Although still stuck in the 20th century, the lottery industry continues to grow at an alarming rate. The sector's average growth rate is above 8%, and its growth rate is almost three times that of the world economy.
That said, it is not shocking that the industry has had some fundamental problems since its inception. Although technological advances have managed to introduce solutions for some of them, there are still some deeply rooted significant challenges. Let's take a closer look at some of them.
Lack of transparency
Without a doubt, the biggest problem is the way traditional lotteries operate. Due to the fact that they are centralized, the lottery organizers have complete control over multiple factors: what exactly happens to the money obtained through ticket sales? How to configure the RNG mechanism? How to generate winnings? Have you accumulated jackpot prizes? When and where-the list goes on. As a result, the general confidence in lottery tickets and their fairness is decreasing, which has led to the belief that organizers are the most profitable organizers.
This is not far from the facts; historically, there have also been cases of fraud in national lotteries that should have been cleaned. Moreover, up to 50% of the total funds obtained through lottery sales are used for jackpots. With the extremely low chance of winning big prizes on astronomical numbers (1 out of 14 million wins 6 out of 49 Powerball), this is not economically favorable to participation in the lottery. In fact, according to financial and mathematical experts, depositing money in a piggy bank is much better, even the inflation rate will not reduce your wealth with the same effectiveness as the normal lottery.
The national lottery represents the largest share of the box office total on the market, but it is limited to the country in which it is conducted. While this significantly limits the prize pool, it does not increase the chance of winning a prize. However, it may seem logical that fewer participants mean a greater chance of winning; the traditional lottery structure is not the case. In many cases, nobody managed to win a few months, leading to further draws, which sometimes lengthened the process considerably. At the same time, the jackpot ratio decreases with each subsequent draw, which is beneficial for lottery organizers.
Even though online lotteries offer you the convenience of participating from home, they also have some disadvantages compared to traditional lotteries. They are not only unpopular, leading to a significantly reduced jackpot, but they are usually associated with fraud and low security. On the other hand, while offering you a higher prize pool, most national lotteries require you to buy old-fashioned lottery tickets, which is often impractical. Lottery tickets may be lost; this is an event that has occurred many times in the history of lottery tickets, which can make your odds of getting astronomical prizes fall to zero.
These are the fundamental problems that the traditional lottery has to face. If resolved, the industry will undergo a fundamental revolution that will take it to a whole new level. Fortunately, recent technological advances have finally provided an opportunity to resolve them completely. We are talking about blockchain technology, which is a decentralized, often public digital ledger that can record and archive transactions on multiple computers.
Blockchain and the lottery
Blockchain properties can achieve completely new transparency without adverse effects. Unlike the traditional lottery, where everything happens behind the scenes, blockchain records all transactions and nothing can be changed by any part involved in the transaction without being detected by the network, making it an ideal system to prevent manipulation. Ticket buyers are very aware of where the money goes after the ticket is purchased - smart contracts automatically perform transactions according to a set of predefined rules accessible to the public.
In addition, the RNG algorithms are also predefined and made available to anyone, which makes it impossible for lottery organizers (or anyone else, if an external attack occurs) to manipulate them for their own benefit. In the end, blockchain has the ability to solve the most pressing problem of the traditional lottery - the possibility of fraud.
Blockchain removes any geographic, regulatory or financial restrictions currently associated with lottery tickets. By going global, jackpots can be collected by audiences around the world, resulting in higher jackpots than traditional lotteries. In addition, by using cryptocurrency payments, you can skip the usually slow, unreliable and expensive hassles of banking transactions. Another aspect that is more important than the flexibility provided by innovative technologies is anonymity, which has always been a problem for lottery winners. With the development of blockchain technology, privacy issues are a thing of the past.
Lotto Nation provides a solution
Lotto Nation is the first-of-its-kind blockchain-based lottery, dedicated to solving all the aforementioned traditional lottery problems using advanced technology and providing profitable incentives. As a technical infrastructure, the lottery uses a master node and a PoS (proof-of-stake) system with its own blockchain for processing transactions. The lottery uses a randomly selected hash value that no one can manipulate and which is generated on the blockchain. Master node owners receive passive income rewards by validating blocks on the blockchain ecosystem.
Lotto Nation enables companies, charities and individuals to fix their own lottery and relates with players through the most prominent and acknowledged technology.