For most people it seems foolhardy to invest in a digital currency that is hardly regulated. One might say it’s practically like throwing money away. And so a common practice of defi projects is to give their tokens utility. The better the utility of the token, the more legit it seems.

Beyond tokens and the tokenization of physical assets, another trend is the digitalization of traditional finance. In this time and day, you can secure a loan in crypto, play games on the blockchain and even secure a digital identity saved on the blockchain. Another traditional concept that has now been digitalized and adapted to the crypto industry is a lottery. So what is crypto lottery, how does it work, and what platforms offer crypto lottery services? We discuss all that in this article.

What is a Crypto Lottery?

When the average person thinks of the word lottery, they think of tangible things like lottery tickets, numbers, and raffle machines. But when you add the word crypto to the lottery, not too many images come up. Cryptocurrencies are digital currencies supported by cryptographic and blockchain technology. So, if crypto is digital money, it follows that crypto lottery means digital lottery available on the blockchain.

Crypto lottery is then the blockchain’s version of a traditional lottery game, so instead of fiat currency, you have a crypto like Bitcoin or Ethereum, and instead of physical lottery tickets, you have a digital one. Crypto lotteries are characterized by blockchain technology because these applications exist on the blockchain, and they guarantee fairness with cryptographic technology like smart contracts.

How Does a Crypto Lottery Work?

Whether it’s a crypto lottery or a traditional lottery, the foundational concept remains the same. Buy a ticket to participate, and if your ticket matches the randomly selected numbers, you win.

Regardless of all these similarities, the technology behind the crypto lottery puts it miles ahead of its traditional counterpart. Perhaps the most impressive technological feature of a crypto lottery is the use of smart contracts and provably fair technology in generating winning tickets. Provably fair here refers to an algorithm in online gambling that guarantees transparency and fairness in selecting the winning tickets.

By incorporating provably fair technology into smart contracts, online crypto lottery platforms ensure that the process is not only automated but it is also entirely random. The winner isn’t selected by any parameters but is entirely random and determined by the outcome of mathematical and cryptographic algorithms.

Another innovative feature introduced by online gambling is the transparency and privacy of the process. Like most other blockchain platforms, crypto platforms do not request their user’s data. Each player is entirely anonymous, and each transaction (ticket purchase, winning draw) is recorded on the blockchain and available for public access.

Best Crypto Lottery Platforms for 2024

There are many platforms on the blockchain offering gambling and lottery services. Here’s a carefully selected list of the best crypto lottery platforms.

BTC Lottery

Built on Polygon, BTC Lottery is a decentralized gaming and lottery platform that provides blockchain users with a secure with secure games, lotteries, charities, and giveaways. At its core, the platform leverages the power of Chainlink to ensure randomness, automation, and seamless cross-chain interoperability. BTC Lottery is available across seven networks, including Ethereum, Polygon, Binance, Avalanche, Optimism, Arbitrum, and Base, catering to a diverse audience with support for various defi wallets.

The platform provides four sets of raffle games: 20-player, 10-player, 5-player, and 2-player. Each category is uniquely designed, offering different probability levels and pricing to suit various preferences and strategies. To participate in the raffle games, players need to first connect their wallet to the platform and buy tickets using $MATIC, so players need to fund their wallets with sufficient MATIC tokens.

The platform maintains transparency and fairness by charging a flat 10% fee across different player sets. Specifically, the 5, 10, and 20-player raffle draw awards 2, 3, and 4 winning tickets, respectively. All wins are deposited directly to the dashboard and players can easily transfer to their wallet by claiming the prizes.

Lottoland

Lottoland is a centralized gaming and betting platform that offers a Biitcoin-based lottery which is based on Bonolotto, a 49 lottery draw that occurs every weekday and Saturday in Spain. The Bitcoin lotto offers a top-tier prize of 60 Bitcoins and a second-tier prize of 1 Bitcoin, with the option to take a cash equivalent. Notably, winners have the choice of claiming their prize in Bitcoin, calculated at the Bitcoin value at 9:30 pm (CST) on the winning day, or opting for a cash equivalent.

Participating in Lottoland’s Bitcoin lotto is straightforward: select six numbers ranging from 1 to 49 and purchase your ticket. Priced at €3.50, each ticket’s cost is subject to adjustments based on Bitcoin’s value at the time of each draw. Despite the high stakes, with jackpot odds at one in 13 million, the thrill of the game surpasses even the most popular multimillion-pound jackpot draws.

Lottoland offers six prize tiers for users who match anything between 2-6 numbers with the winning numbers. The odds for each tier range from 7.6 to 13,983,826 and the prize payout is from €1.50 to 1 BTC and then 1000 BTC.

PoolTogether

PoolTogether is a decentralized Ethereum-based platform that takes a unique position with its no-loss concept. The no-loss concept works by depositing crypto in a shared pool, allowing users to earn interest on their deposits. The platform also offers weekly random draws and awards prizes proportional to your contribution.

It guarantees fairness with support from Chainlink’s oracle and verified smart contracts. Other features contributing to the platform include prize pools, a no-loss concept, and multiple prize pools to fit varying risk profiles.

PoolTogether is powered by ERC-20 tokens, USDC, and DAI. Users can deposit their tokens into a chosen pool with the user’s preferred risk profile and collect their awards each week.

Lucky Block

Lucky Block takes the centralized approach, offering traditional lottery draws with a crypto twist. Their native token, LBLOCK, grants entry to various draws for enticing prizes like luxury homes, NFTs, and hefty Bitcoin jackpots.

Regular draws keep the adrenaline pumping, while an exclusive NFT collection and gamified elements add layers of excitement. To ensure your trust, Lucky Block employs RNG Fortress, a provably fair random number generation system, and undergoes regular security audits.

Conclusion

As you embark on your crypto lottery journey, remember to navigate with prudence. Prioritize platforms with robust security measures and rigorous audit histories. Seek assurance in provably fair random number generation, and remain mindful of potential regulatory hurdles in your jurisdiction. Most importantly, practice responsible gambling, setting spending limits, and prioritizing fun over financial risk.