Blockchain lottery provider Winchain OS recently announced that it has sold the world’s first blockchain-based national lottery ticket. CryptoGamblingNews.com caught up with Winchain OS co-founder Charles Song to find out more.

Please could you introduce WinToken and Winchain OS to CryptoGamblingNews.com readers?

I believe most CryptoGamblingNews.com readers must have heard various of lottery scandals such as rigged jackpots. These scandals make many of us skeptical about the fairness of the lotteries, not just online lotteries, but even lotteries operated by states.

Fully aware of the challenges faced by today’s lottery systems, we are starting to apply blockchain technology to the online lottery which we have been working on for the last 10 years. This resulted in the development of the Winchain operating system, known as Winchain OS, a decentralized lottery technology platform that pulls together blockchain, mobile payment and state-of-the-art lottery technology in a unique way.

As with most blockchains, Winchain OS has its own cryptocurrency called WinToken. WinToken is traded on cryptocurrency exchanges including OKEx and Coinmex. As a utility token, WinToken serves as an access token that lottery operators must hold and put a certain amount of WinToken into custody in order to access the lottery system powered by Winchain OS. Holders of WinToken have the right to comment and vote on major community issues such as game election and overall system settings, many of such features – and the transparency & openness behind them – simply do not exist in centralized lottery systems.

What is the team behind the project?

The developers behind the project are mostly from Victory Game Challenge Inc., short named VGC.

Headquartered in Silicon Valley, VGC is made up of blockchain and lottery developers as well as lottery experts. Taking the US Powerball lottery as the benchmark, and other than providing the services and underlying technologies of blockchain-based lottery system to global lottery operators, VGC has adopted an Africa-first strategy, that is to obtain national lottery operating licences in African countries, to establish an African multinational lottery prize pool, and ultimately promote the healthy development of the lottery industry in Africa.

In order to supervise and promote Winchain OS development and its ecosystem, and to coordinate industry resources and make sure both the technology and its idea of openness and transparency are widely accepted as global standard, the Winchain Open Source Technology Foundation, a non-profit organization was setup and commissioned as the main operating body of the Winchain OS, to fulfil our purpose.

You have signed three deals for lottery licences, including one in Uganda where you will be operating the world's first blockchain lottery. Please could you tell us some more on these deals and how this is progressing?

Yes, working closely with our local partners in Africa, blockchain based lottery systems powered by Winchain OS have been granted lottery operating licenses in 3 Africa countries so far. One of them being Uganda where we work closely with our local partner Mobile Lotto Ltd, to push the technologies into real-world application. I am happy to share with readers from CryptoGamblingNews.com that on April 12th 2019, Mobile Lotto’s first lottery ticket was issued and sold in Kampala, the capital city of Uganda, this is the world’s first blockchain based national lottery ticket being sold.

We took a photo of ticket and the person who bought the ticket (above). I believe this photo deserve a place in the history books!

Regarding which African country come to the next, I would rather keep it as a secret for now, until the day when Winchain OS powered lottery tickets are officially issued on the country! But I would like to say this, Africa is experiencing rapid population growth and the mobile technology is evolving rapidly, we believe there is a great chance here for Winchain OS to reshape the lottery industry by offering full transparency and fairness in all aspects of our operation.

Without the technology that can truly bring trust and fairness into the digital arena, online lotteries can never grow into mainstream adoption.

Charles Song

Co-Founder, Winchain OS

Could you overview your platform, product features, and upcoming roadmap?

In contrast to centralized lottery systems where so many closely guarded “secrets” exist, a decentralized lottery platform powered by Winchain OS simply allows for maximum transparency.

For example, the non-inspectable process of “how winning numbers are drawn at exactly what parameters” are replaced with smart and self-executing contracts that are openly inspected before built into the transaction since day one. This ensures all participants understand no one can predict or alter the results without the consent of the majority, and keep track of exactly how their money is being pooled, how many players exist when the pool is ending, how the number drawing is being randomized from unknown blocks, what percentage of the pool the organizers keep for themselves, and how privacy is upheld whilst compliance regulations are all met.

Another important feature is that Winchains OS adopts a hybrid blockchain solution. It combines both blockchain and consortium blockchain in a unique mainchain + sidechains setup, where the mainchain, or the consortium part of the hybrid solution is used for transactions among game developers, resellers, auditors and other third-parties. It has a classic permissioned setup, where parties can view, transact, get rewards and make changes based on permissions they were given. This network is fast, scalable and secure, the cost of transaction is also low. However, adding more parties and establishing their trust takes longer than on a public blockchain.

The sidechains, or the public part of the Winchain OS, allows any players to buy lottery tickets and put bets on a public network, with an easier process of trust establishment. Because public blockchain is completely open and decentralized, more people can participate in the lottery for prizes or rewards and they can be rest assured that the lottery they are playing with cannot be rigged, tampered, or cheated without consensus of the majority. Like our LuckyWin product, Uganda’s blockchain based lottery operated by Mobile Lotto, is another sidechain attached to our mainchain. This sidechain uses stablecoin backed by Uganda Shilling as its utility token to support the sells, commission and payment of the lottery tickets.

In terms of what’s next, based on the Winchain Proof-of-Authority consensus mechanism, we are planning to launch the sidechain master node election campaign. This will enable WinToken holders to not just electing his trusted master nodes on the sidechain, but also benefiting directly from each and every reward generated from master nodes performing block verifications according to how much WinToken has been put into custody. This will allow our token holders enjoy direct revenue share from the rapid growth in the African lottery market, no matter which country he/she is from.

In the meantime, we continue to develop our technology and keep moving forward our initiatives in other African countries, particular in the product development and go to market side. Blockchain based lotteries operated on national level are very different from typical decentralized applications, it will take years of efforts and we are committed to make it happen.

How big an opportunity is there for blockchain technology with the lottery sector?

Lottery is not just the sixth largest industry in today’s world but also one of the oldest industries we know. However, rigged jackpots and scandals that are too commonly heard have made many of us skeptical. This is the single largest threat to today’s lottery industry when lottery tickets sale is moving towards online just like everything else. And because blockchain is such a technology that bring trust into the trustless environment, we believe it is well positioned to revive the 2,000 years old industry in the digital age in terms of fairness, openness and transparency. Simply put, without the technology that can truly bring trust and fairness into the digital arena, online lotteries can never grow into mainstream adoption.

In a detailed blog post, FunFair discussed at length the challenges to onboard users to dApps.

“We can see plain as day where we lose people in the onboarding funnel, and much of the time it’s very early – at the start – the moment they’re asked to download a Web3 browser or wallet and to create an Ethereum account,” the team said in the post.

“We believe we could reach a lot more users for our dApp if there were far lower friction, no requirement to download or install anything new, and a UI that had a much more comfortable learning curve.”

To tackle the problem, the FunFair has spent almost a year building “an easy to use wallet that targets this significant onboarding friction”.

The result is the FunWallet, which FunFair says will run “in any web browser inside an iFrame, on any device, mobile or desktop, Safari or Chrome” and requires no plugin, download or install. In other words, users will be able to easily log into their FunWallet from their phone with an email and password.

Want to put your brand in front of thousands of crypto gamblers, traders and industry professionals?

Get in touch to partner with CryptoGamblingNews.com.

And while you are here, follow CryptoGamblingNews.com on Twitter and join the conversation at Telegram.