Blockchain firm Dragonchain has announced a new contest system, which they claim is "provably fair."
Dragonchain founder and CEO Joe Roets told Cointelegraph on June 25 that the firm has developed a blockchain-based contest system that allows participants to verify its fairness. It can be used for lotteries, raffles, sweepstakes and contests of skill.
Rotes said that crypto exchange Beaxy has already adopted the system for its trading and promotional contests, and that Dragonchain was already in talks with various parties who wish to use the system in casinos, for sporting event giveaways, and charity raffles.
The firm plans to demonstrate the system in a contest with a $50,000 prize as part of the upcoming “Open Source Money” documentary series about Dragonchain, that airs on U.S cable TV channel Discovery Science on July 4.
Blockchain-based auditable contests
Roets explained that every participant in a contest submits an entry, and an on-chain mechanism selects the entries:
“For selection, the system uses future hashes of a predefined block height of Bitcoin and Ethereum. The combined hashes are used to select the winner based on an algorithm. It is not possible to know the hash of a block height of any one blockchain, thus making it nearly impossible to profitably game the system.”
Roets claims that the on-chain transparency of the process allows users to verify whether the contest was fair and that the results are accurate. He explained that anyone can view the blocks associated with the entries and the selection process.