What happens, if the lottery is combined with a digital currency project? it will certainly be very interesting.
I was interested in making an article about the Loteo Project, developing a lottery based on blockchain technology. Blockchain is a data structure that cannot be changed, it can only be added. Each data from the blockchain is connected to each other where if there is a change in one of the data blocks it will affect the next data. Lotteries are a very popular form of gambling, but they face a number of old problems. States can restrict their citizens from participating in lotteries or they can limit their choices to state-run monopolies.
What is LOTEO?
LOTEO is an automated digital lottery that is executed via code instead of being run by people. The lottery will, first on a weekly, and later on a daily basis, draw a random Ethereum address from a pool of users. The draw will be based on a random number generation system that will have a publically-viewable code on GitHub and also on Ethereum Network. The winner shall receive 75% of the prize pool as a reward, which will be sent to their Ethereum address.
Not only will LOTEO make this form of gambling accessible to more people than ever, but it will also address the issue of trust as it will be executed via a smart contract, the code of which will be publically-viewable on GitHub and also on Ethereum Network. Through a combination of international reach, transparency and automation, LOTEO aims to become the industry standard in the rising market for digital lotteries.
Lotteries are an established and popular form of gambling, can be manipulated against participants, even though the level of oversight is claimed by the organizers. Even without manipulation, the lottery is profitable for the organizers, with many claiming profit margins of up to 50% of ticket sales.
Blockchain technology is an opportunity to run the lottery business, because it has a safe and transparent lottery organizing method, but it can also tap into new market segments, most notably the global unbanked customer segment as well as regional markets with restrictive legislation. A lottery based on smart contracts would offer an automated, secure and transparent platform for this form of gambling.
The Technology Offered By LOTEO
The Loteo project uses blockchain technology and smart contracts as the basis. All data recorded on the blockchain is known to many people, so the lottery business made by Loteo is fully transparent.
By being governed by smart contracts rather than governments or private individuals, the drawing process becomes automated.
There are many problems with current blockchain-based digital gambling platforms. They are often too complicated, suited only for crypto enthusiasts, offering an unsophisticated design that is neither attractive nor user friendly.
Before playing the lottery, users are required to register their ethereum address, which is then listed as a lottery ticket. LOTEO plans to provide additional payment options asides from Ethereum, Bitcoin or other cryptocurrencies such as third party merchants that accept fiat currencies like US Dollars or Euros. Received FIAT has to be exchanged for cryptocurrencies, through the broker and received on LOTEO platform.
LOTEO aims to have as many points of sale as possible according to all regulatory restrictions. The plan is to incorporate also classical, physical way of ticket purchasing with QR, thorough using third parties sales net.
Winner will be able to change ETH for BTC or EUR directly on the platform by withdrawal request.
For more information about Loteo Project, you can visit the link below: