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Due to advancements in the internet and mobile devices, the way of participation in lotteries has evolved. Mobile technology’s growth has made lotteries more convenient and easily accessible. Mobile apps are now offered by many lottery providers and those can be easily downloaded in a tablet or a smartphone. Users can use these apps for buying tickets, managing their accounts and viewing the outcomes of draws through an Internet connection from anywhere and anytime. Online lottery industry has seen significant growth after it has become easy for players to access online lottery platforms at any place and time. From the global gambling revenue, 29% share is kept by the lottery industry. 4.3% of annual growth rate has been represented by the global lottery industry when it grew to $284.3 billion in the year 2014 from $187.1 billion in the year 2004. But, as the digital economy has grown, the lottery industry has faced different challenges such as security, lack of fairness & transparency, etc. These challenges can be overcome through blockchain technology which can help online lottery platforms to become more secure, fair and transparent.
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Challenges of online lottery industry
Availability
Because of the domestic market’s small size, it becomes impossible for users belonging to different countries to get involved in the world’s biggest lotteries as they get restricted to only get involved in the local lotteries. Though, the latest online lottery solutions allow players to buy lottery tickets from worldwide but there are higher fraud risks. On average, less than 50% funds that get gathered through sales of the lottery tickets are issued for the prize pool and the participants of lottery do not have any control over the money that is collected through ticket sales and the winnings are also taxed in some of the countries.
Fairness
It is crucial to make sure that the games integrity is maintained for avoiding frauds and manipulation risks. Following questions are asked by the lottery players as they doubt lottery’s fairness:- -Is the winner of the jackpot real? -Do the prizes get paid on time? -Is the method of RNG random and secure? -Are online lottery platforms secure? Since, the following questions cannot be answered by the traditional lotteries thus they lack fairness and transparency.
Funds distribution
For different social projects and charities, lotteries are used for fundings but due to high corruption in certain countries, players doubt whether the distribution of funds is fair or not as they cannot get any information about the funds distribution. Thus it is the biggest challenge faced by the players to trust any particular lottery association.
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What is Blockchain?
Blockchain, a ledger noted for keeping asset transactions, offers shared, instant access. Literally, it is exact to the parties involved in the network. It’s a chain of transaction data for multi-asset types, which allows for improved data accuracy and unveils the possibilities of business process redesign through the provision of a single source of truth for the monitoring of transactions and operations, fostering trust, efficiency, and new prospects.
Effect of Blockchain Technology on Online Lottery Gameplay
Blockchain is a decentralised digital ledger which can be used for recording transactions and can revolutionise the way of interacting with goods, money & services such as lotteries. There are various features of blockchain technology which make lotteries efficient, transparent and secure. Here are some of the benefits of blockchain technology in online lottery platforms:-
Decentralisation
Decentralised nature is a key feature of blockchain technology. It can be considered similar to a computer network which works together for recording and validating transactions & is not under control of any centralised authority that keeps it untouched by corruption, hacking and fraud. This feature of blockchain plays an important role in lotteries as they are often at risk of manipulations and frauds. With the use of blockchain, lotteries can become more trustworthy & secure.
Transparency
Blockchain technology’s another important feature is transparency and each transaction gets recorded & viewed by anyone having access to the network. Thus, lotteries using blockchain technology are more transparent and outcomes of every draw can be publicly verified. Additionally, the lottery tickets are stored safely. This results in enhanced trust and reduced risk of frauds in lotteries.
Immutability
Transactions cannot be changed by anyone once they get recorded on blockchain and this feature is called immutability and can prove to be useful in lotteries for ensuring that outcomes of every draw do not get altered. It helps in preventing fraud and enhancing the lottery's integrity.
Smart contracts
These are basically self-executing contracts which can get programmed for automatic execution after some particular conditions get met. Smart contracts are a key feature of different blockchain platforms and are used for automating lottery processes. For instance, smart contracts are used for automatic verification of every draw’s outcomes, allocation of prizes and distribution of winnings.
