Traditional lotteries are centralized. How can blockchain help?

Blockchain technology is slowly starting to get implemented in just about every industry out there, and lotteries are no exception to this rule.

As many entrepreneurs and developers move to adopt Blockchain, it has the potential to disrupt a lot of brands.

There are a few issues currently with traditional lotteries due to the fact that they are centralized.

Issues with centralized lotteries

The biggest issue when it comes to how traditional lotteries operate is their transparency, or in other words, lack of transparency. They are centralized, and as such, the lottery organizers have complete control over several factors.

  • What will happen to the money that is gained through the ticket sale?
  • How is the RNG (Random Number Generator) mechanism configured?
  • How do you generate the winnings?
  • How is the jackpot accumulated?

There are a lot of questions that are rarely answered, and as such, the confidence in lottery tickets and their fairness is decreasing as a result.

Then you have another issue, the geographical restrictions. You see, when we take a look at the national lottery, it is a representation of a limitation, and this limitation is in the fact that it is limited to the country in which it is conducted.

Then you have online lotteries, which do have their own set of advantages, such as allowing you to participate from home. However, they also have specific disadvantages. They are not as popular, which results in a reduced jackpot, and they are associated with lower levels of security due to their centralized nature.

Furthermore, when we go back to the traditional lottery, tickets can get lost, and this is an event that has occurred several times historically, which can make your odds of getting the jackpot drop to zero.

The biggest challenges of the lottery industry

Due to the fact that they are centralized, lotteries have real as well as perceived trust issues. Let’s take a look at three of the biggest challenges that are currently facing the lottery industry.


Ensuring fairness remains one of the biggest challenges when it comes to lotteries, as players might get to a point in time where they question the possibility of manipulation or fraud.


There are countries in the world where lotteries aren’t even legal. In other countries, only governments and other affiliated organizations only have the opportunity to obtain a license in the first place if they want to operate a commercial lottery business. This can have a huge effect on the distribution of funds.


Users who live in specific countries in the world might not be provided with the opportunity to participate in the world’s biggest lotteries. Think along the lines of the EuroMillions.

As such, these users are limited to playing smaller, local lotteries due to the fact that the size of their domestic market is smaller.

How blockchain technology helps lotteries

The people who end up playing these lotteries might not be satisfied with this current system, and as such, the traditional approach through which a centralized organizational structure organizes lotteries is slowly fading away.

Nobody can check the RNG or any other parameters of the lottery other than a small group of interested parties. As such, blockchain technology is an evolution in the sense that it can distribute the database structure with a secure authentication system for adding data without having a single point of failure, which is evident in traditional structures.

Any full node computer, server, or another device that participates in the network gets a copy of the ledger, and this increases overall transparency.


Using cryptocurrencies for gambling has seen a lot of popularity within casinos. The main advantage is that users get to gamble anonymously without the need to hand over their documents or create an account.

Fairness through smart contracts and hash value

Smart contracts are digital agreements within parties whose terms can be enforced by computers and add a heightened level of transparency to each transaction.

The rules cannot be altered with online gambling blockchain, and they are clearly legible to all parties. Additionally, the instant payout is also guaranteed, and as such, there are no concerns about a site withholding any winnings because no site is governing the game itself. The funds go into the contract directly, without any middleman interference.

The Netbox.Lottery

Netbox.Lottery is a blockchain-based lottery that aims to solve all of these traditional lottery issues by taking advantage of blockchain technology and providing profitable incentives.

Netbox.Lottery takes advantage of what are known as masternodes alongside the Proof-of-Stake (PoS) system with its native Netbox blockchain to process each of the transactions.

To keep the lottery as transparent and as fair as possible, Netbox uses a unique calculated hash value that is dependent on all of the transactions from the participants, which no one can manipulate.

The masternode owners and staking holders receive passive income rewards as an incentive for validating the blocks on the Netbox blockchain.

Netbox.Coins (NBX) are raffled in daily draws and twice a month, specifically on the 1st and 15th day of the month, in a progressive Jackpot.

The more tickets you end up getting, the higher your chance of winning becomes.

This lottery is provably fair, where an algorithm that checks and verifies the fairness, as it is built on blockchain technology.

As such, it is fully transparent, as every winning ticket can be easily found.
You can find more about it on the Netbox.Lottery website.

Blockchain technology is the future of a fair and transparent lottery experience that is borderless and can be experienced by just about anyone interested in trying out their luck and potentially winning big, and the Netbox.Lottery is at the forefront of this innovation.

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