How to Build Blockchain Lottery: Step-By-Step Guide

 In Technology

The lottery is a favourite entertainment of many people, which has no correlation either in favour or in terms of benefits among gambling.

In developed countries on average, every second person participates in lotteries on regular basis. In some other countries like India, this number can go higher and can reach up to 80 to 85 percent of the total adult population.

However, in a spite of this popularity, this industry has several serious drawbacks that concern every player:

  1. The issue of fair play – No one can give a guarantee of the fairness of the draw, neither state authorities nor any independent auditors, which sickens millions of conceivable players from the lottery.
  2. The issue of collecting winnings – Collecting of winning amount or prize is another issue or concern of every player. There is no guarantee about the time span or any type of bond to get the winning prize.Even if you win the lottery, it can take several years to get the full amount of the prize and with this winner have to pay several taxes and charges on the winning amount, which can take nearly 50 percent of the winnings.
  3. Limited Access – In many countries, there are problems with banking systems that become the hurdle to purchasing lottery tickets.

Blockchain is an advanced technology and currently the only technology which has ability to solve all these problems. Using bitcoin technology we can create a transparent and honest forum for executing online lotteries around the world.

Let’s see the steps to build a blockchain lottery

Step 1: Development from Scratch or Franchise

Entrepreneur solely has to decide to start a business from a scratch or buy a franchise and what goals it needs to go completely depend on the entrepreneur itself.

To develop the lottery platform the first thing to remember is it will require a lot of time, effort, and cost. Start all things with the unique approach, these all things will allow you to get full access to the development process and the product created.

All these control and approach will help you to launch your franchise.

Franchise – Without starting from scratch, buying a ready-made solution can be a good decision to start a lottery business quickly for relatively minimum money without bothering about a license.

If you mind taking a franchise, make sure to choose the right and the best franchise to fulfil all needs of your business. Do the proper research on all advantages and disadvantages of the franchise, check as many as a franchise needed to choose perfectly.

Some of the Popular Lottery Platforms.

Fire Lotto –
The world’s first global blockchain lottery with a genuine and transparent system of managing bets, RNGs and the allotment of winnings.

Samsara Protocol –
This allows you to create lotteries with supportable truthfulness and random play through the intelligent contracts of the Ethereum blockchain.

Quanta –
Technology for fast, comfortable and complete integration of the blockchain system for the lottery in the platform.

Step 2: Lottery Concept Development

Lottery concept – Lottery is a systematised game, where more than two participants buy tickets, make bets on them and guess the upcoming result of a random selection of several numbers or characters or signs or images and if the result comes as guessed they will win a previously agreed price for it.

While creating the blockchain platform for the lottery, you have to keep in mind about several things and have to plan it likewise.

The few things you have to think about and have to plan it likewise are that determine the sizes of bets and the winning prizes, with this you need to also determine about the number of participants and the pool from where the random numbers will be selected for the guessing purpose.

The required license type usually depends on the choice of the size of bets and winning, and the technical task for designing smart agreements relies on the scheme.

Game session design – The traditional lottery looks quite simple where the player gets a ticket and where you have to select or specify some several numbers.

After this, the random number using one of the RNG options is selected. Online lottery can be as simple as this but not necessarily.

In the online lottery, you can make an exciting game with the vivid animation, imaginary rivals, and even a plot in the way that online slots made from a simple one-armed bandit.

UX / UI design – If you have a general idea and a basic concept of the gameplay, you can create the designs and the maps of the lottery app screens, like how it will be look like to a player who enters to play.

For doing all this you can hire a specialist who can do it for you and who understands the usability and what exactly the user needs. It will be more expensive, but the result will be much better.

These UI / UX you have to design by keeping in mind that the user can open it on the web and as well onto the mobile applications.

As the usability and the process of playing for these two platform are completely different, design the screens similar but not identical.

Step 3: Lottery License

Lotteries required a proper government licence in many countries. The type of license and the process to follow can be varied from country to country.

If you doing a business in many countries, you have to obtain a license for each country otherwise it will be claimed as a illegal. While obtaining the license you have to follow the procedure as per the local laws.

The some countries have the very strict rules regarding the lotteries and for obtaining a license for those particular countries you have to follow the local rules.

There are many types of licenses available and some countries have small lotteries licenses to big lottery licenses in which you have to mention the amount of the overall lottery you are going to play and based on that they issue a license to you.

Step 4: Lottery Website Development


If you have decided to take a franchise lottery then you don’t have to think about all these and can move to the next steps. Like the lottery, you are taking a franchise from provides you all these things.

In such case, the time and effort of your saved dramatically and the franchise provides you with the web and mobile application by keeping in mind about the customer requirement.

