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08 February 2023

How to Build Blockchain Lottery: 10 Steps to Success

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Lottery is a favorite entertainment of many people, which has no analogues either in popularity or in terms of profitability among gambling. On average, every second person in developed countries regularly participates in lotteries. In some countries, for example in Spain, this figure is even higher and can reach 80% of the total adult population. However, despite this popularity, this industry has a number of serious flaws that worry every player:

  1. The problem of fair play. Neither state authorities nor independent auditors can guarantee the fairness of the draw, which repels millions of potential players from the lottery.

  2. The problem of collecting winnings. If you win the lottery, it can take up to 10 years to get the full amount of the prize. In this case, you will need to pay various fees and taxes, which can take up to 50% of the winnings.

  3. Limited access. In many countries there is a problem with the purchase of lottery tickets due to the lack of access to payment or banking systems.

Blockchain is currently the only technology that can solve all these problems by creating a transparent and fair platform for conducting online lotteries around the world. Next, we describe how to create such a blockchain platform.

Step 1: Development from scratch or franchise

Development from scratch. Starting a business from scratch or buying a franchise is a decision that depends solely on the entrepreneur and on what goals he sets for his company. In the first case, the development of a lottery platform will require a lot of time and effort and will cost much more. However, this approach will allow you to implement a unique solution, as well as allow you to retain full control over the development process and the product created, which is important if you intend to launch your franchise.

Franchise. Buying a ready solution, on the other hand, would be a good decision if you plan to start the lottery business quickly and for relatively little money, and you do not want to suffer from licensing. If you follow this path, make sure that the chosen franchise best suits the needs of your business. Call as many franchise providers as possible and conduct your research on their advantages and disadvantages.

White label lottery blockchain platform solutions provide:

Step 2: Lottery Concept Development

Lottery concept. Lottery is an organized game where three or more participants make fixed bets (buy tickets) in order to guess the result of a random selection of several numbers (characters / signs / images) and get a previously agreed prize for it. When creating a blockchain platform for the lottery, you need to determine the sizes of bets and winnings, and also decide how many numbers the participants will guess and from which pool random numbers will be selected for guessing. Common layouts: 4x20, 5x36 and 6x45.

Multiple lottery options on Fire Lotto blockchain platform

The type of required license usually depends on the choice of the size of bets and winnings, and the technical task for developing smart contracts depends on the scheme.

Game session design. The traditional lottery looks quite simple: the player gets a ticket, where you need to select / specify several numbers, after which random numbers are selected using one of the RNG options. Online lottery can be just as simple, but not necessary. From it you can make an exciting game with vivid animation, imaginary rivals, and even a plot in the way that online slots made from a simple one-armed bandit.

RoBoom is one of the first online lotteries, implemented as a game with animation and storyline

UX / UI design. Having a concept and a general idea of the gameplay, you can begin to develop the design and maps of the lottery screens - how it will look like for an ordinary player. To do this, it is best to hire specialists who understand the usability and user needs. It will be more expensive, but the result will be much better.

The scheme of the lottery on the blockchain for the user and operator in the Samsara Protocol

You need two UX / UI designs: for the web interface (site) and the mobile application. They should be similar, but not identical, because usability and the process of playing on these two platforms is different.

Step 3: Lottery License

Most lotteries require licensing in government. In the US, the type of license required and the process for obtaining it depends on the state. In other countries, such as the UK, are issued national licenses that allow lotteries throughout the state. British licenses allow you to run one of four types of lotteries:

If you create a small lottery among the workforce, a small sample of customers in a campaign, at school and charity events, then you do not need to get a license (in the UK).

Step 4: Lottery Website Development

Requirements. If you choose a franchise lottery, then creating a website does not take much time and does not require much effort, since the entire lottery background is usually on the side of the franchise provider, and you only connect to it, less often - you are given a ready-made background that you customize needs. By and large, you just have to develop a design and take care of safety.

Under the security of the lottery online platform is meant:

When developing from scratch, all this needs to be done independently.

Design. One of the most important aspects of developing a platform for an online lottery, since the user's first impression depends on it and whether he agrees to play the lottery on your site. It is best to create a design with a focus on a specific target audience, because users have different and often conflicting tastes. For example, people 50 years and older prefer a simple and concise design, while millennials prefer bright colors and animation.

Step 5: Develop HD Wallet

A cryptocurrency wallet is needed to accept bitcoins, ether, EOS and other virtual money from players and pay winnings to winners. It is best to use HD-wallet (hierarchically deterministic wallet), since it allows anonymizing cryptocurrency transactions and protects against loss of access to a crypto account when a key file is lost, broken or stolen. Armory, Electrum, BitGo, TREZOR and other popular hierarchically determined wallets.

Benefits of HD Wallets:

Step 6: Developing Lottery Smart Contracts

Smart contracts are the main thing that licensing authorities and players check, since the "purity" of the lottery depends on their transparency, quality and honesty. Ideally, you need to create a smart contract with an open source code for the lottery so that anyone can check it yourself and make sure your platform is fair.

There are several ways to do this:

Step 7: Mobile Application Development

Blockchain Lottery mobile app interface

According to Flurry Analytics and comScore, most Internet users prefer to use mobile applications rather than websites. Including for participation in the lottery draws. Therefore, creating a lottery based on the blockchain, you must necessarily devote a significant portion of time and resources to developing your own mobile application with the following criteria:

As in the case of developing a smart contract or website, you can create a mobile application by yourself, using ready-made solutions or hiring a development company. Some white label solutions come bundled with a mobile application that is almost ready to launch. To start it, you need to adjust the design a bit, determine the lottery conditions, ticket prices and winnings.

Step 8: Testing the site, wallet, applications and smart contracts

The result of the audit of smart contracts lottery KIBO, made by experts Hosho

After the program code of all elements of the ecosystem is ready, all this needs to be thoroughly tested. At the same time, the most important elements - smart contracts and HD-wallet - need to be submitted for inspection by independent auditors. This is important both for you (it helps to detect critical errors) and for the players (it will show whether you can trust your platform or not).

As an example, you can take the Kibo blockchain lottery, whose team agreed with Hosho (the leader in security of the blockchain) about auditing their smart contracts. The result of the Kibo check turned out to be generally satisfactory, but there were some non-critical errors in the code. If Kibo hadn’t hired Hosho, then most likely these errors would have remained in the code, which could have caused crashes or hacker attacks.

Step 9: Develop Marketing Strategy

Advertising and promotion of the lottery on the Internet is pretty standard, except for some moments. As always, you allocate your target audience, see what resources it visits, what bloggers it reads and watches, and then use this information to promote your project.

The difference is that the lottery is a gamble, which means that:

Step 10: Starting the blockchain lottery

The launch of your blockchain lottery must be organized in such a way that thousands of people are waiting for this event. They do this with the help of a large-scale and rather expensive marketing campaign, which begins long before the launch of the site itself.

People are attracted by the following things:
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