Tokenization
It is the process of conversion of an asset to a digital token on blockchain. For instance, tokenization can be used by lotteries for creation of digital tokens, such as non-fungible tokens (NFTs) which represent entries in the lottery. These tokens can get traded as well as sold in a secondary market that in turn helps lotteries in generating additional revenues and enhances the liquidity.
Anonymity
Blockchain lotteries are designed such that users do not need to disclose their real names or ID numbers. Here is the duality in this feature: it makes sure that participants remain anonymous, hence better privacy, and it also proves a capability that integrating blockchain does to online lotteries in managing risk through diversified investments.
Accessibility and Convenience
Lotteries backed by blockchain technology have the very best accessibility worldwide. In other words, people can join these lotteries from anywhere in the world at any moment, just from using their mobile phones or computers—an aspect that not only enhances convenience but also revolutionises access to lottery events.
Efficiency
By automating specific activities, blockchain technology is able to increase operational efficiency while reducing the time it takes to process lottery transactions. This increased efficiency quickens the rate at which the lottery is administered, enriching the experience for participants and making it all the more attractive to prospects.
Cost-Effectiveness
By implementing blockchain technology in the lottery operations genuinely reduces most of the overall costs associated with managing and running the lottery. This is achieved through automating numerous procedures that were hitherto done manually. Less manual labour does not just smooth the system. It also saves on costs that effectively impact players participating in the lottery and operators running its functioning.
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How does a Blockchain Based Lottery Platform Work?
Blockchain lottery process involves following technology components:-
- Web platform for the admins so that they can deploy smart contracts
- Public blockchain
- Web platform or iOS/Android app for players
Here is the process of how does a blockchain based lottery platform works:-
Step 1
Sign up process is done by the players for the lottery platform. Lottery players can participate in the lottery after signing up and then they can become members of the platform. They can use following information for signing up in the blockchain lottery platform:- -Phone number -Name -Email ID -Wallet address After successfully signing up, your players can receive notifications and alerts on a regular basis regarding ticket openings.
Step 2
Ticket openings are announced and smart contracts are deployed by the admin. As announcement of the ticket openings are done, then the notification is received by the users. Smart contracts are also deployed by the admin which possesses lottery game’s pre-defined rules for bringing transparency & fairness to the ecosystem. The identities of the players remain anonymous as they purchase tickets with cryptocurrencies. Since the transactions are stored on public blockchain, thus they are traceable thereby making it easier to resolve and handle disputes related to lotteries.
Step3
There is generation of a random number which gets recorded on the blockchain. Since RNG is blockchain-based, the algorithm is based on the recent random transactions of blockchain. A specified amount as well as order of the numbers are pulled for generation of every winning number sequence. An extra randomness layer is added to the process of selection as no one is aware about the next transaction which is going to take place in the blockchain. As the random number gets generated and the player's ticket number gets matched to the generated number, players get awarded and then money gets automatically sent to the player’s respective wallets. The funds which are to be distributed among players are well-defined within the smart contracts. Thus, every player gets the decided funds and commissions on the platform. Also, the code of smart contract is publicly available on platform, thus the rules which are defined in contracts can be checked by the players for confirming whether the funds are distributed in a fair manner or not.
Step 4
The transaction record’s history can be traced back by the players. The transactions get recorded on blockchain so by tracing back history, players can also check that the jackpot is won by whom and wins & commissions are paid as defined in smart contracts.
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What is a DeFi Lottery Platform and How is it Useful for Entrepreneurs?
Players can also participate in different lotteries through DeFi crypto lottery platforms. DeFi lottery systems users can play on these platforms just for pleasure as well as for winning big money quickly. Since these platforms are decentralised and also provide users the option to earn big prizes even without leaving their homes, more consumers get switched from conventional lotteries to DeFi lottery platforms. Here are some of the characteristics or features of a DeFi lottery system:-
- Minimal cost
- Fully independent
- Auditable
- Dependability
- Enhanced user experience
- Full transparency and security
- Player’s privacy and confidentiality
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How to Develop a Blockchain Lottery Platform?
