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Borderless, Secure and Transparent: the Advantages of Blockchain for Lotteries

Traditional lotteries proved to have some serious problems. Using a proprietary developed blockchain, BitWin24 offers an innovative alternative to all existing lottery systems on the market.

Have you ever thought about your chances of winning the lottery? Hitting the jackpot in a 6/49 draw happens approximately once in 14 million attempts. In fact, economists, mathematicians and financial experts all agree that participating in lotteries does not make economic sense because the odds are not in your favor. Despite that, it seems that people are not discouraged to try their luck – according to a Bankrate survey in 2019, more than one third of people (35 percent) buy at least one lottery ticket during the typical month.

Traditional lotteries do have some serious problems. For one, the prize pools of national lotteries, which take up the highest portion of the market share of all lotteries, are limited to the countries they are conducted in. Although it is still very high, the jackpots do have limited ceiling, while the number of participants rises disproportionately to it.

However, there are far worse drawbacks of traditional lotteries than their geographical constraints. Perhaps the most notable issue lies within the lack of transparency in draws and jackpot payouts. The RNG algorithms or mechanisms can be manipulated, jackpots may not be paid out in full or at all, and due to the fact that there is no supervisory body allowing the participants to know what the lottery provider is doing, there is a situation of informational asymmetry.

Another problem with traditional lotteries that is closely related to that one is the uncertainty on how the profits acquired through ticket sales are invested. It turns out that only a maximum of 50% actually goes towards the prize pools, meaning that the biggest winners in lotteries are the providers themselves. While sometimes a certain percentage is dedicated to charity and other noble causes, the amount is usually rather insignificant.

All of these factors are major obstacles that prevent lotteries to expand their potential. In a perfect scenario with 0% chance possibility of fraud (meaning no informational asymmetries), it would make economic sense for people to take part in lotteries, which would skyrocket their popularity tremendously. Yet how can we get to that point? It turns out that with the advent of blockchain technology, the possibility of this happening has presented itself.

Blockchain Technology in Lotteries

Blockchain technology has proven that it has the potential to disrupt whole industries through the immutability and transparency of blockchains. The information that flows through blockchains is not changeable by any party and is visible to both sides in a given transaction, which opens up a whole new world of fairness due to the elimination of one-sided informational asymmetry.

This concept is directly applicable in lotteries, because they are suffering precisely from a lack of transparency – you don’t know where the money you spent for your lottery ticket is going, how many participants there are, whether the RNG algorithms or mechanisms are rigged or not, how the winning combinations was picked and if the winners actually received their prize. With blockchain technology, this information cannot be manipulated by any party and is visible to those involved in the transaction, thereby protecting the interests of all sides. For example, by using Smart Contracts, you know perfectly well where the money you spend on your lottery ticket is going – the address they are flowing to is predefined and in case it gets changed, you can easily find out. Furthermore, you also know where the money from that address went further down the line, which guarantees that they will be used exactly as they are supposed to when you agreed on conducting the transaction.

The advantages of blockchain are not limited to just higher security and transparency. The technology offers faster payments in cryptographic currencies that are independent of the control of banks and their fees. This leads to much higher flexibility and allows a blockchain-based lottery to reach people without any geographical restrictions easily, in a way free of administrative restraints imposed by third parties.

There have been multiple attempts to implement a blockchain lottery over the last three years. Although several projects succeeded in bringing their solutions to the market, they are still struggling to take over a fraction of the market share, most of which remains in the hands of national lotteries. Luckily, there is a new lottery provider coming to the fold that has designed both a superior infrastructure and an incentive program that will greatly speed up the widespread adoption of the lottery and secure its critical mass of users needed for jackpots to grow.

BitWin24 – Innovative Draw System and a Win-Chain Referral Program

The mission of the BitWin24 project is to make lotteries fair and lucrative for everyone through the utilization of advanced technology and strategic incentives. By using a proprietary developed blockchain to handle payments, BitWin24 offers an innovative alternative to all existing lottery systems on the market. The draw system is based on the Bitcoin blockchain and uses a randomly generated hash that ensures the lottery is completely free from manipulation by any party. Furthermore, BitWin24 offers master nodes and a proof of stake (PoS) system that enables IT companies and people with advanced hardware available to them to reinforce the ecosystem by verifying transactions. The lottery rewards them with passive income for their contribution and offers them a ROI of up to 200%, providing incentives for people to join the ecosystem, which greatly expands its reach. What is more, BitWin24 offers staking contracts for investors who hold BWI coins in their BitWin wallets, rewarding them with various staking rewards.

One of the most notable advantages of BitWin24 is its kind tiered referral system that offers referrals unlimited rewards through so-called “win-chains”. These allow anyone who referred BitWin24 to win a percentage of all prizes acquired by their first-tier direct referrals as well as anyone down the line, which can result in massive rewards accumulated passively. The purpose of this mechanism is to greatly incentivize people to refer the lottery and ultimately overcome the major obstacle previous blockchain projects had in the past.

If you want to learn more about how BitWin24 is planning to revolutionize the concept of lotteries, visit https://bitwin24.com/en/ for more information.

Source: https://www.coinspeaker.com/blockchain-advantages-lotteries/