Despite still being stuck in the 20th century, the lottery industry is growing at impressive rates. With an average growth rate of over 8%, the sector is expanding almost three times faster than the world economy.
With that being said, it is no surprise that the industry has some problems that have been at its core ever since its emergence. While technological progress has managed to introduce solutions to some of them, there are some fundamental challenges that are rooted deep within their core. Let us take a closer look at some of them.
Lack of transparency: Undoubtedly, the biggest problem lies within the way traditional lotteries operate. Due to the fact that they are centralized, the lottery organizer has full control over multiple factors: what happens with the money acquired through ticket sales exactly, how the RNG mechanisms are configured and how to winning draw was generated, was the jackpot prize paid out in full and when – the list goes on. As a result, the general trust in lotteries and their fairness is diminishing, leading people to believe that the organizers are the ones who actually win the most. This is not too far from the truth – historically, there have been cases of fraud even in national lotteries that are supposed to be incorruptible. What is more, a maximum of 50% of the total funds acquired through ticket sales is dedicated to jackpots. Combined with the astronomically low chances of winning the jackpot (1 in 14 million to hit 6 of 49 powerball), this makes it economically unfavorable to participate in lotteries. As a matter of fact, according to financial experts and mathematicians, you are far better off saving the money in a piggy bank – even the rate of inflation would not diminish your fortunes as effectively as regular participation in lotteries.
Geographical restraints: National lotteries, which take up the biggest slice of total ticket sales in the market, are limited to the country they are conducted in. While this greatly limits the prize pools, it does not increase your chances of winning – although it might seem logical that a lower number of participants would mean higher win chances, traditional lotteries are not structured like this. There have been multiple cases where no one managed to hit the jackpot for months, leading to further draws, sometimes prolonging the process considerably. At the same time, the rate at which the jackpot increases, diminishes with each subsequent draw, which is in the interest of the lottery organizers.
Old fashioned methods: While online lotteries offer you the convenience to participate without leaving the comfort of your home, there are some drawbacks to them – not only are they unpopular compared to traditional lotteries, which leads to considerably lower jackpots and prize pools, but they are usually associated with fraud and low security. On the other hand, while offering you much higher prize pools, most national lotteries require you to buy a ticket the old fashioned way, which is generally impractical. The ticket can be misplaced or lost, an event that has occurred multiple times in the history of lotteries, potentially bringing your already astronomically low chances to zero.
These are the core issues traditional lotteries are faced with and if they are resolved, the industry will be fundamentally revolutionized, bringing it to a whole new level. Luckily, a recent technological breakthrough has finally presented an opportunity to resolve them once and for all. We are talking about blockchain technology, a decentralized, distributed, and oftentimes public, digital ledger that records and stores transactions across many computers.
Blockchain in lotteries
The properties of blockchain enable a completely new degree of transparency to be achieved without any downside. Unlike with traditional lotteries where everything happens behind the scenes, blockchain records all transactions, which are not subjective to change by any party without the whole network finding out about the altercation, making it the perfect system for prevention of manipulation. Ticket owners know perfectly well where their money went after they purchase their lottery tickets – smart contracts automatically execute transactions automatically based on a predefined set of rules that are publicly accessible. What is more, the RNG algorithms are also predefined and disclosed to anyone, making it impossible for the lottery organizers (or anyone else, should an external attack occur) to manipulate them in their favor. Ultimately, blockchain possesses the ability to resolve the most pressing problem of traditional lotteries – the possibility of fraud.
Blockchain removes any geographical, regulatory or financial restraints that are currently associated with lotteries. By going global, prize pools can be gathered from a worldwide audience, leading to much higher jackpots than traditional lotteries. Furthermore, by paying with cryptocurrencies, people can skip the hassle of bank transactions that are often slow, unreliable and expensive. Another aspect that is even more important than the flexibility offered by the innovative technology is anonymity, which has always been a concern for lottery winners – with blockchain, privacy issues become a thing of the past.
BitWin24 offers a solution
BitWin24 is the first blockchain-based lottery that has focused on solving all aforementioned issues with traditional lotteries through the use of advanced technology and by providing lucrative incentives. As its technological infrastructure, the lottery uses master nodes and a PoS (Proof-of-Stake) system with its own blockchain that handles transactions, while the draws are generated on the Bitcoin blockchain by using a randomly chosen hash that cannot be manipulated by any party. Master node owners are rewarded with passive income for validating blocks on the ecosystem’s blockchain.
BitWin24 encourages early adopters through an exclusive, continuous airdrop system that rewards early movers with 10% of all future jackpots proportionally to their contribution. Furthermore, with its referral system that enables win-chains, BitWin24 gives ambassadors who refer the lottery to others the unique chance of acquiring a steady passive income stream through a flexible percentage on all prizes won by their direct and indirect referrals.
BitWin24 is currently conducting a pre-sale, offering bonuses for early adopters including access to their exclusive airdrop system, which will last until June 2020 or until the capacity of the ecosystem allows it. To learn more about BitWin24 and their upcoming blockchain lottery, visit https://bitwin24.com/.