PoolTogether’s ‘No Loss’ Gambling Platform Utilizes Chainlink’s VRF on Ethereum to Select Winners
Chainlink announces its verifiable random function on the Ethereum mainnet, bringing a host of benefits to the decentralized platform. PoolTogether, a gamified savings platform that allows users to gamble without losing, became the first platform to launch on Chainink’s verifiable randomness function (VRF). After two successful versions, PoolTogether launched Version 3 update on Thursday, allowing users to create their own new games implementing their own rules.
Chainlink plans to expand VRF to multiple blockchains.
Chainlink VRF is a decentralized randomness generator useful in improving lotteries, gambling, and gaming systems – both traditional and decentralized. Despite currently having full focus on implementing VRF on Ethereum mainnet-based platforms, the developers are looking forward to implementations to other blockchains.
Chainlink co-founder Sergey Nazarov confirmed with CoinTelegraph that several projects have inquired about the randomness function – gaming-focused Matic Network being one of them. Over 10 projects have worked on the testnet versions, while others such as PoolTogether used it on the mainnet.
“And I also know that a number of the chains that we're integrating into, interestingly enough, whether they're gaming-focused or not, already have people lined up to use it when we've finalized our integration to that chain.”
According to Sergey, Chainlink VRF is switching its focus to gaming and gambling-specific blockchains as rising Ethereum fees scare away gaming dApps from the platform. He said,
“And many users for gaming have now started to move to other more gaming-specific, which is then also where we'll have Chainlink VRF soon as well.”
PoolTogether uses Chainlink VRF on Ethereum mainnet
As mentioned before, PoolTogether is the first use case of Chainlink VRF on Ethereum mainnet. The decentralized gambling platform aims to give users a “lossless” random game. The platform uses Chainlink VRF to randomly select and reward one winner with crypto each week from a pool of savers. Well, you may wonder, how does no one lose on this gambling platform?
On the surface, PoolTogether collects Dai stablecoins in exchange from gamblers for raffle tickets and pools the tokens together. The pool then earns interest on Compound Finance, and a random raffle ticket is selected, to which the full interest from the pool is given. Everyone then gets their DAI stablecoins back.
So far, PoolTogether has distributed over $34,000 in rewards on the platform and plans to expand its platform with its third version launch. According to the team, PoolTogether V3 will allow users to create new games and pools using any asset available on the Compound Finance network, including Ether (ETH), Tether (USDT), Circle’s stablecoin, USDC, and Uniswap (UNI), among others.
The V3 also includes Chainink’s VRF system, which will replace the administrator that selects the rewards making it more decentralized and, in turn, trustless.
“So we see this as a continuing step of a long term mission. Ultimately, it’s important because building a system that doesn’t rely on any single person or entity can have a much greater impact on the world,” PoolTogether co-creator Leighton Cusack said.
According to Sergey, PoolTogether sets the pace for gaming and gambling platforms to decentralize randomness systems. While there’s still some room to fill before corporate gaming firms switch from their centralized randomness systems to decentralized systems, Sergey predicts a massive scandal could change all this.
“Once in a while in the gaming industry, you see these kinds of flashes of concern from users, you see some gaming sites somewhere front-running users from inside the gaming site, or you see a scandal with some gambling thing that's regulated, but some employee still was playing the game, and they still were able to win against other players,” he said. “And I think whenever those happen, those bigger firms do start to seek additional solutions.”