With the launch of Cyprus-based FireLotto on January 1, 2018, the world’s first-ever lottery based entirely on blockchain technology was born. Built upon the mature and decentralized Ethereum blockchain, FireLotto benefits from the same ideals that have made blockchain the choice of modern startups: transparency, open distribution and state-of-the-art cryptographic security.
Being a popular method of putting up small wager for a chance to win a significant prize, lotteries are run in many countries across the world, with online versions gaining popularity. However, the current system of lotteries means that they are governed by centralized parties or entities, lacking in transparency and requiring players to trust the intermediaries.
With FireLotto, a truly decentralized lottery has become a reality. It works just the way a traditional lottery does, whether played online or offline. However, instead of placing trust in a company, the immutability of Ethereum’s blockchain means that the results of all lottery tickets are permanently recorded on to the blockchain and protected against alteration or tampering.
All tickets ever bought with FireLotto are recorded and secured using smart contracts, with its back-end code fully viewable, allowing any player and user to inspect it to verify the fairness of the system.
As in a conventional lottery, the FireLotto prize fund grows according to ticket sales. Every ticket bought represents a player’s guesswork of a sequence of numbers. At a predetermined date, the winning sequence of numbers are randomly generated and tickets that match the sequence win the prize fund or a part of it.
Three types of lottery games are offered by FireLotto: 6/45, 5/36 and 4/20. Players can also opt for an instant lottery game that plays very much like a wheel of fortune, picking a result instantly from 21 numbers. This instant game has a minimum starting bet of 0.007 ETH with a prize multiplier ranging from 2 to 20.
FireLotto token (FLOT) holders benefit by earning a commission from every ticket sold in a particular draw. Commission payouts are executed automatically via smart contracts, essentially giving passive income to token holders indefinitely.
With a minimum jackpot of 300 ETH (almost $300,000 at today’s rate) for the 6/45 lottery, FireLotto offers the chance to win big. Users can now test out the lottery in Ethereum test net.
Unlike most projects launching crowdfunding campaigns, FireLotto already has a working product and is raising further funds to assist with expansion and further roll out of new developments. After a private pre-sale that ended on January 15, 2018, and a pre-sale that ended on February 15, 2018, the general FLOT token sale will now run from March 15, 2018 to April 15, 2018.
100 million FLOT tokens will be issued, of which 77 million will be sold to the public.