Buying a franchise or developing from scratch
The entrepreneur can decide whether he wants to start a online lottery business from scratch or buy a franchise. Starting a lottery business from scratch allows you to build the online lottery platform exactly as per your requirements. Although it takes time but you get an exclusive and precise solution which is based on your needs.
Lottery concept development
Lottery game concepts are developed in which you can determine the size of winnings and bets are determined for your lottery platform and you can also decide how many numbers will be guessed by the participants and random numbers for guessing will be selected from which pool.
UI/UX designing
UI/UX of your online lottery platform needs to be designed innovatively and you can make your players' gameplay more exciting and engaging by including imaginary rivals, vivid animation, etc.
Lottery licence
Licensing from the government is required by most of the lotteries. If we talk about the US, the licence type required as well as the process for obtaining it is based on the state.
Lottery software development
Lottery software needs to be developed by an expert team of online lottery software providers who have strong industry experience as well as technical expertise. The lottery software must possess all the necessary as well as engaging features through which your users can have an enjoyable gaming experience.
Integrating crypto wallet
A crypto wallet is required for accepting EOS, ether, bitcoins and other virtual money from the players as well as paying winnings to the game winners. Thus you must ensure that your online lottery platform possesses secure crypto wallets for allowing easy and fast crypto transactions.
Development of lottery smart contracts
Players as well as licensing authorities check smart contracts as the main thing as the lottery platform’s key highlights include honesty, transparency and quality. You should do creation of a smart contract for the lottery with an open source code so that it can be checked by anyone to ensure that the platform is fair.
Testing and quality assurance
Testing and quality check of the online lottery software must be done accurately to ensure that the online lottery platform is bug-free and all the features and functionalities of the lottery platforms are working correctly.
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Future of Blockchain Lottery Software
Blockchain lottery software ensures a great perspective for the future with its safe, transparent, and fair game experiences. The speed with which blockchain technology is being used within the lottery sector presently is high, accompanied by increased security, transparency, and efficiency. With blockchain, lottery operators can deliver customers with immutable results and instant payouts, developing customer service. Besides, blockchain empowers peer-to-peer payments while buying lottery tickets without any agents. All in all, blockchain lottery software has huge potential for drastically changing the face of the industry and player experience.
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GammaStack : Offering Feature-rich and Advanced Blockchain Lottery Platform
Are you in search of the most reliable and trusted online lottery software providers? Then you must count on GammaStack and get a feature rich and highly advanced online lottery platform. Our online platform covers all the exciting features, secure payment gateways, engaging UI/UX, etc. Global lottery formats such as Powerball, Mega Millions, etc as well as custom or private lotteries are supported in our online lottery software. We can do all the on-demand customisations in the online lottery software as per your requirements.
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Sources
- https://innovativezoneindia.com/blockchain-affect-playing-the-lottery/
Frequently asked questions
Yes, we offer feature-rich and advanced blockchain lottery software.
Yes, we can build blockchain based custom lottery software.
Yes, our blockchain lottery platform is fully secure.
Yes, we can provide bitcoin lottery software development.
Decentralisation, transparency, immutability, smart contracts, etc are some of the benefits of blockchain technology in online lottery platforms.
Smart contracts do things automatically when certain conditions are met, like picking a winner in a lottery without anyone having to do anything.
Yes, blockchain’s immutable ledger and transparent processes make it hard for fraudulent activities to occur without being noticed.
Blockchain technology secures transactions through cryptographic techniques, making it virtually impossible for hackers to alter or forge transaction data.
Blockchain can reduce operational costs by automating processes, and it can also create new revenue streams through tokenization and decentralised finance (DeFi) applications.
Blockchain provides a seamless and transparent gaming experience, with quick and secure transactions, instant verification of results, and enhanced trust in the system.
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