The cryptocurrency revolution has caused a significant amount of disruption in the online gaming industry, where the anonymous nature of cryptocurrencies such as Bitcoin combined with their high value has made them the ideal method of transferring value for users of online casinos and similar platforms.
One industry that has yet to benefit from the application of blockchain technology, however, is the $28 billion dollar lottery industry. The lottery industry suffers from a number of issues, such as the lack of fair and punctual distribution of funds and the easily-manipulated nature of the random number generators that are currently in use.
A new blockchain platform called Quanta has recently been granted the world’s first license to operate a fully-compliant blockchain lottery by the Isle of Man. Based on the Ethereum blockchain, Quanta is built around a provably fair, decentralized, autonomous, open-source manipulation proof mechanism.
In this article, we’ll take a look at the Quanta platform and find out how it works to find out whether it is able to solve the problems that currently plague the lottery industry.
What Is Quanta?
Quanta is a completely decentralized, autonomous lottery game in which the lottery drawing is performed automatically with completely no interference from humans. This ensures that the drawing has no possibility of RNG manipulation.
The Quanta platform uses smart contracts for ticket sales, as well as for the selection of winners, and for prize payouts. This ensures fully anonymous, transparent, manipulation free gaming. Using the blockchain to run lottery operations also removes many of the overheads associated with traditional lotteries.
In the current lottery industry, less than 45% of total earnings is distributed to winners due to high operating costs. Lottery organizations are required to pay for government taxation, administration costs, and public need costs. The blockchain-based Quanta platform, however, is able to distribute up to 85% of collected capital to ticket prizes.
The most interesting aspect of the Quanta solution, however, is that the platform delivers provability, transparency, and accessibility. All information is published using blockchain and smart contract technology, which means users are able to take part in the lottery, follow, and get paid out at any time, in any manner they prefer.
The Quanta platform also democratizes the lottery process by making it available to anybody around the world regardless of jurisdiction or geographic location. Obtaining a license to operate as a lottery organization, however, is essential to the success of any lottery operation. Lee Hills, the COO of Quanta, has commented on the importance of licensing:
“as the first blockchain gambling business in the world to obtain a reputable gambling licence, we have negotiated significant regulatory and operational hurdles.”
Quanta has turned to the Isle of Man in order to obtain licensing, which is one of the most widely-respected gambling jurisdictions in the world. In order to obtain the license, the Quanta system was verified and tested by NMI Metrology and Gaming, a regulated lottery testing house.
As a result, the Quanta platform was provided with licensing under the Isle of Man Online Gambling Regulation Act, which allows it to operate in full compliance with many nations internationally.
The Quanta random number generator that is used in the lottery process incorporates the Randao process, which requires participants that have achieved KYC verification to commit a random hashing number to an automated API and socket server using Randao wallets.
Daphne Caine, the Isle of Man department member with responsibility for E-gaming, has made statements regarding the recent licensing:
‘we are delighted to welcome a new company to one of the Island’s fastest growing sectors. The Isle of Man is a leading jurisdiction for online gaming and blockchain operations, with a well-established digital business ecosystem and community. The Isle of Man’s regulations and compliance procedures are specifically designed to accelerate cryptocurrency and e-Gaming industry growth on the Island. I would like to wish Quanta the best of luck with their future operations.’
The Quanta platform is the world’s first provably fair lottery to obtain licensing that allows it to operate as a fully-fledged lottery platform, and offers interested gamblers a provably fair way to participate in an open-source lottery competition. If you’re interested in following the Quanta platform, it’s possible to subscribe to email updates on the Quanta website.