumble. Why? Because blockchain lottery is much more convenient, transparent, and attractive to the modern day player. So what is blockchain lottery?

Smart Contract

The main advantage of the blockchain lottery is the absence of the 3rd party and the complete transparency of the process. In traditional lottery when you buy a ticket, you pay money to the third party, who deals with collecting the funds and then distributing the prizes. This produces unfairly low Jackpot payouts since the 3rd party holds on to a substantial amount of money.

Blockchain lottery is regulated by a smart contract. The contract eliminates the presence of the third party.

For example, you want to buy a car. You and the car owner have to go to the bank and request a money transfer from one account to another. The bank, in this case, is the third party. Meanwhile, the smart contract works like a vending machine. You drop a coin, you get the goods. No third party involved.

All the transactions done within the scope of the smart contract are fully transparent. Hundreds of people have access to the information about the money so there is virtually no possibility of a scam.

Since the third party is absent from the algorithm, the jackpot value is increased. Most of the money, which is paid by the lottery players when they buy tickets, goes toward the prize amounts.

Of course, it’s impossible to eliminate the third party completely. The company that organizes the lottery will be holding on to some funds. For instance, they may need money for marketing purposes. But unlike the traditional lottery, the third party declares the amount, which will be withheld. For example, 10 %. Once the amount is declared, the party doesn’t have an opportunity to take more money. All the actions that have to do with taking a certain percentage are fully transparent.

Speed and Simplicity

Blockchain lotteries are virtually instantaneous. People buy the tickets, the numbers are picked, the prizes are paid. That’s it. You no longer have to watch TV to check out lottery results. You pay the money. You get the money. It’s that simple.

No Scams and Fraud

When you take advantage of the blockchain lottery, you protect yourself from scams. The lottery tickets are electronic and impossible to forge, so you don’t have to worry about losing the jackpot to some smart hacker. The companies working on blockchain lottery usually allow the users to see the code powering the lottery program

Blockchain technology brings a lot of transparency into the world. The smart contracts turn complicated deals into simple procedures. The advantages of decentralized blockchain lottery are numerous. In the nearest future, it’s bound to destroy the US government lottery monopoly. As long as the people learn how to use cryptocurrencies, the future of blockchain looks exciting.

No Geographical Limitations

Blockchain lottery is arranged in virtual reality. One of the main advantages of such lottery is that anyone can play it. You don’t have to be a US citizen to play a lottery arranged on a US platform. As long as you have cryptocurrency and want to buy a ticket, you can play the lottery. The payouts are also done in cryptocurrency.

How To Play A Blockchain Lottery

In order to become one of the players, you have to buy cryptocurrency. This is the toughest step since not many people understand how it’s done. Most exchange platforms that you will work with require a certain fee for each transaction. At first, it may seem like an unnecessary investment. However, the benefits of owning cryptocurrency become obvious once you take advantage of such blockchain-related project as a lottery.

Once you have cryptocurrency, you can look for companies that organize blockchain lotteries. Today, there aren’t many of them yet since such lottery is in its infancy. However, with time, blockchain lottery is expected to replace its traditional counterpart due to obvious advantages.