September 22, 2021, | AtoZ Markets–Since the invention of the internet, gamers, and gamblers have been able to play every kind of game and engage in lottery activities from the comfort of their homes. Since the turn of the century, the gambling market has grown exponentially but still faces issues of trust and fairness, which has slowed adoption rates.
Despite the industry slowing its pace in 2020, dropping an estimated 13.4% from the previous year’s revenue of $256 billion, due to the Covid-19 pandemic, gambling is getting wider global adoption and is expected to hit the $500 billion mark in market value in 2026. Of the huge gambling industry, lottery contributes to about 29% of the total revenue, which shows the appetite of gamblers in the space.
In the past, however, players have complained of a lack of trust in the lottery companies, demanding a more fair and transparent process. Across the globe, players doubt the fairness of lotteries and fear the risks of manipulation or fraud. Players have various doubts about the lottery process – from whether the tickets are real, random number generation (RNG) is random, and how the jackpot winner is selected – which causes trust issues between players and the traditional lottery companies.
Additionally, the geographical barriers also lock out some players from participating in the largest and most prestigious lotteries in the world. The internet has provided solutions to enable players from across the world to purchase any lottery ticket in the US, or worldwide. However, these users are forced to pay higher service charges and the risks of fraud and mismanagement also increase. The lottery participants also have no control over how much money should be collected from ticket sales, and lottery winnings are taxed in some countries.
Can blockchain narrow the gap?
In an aim to narrow the trust gap between lottery companies and gamblers, developers are creating blockchain-based lotteries, leveraging their decentralized and trustless nature to create solutions for players and gamblers.
Launched in July, MagicLotto, a QChain based decentralized lottery platform, introduced the world’s first lottery based on the latest generation blockchain technology, which provides a system of unlimited scaling. The platform consists of four major lottery games 6/49, Jokerball, 7Plus, and free lottery games all coded onto a blockchain to ensure trust and fairness to all participants.
MagicLotto enhances the gambling experience of players providing them with the ability to buy tickets using cryptocurrencies (QChain’s native token, QDT, in particular). The platform also has automatic accrual of winnings, instant withdrawal of won money under a smart contract, no hidden fees when withdrawing funds, and the ability to create your own network of players and receive rewards for their purchases and winnings. This provides a potential passive income channel for the players on the platform.
Modernization of the lottery industry
Blockchain technology is expected to revolutionize and modernize traditional lottery gaming if used correctly. First, due to the decentralization properties of a blockchain, anyone in the world can simply purchase a ticket from thousands of miles away hence including everyone in participation of the best lotteries worldwide.
Secondly, through leveraging blockchains such as QChain, MagicLotto enables transparent and public lists of the lottery draw and the outcomes while keeping the users’ identities completely anonymous. Your lottery can easily be verified using the platform’s public keys and viewing the transaction history. Winning numbers are published in real-time allowing anyone to follow up their bets without depending on the results posted by the lottery company. This means that even if you lose a bet, you can still verify whether any of the winners were playing with your preferred keys or not. It also helps prevent any sort of fraud from taking place once the numbers are announced.
Finally, blockchain-based lotteries also provide reliable security systems for all transactions and lottery draws offering non-custodial wallets, which maintain control of the funds in the players’ hands.