Smart Billions is the world’s first multibillion blockchain lottery. Find out how it works today in our review.
What is Smart Billions?
Smart Billions, found online at SmartBillions.com, describes itself as “the first fully decentralized and transparent global lottery managed by Ethereum’s smart contract.”
The lottery begins its ICO in mid-October. As a Smart Billions token (PLAY) holder, you’ll receive a monthly dividend starting one month after the initial token offering closing date. The company’s whitepaper mentions that token holders should expect an annual yield of over 30%.
Because Smart Billions is based on an Ethereum smart contract, all bets and results are public. Bets and results are recorded onto the Ethereum blockchain with no third party involvement.
Out of all the funds collected for the lottery, only 0.25% of total funds will be accessible to the smart contract operations.
How Does Smart Billions Work?
Smart Billions brings the concept of a lottery to smart contracts. SmartBillions is an Ethereum smart contract where all operations are recorded on the blockchain and made public.
To play the lottery, a player chooses 6 numbers between 0 and 15 and sets their ticket values. Payouts require at least 2 correct matches. The lottery results are taken from the hash of the third subsequent Ethereum block (the last 6 digits of the hash). This guarantees transparency and fairness in the lottery.
You can view deeper technical details of the Smart Billions lottery process at their whitepaper here. Neither the administrator nor any third party can affect the lottery process. Once the bet is placed, the smart contract automatically executes the next steps.
Smart Billions Features
Some of the advertised features of the Smart Billions lottery include all of the following:
- The lottery is operated by a fully independent smart contract serving as a self-amending regulatory guarantor, with the whole process held on the Ethereum blockchain for maximum transparency and security
- The limited PLAY tokens sale crowdfunding goal is set for the highest initial jackpot of all online lotteries (180,000 ETH), with a win structure not limited to the Jackpot value
- Full transparency and security is provided by the smart contract’s elimination of any third party involvement in the lottery process and funds management
- Lack of signup requirements providing full anonymity with instant ticket purchase capabilities
- No prior deposit requirements, with direct ticket payment from players’ digital wallets
- Immediate, secure, and anonymous payouts directly after each lottery drawing
- Nearly instant bet placement (under 1 minute), nearly instant results (about 60 seconds), and instant win payouts
- A small house edge of 13.85%; 5% of that is allocated to the monthly dividend payment for PLAY token holders; between 7.85% and 8.85% is transferred directly to the jackpot, with 1% going to affiliates depending on their performance (the house edge is stated in the smart contract and cannot be changed by the administrator or any third party)
The PLAY Token Sale
Smart Billions tokens are called PLAY tokens. The crowdfunding goal for the token sale is set at 200,000 ETH. 90% of the raised sum will become the initial value of the jackpot, with the remaining 10% allocated for platform development and marketing.
79.37% of tokens are available during the crowdsale, with 20.63% of all PLAY tokens created. The goal is to create 252 million PLAY tokens, with 200 million going to ICO backers and 52 million to the development team.
The PLAY token sale is scheduled to begin on October 16.
Smart Billions token holders have a unique protection over their investment. Token holders are allowed to redeem their tokens at any time after the PLAY tokens crowdsale closes. They can reclaim most of their invested funds, even if there are unpredicted issues during the development process.
SmartBillions Gets Hacked in October 2017
SmartBillions made headlines in October 2017 for launching a hacking competition. The developers challenged hackers to get through its smart contract’s security, giving hackers a 1,500 ETH ($450,000) reward to anyone if they managed to compromise the smart contract.
The goal of the hacking competition was to demonstrate the comprehensive security of the lottery smart contract.
Within days, the challenge had backfired. The hacker managed to game the system and force the lottery to give him large amounts of money. The hacker managed to withdraw 200 ETH twice before the contract’s admin pulled the remaining funds and cut the losses. You can view the drama in the contract’s address on the Ethereum blockchain here. The drama unfolded on Reddit in this thread.
SmartBillions, to their credit, congratulated the individual (or individuals, as it seems like it was two hackers). The team added that they’d rather see the hack happen now instead of during the actual lottery.
Nevertheless, the SmartBillions team faced criticism for withdrawing the ETH from the smart contract before the competition was complete – despite the fact that hackers legitimately managed to hack the smart contract.
Smart Billions is a lottery built on an Ethereum smart contract. The company has big plans for the future, and it could turn into the world’s largest blockchain-based lottery game.
The SmartBillions token sale for PLAY tokens begins on October 16. To learn more about the lottery, or to participate in the ICO today, visit the platform online at SmartBillions.com.