How Crypto Lotteries Work
- Players enter and choose numbers
- Lottery states the blockchain and the winning rule in advance
- The next block is mined (public event)
- Winning digits are taken from the block hash
- Anyone can verify results publicly
Explained in very simple words
- The lottery site clearly states which blockchain it will use (let’s say it will use the Bitcoin blockchain).
- Bitcoin creates a new block about every 10 minutes.
- Each block is publicly visible.
- Every block has a unique hash ID.
- The lottery site defines which digits are the winning combo (for example, the last 6 digits).
- The user buys a ticket from the site choosing their own numbers.
- A draw is made every 10 minutes (duration for a new block to be created).
- The user can check results when the draw is made either on the lottery site or any public blockchain site.
If you win:
- Automatic payout
- Direct to your wallet
- No middleman
- No hidden cuts
Why blockchain makes this fair (simple example)
Imagine the lottery uses Bitcoin as the winning blockchain source.
A new block is mined about every 10 minutes. A new hash ID is associated with it, and you can see it on public sites (including blockchain explorers).
If the lottery chooses Bitcoin as the winning hash ID method, then it can say:
- We will use the next Bitcoin block.
- The last 6 digits of that hash ID are the winning number.
Everyone can check the result publicly on any site. That’s what we mean by the winning number is chosen by the blockchain.