There has been an increasing level of excitement about the cryptocurrency ecosystem and the opportunities it creates for people. Now, Lumenswap has introduced the first fully transparent, decentralized lottery model built on the Stellar blockchain, and this article is all about taking advantage of this great opportunity.
This lottery model is fully transparent and decentralized, making it one that is very much different than traditional lotteries through providing a fair chance of winning for all.
What is this Stellar based lottery?
This model is pretty much similar to traditional lotteries in a sense that you need to buy a ticket to enter the lottery within a set timeframe and you will gain a prize if you win.
Now, the difference is that the ticket will be digital, the winner will be chosen in a decentralized process, and the prize will be pegged to the equivalent value in XLM.
How will all this make a difference?
Well, on this distributed network, there are immutable records of all that happens. This is a transparency inherited from blockchain technology, creating a fair and accessible lottery platform, which is very different from traditional lottery models.
Participating in the lottery
For each round of the lottery, Lumenswap will independently set ticket prices in a way that would be affordable for anyone with any financial capacity.
While each round is open, you may buy as many tickets as you want.
The process of purchasing tickets is quite simple and can be done with just a few clicks. But the whole process can be summarized as transferring your LSP to the address GAB7…24WK (through the interface or manually), and the transaction hash would be your ticket ID.
The interesting point is that where you send your LSP is the contract address and all pooled LSP will be removed from circulation, which means every lottery round is in a way a token-burning mechanism.
Anyhow, Round 1 of the lotteries is up from Oct. 22 until Nov. 22 (37922526 Ledger → 38405815 Ledger). The Prize is the equivalent value of a Tesla Model S ($100k) sent to the address of the winner in XLM. The price of each lottery ticket is 1 LSP. Finally, the goal ledger is 38405816, which means the winner will be determined in this ledger number.
You can either purchase tickets on the Lumenswap’s platform one by one, or buy multiple tickets at once by logging in with your private key.
You can also purchase tickets through other wallets and clients by sending 1 LSP for each ticket to the following address:
Note: The auction client for this lottery is Horizon, which has set the request limit to 3600 requests per hour for each IP. Considering this situation, you would better limit your hourly ticket purchases to 1000 to avoid IP blockage by Horizon.
Choosing the winner
Lumenswap specifies a ledger/block number on Stellar that will be generated about 30 days after the start of the round, at the beginning of each round.
By creating this specific ledger, the winner selection mechanism starts working by comparing ticket hashes to the ledger hash to find the longest matching substring.
This comparison will begin with the first character of the ledger hash and that of ticket IDs, and only the matching hashes proceed to the next step where the same comparison occurs between the second characters of ledger hash and that of ticket IDs, and so on. The winner is that single ticket ID which remains after all these elimination steps.
This process can easily be demonstrated with an example:
Assume there are three tickets for one round:
And the ledger hash is:
Here, the first character of the ticket IDs and that of the specified ledger hash are compared. As you can see, only the first character of T2 and T3 are the same as the first character of the ledger hash — unlike T1. So, T1 is removed. Now, the same process is repeated for the second character of the hashes. T2 has the same second character as the ledger hash, as opposed to T3. So, Ticket 3 is eliminated, and T2 wins the lottery.
The transparency and decentralized nature of this lottery model has created a great opportunity for those interested in the exciting world of lotteries who could enjoy a fair process of testing their luck.
Round 1 has started!