There are certain things you have to keep in mind for the online lottery about security. The security is the most important part of the online lottery as anyone can hack your system and present results as they want.

Following are the few things you have to think about first.

  • Protection against interrupting or interfering with the lottery;
  • Personal and financial data of users Security
  • System development protection from hacking, phishing, DDoS attacks and more;
  • Development/connection of the system of protection (encryption) of the connection between the service and the user’s device.

While doing development from scratch you have to think about each and every aspect of the application and need to make it more better for you.


Design is the most important aspect of the overall application. You have to make a good design that makes a good impression on the user and the user also loved while handling it.

Remember the first impression is the most important and many things depend on it and the user decides whether to play a lottery or not.

In several surveys, it is also noticed that some users decide whether an application is trustworthy or not on basis of its design, look and feel.

Create a design which focuses mostly on your targeted audience. Many people have their own choice regarding the colours, look but you have to choose which will be suitable for all.

Step 5: Develop HD Wallet

Use the hierarchically deterministic wallet, as it allows to unspecified the cryptocurrency transaction and protects it against a loss of access to the crypto account.

When the key file is broken or stolen or lost the HD wallet protects it. There are many benefits of HD wallets, let’s see the few.

Benefits of HD Wallets:

  • Increased level of anonymity – While depositing or withdrawing the HD wallets permits you to hide the crypto address of the particular user, It allows you even if this information is open in a particular blockchain like Bitcoin.
  • Seed-phrase is best remembered – Unlike the standard method of keeping all public and private keys, the secret phrase of 12 or more words is better recognised and gives access to all “child addresses” at once.
  • Easy backup – Using only one master key all your “child addresses” can be easily and rapidly restored. Even after the removal of the HD wallet distribution kit, the ability to restore it remained.

Step 6: Developing Lottery Smart Contracts

As the “Putirty” of the lottery depends on the transparency, quality, and honesty of the players and licensing authorities, smart contracts are the main thing that checks these players and licensing authorities.

Make sure to create a smart contract with an open-source code for the lottery platform, as because of that anyone can check it and can make sure your platform is fair or not.

There are many ways to do so, let’s discussed a few of them below:

1. As the contract code for the regular lottery is not that much complicated. By yourself the best solution for those who have a great experience in to the programming and blockchain technologies.

If you are skills are not that much better and you don’t have those skills it is better to go for another option and reach someone who is a master in this work.

One thing you need to keep in mind is that any mistake in this will be a threat to your lottery reputation, license, and lawsuits. Moreover, this if the court found that the error into the smart contract is intentional you can be imprisoned for the same.

2. You can also use a ready solution, now a day there are many ready solutions available that give you a better solution without wasting an time and effort.

With these ready solutions, there are many ready free smart contracts available for various lotteries which can be distributed as a open-source software.

These options might be save your time to develop the smart contracts but not much as you have to integrate these smart contracts into your system. For doing the same you might need a professional specialist.

Step 7: Mobile Application Development

Now a days everyone has a smartphone in hand and as per the survey, it is noticed that the use preferred the mobile application more than a website including to get participation in the lottery draw.

Therefore focuses more on to the development of mobile applications based on the blockchain for the lottery.

While creating the mobile application you have to follow some criteria like to app should have a good design and a more easy navigation inside.

Use must have to understand easily the basic things like how to register, deposit money, place a bet, receive a prize and receive reference information.

Make sure to include or to have a convenient lottery block like a Betting, Start, Payment gateways, history, favourites and many more.

Include a push notification, with the help of that the user will receive messages about the result of draws, promotions, important updates, news and many more.

The application must have an information or help section where the he can read an instructions regarding the lottery.

You can create a mobile application by yourself or by getting a ready-made solution or by hiring any development company.

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

Once the programming is ready and all elements of the system is created, all you have to do is thoroughly tested.

While doing this you to do the most important work is to submit smart contracts and HD wallets for the inspection by independent auditors.

These all things are important for both you and the player as it will detect any critical error during the testing and also it will show the user whether you can trust your platform or not.

If we take an example, in the past Kibo blockchain lottery hire the one of the companies to audit their smart contracts.

The result of the Kibo check was the generally satisfactory but the auditing company found some non-critical errors in the code.

Now, if the Kido had not hired the auditing company mostly these errors would have remained without solving them in code. As a result of that, it could be caused by crashes or hacker attacks probably.

Step 9: Develop Marketing Strategy

Once your lottery platform is developed the next thing you have to concentrate on is the Marketing strategy. Having the advertising and promotion strategy for the lottery on the internet is rather common.

Set your target audience, what bloggers read and watch it, see what resources it visits and based on all this information set your advertising strategy.

The contrast is that the lottery is a gamble and risk, which means that:

  • The information about the accessibility of appropriate licenses and about where, when and by whom it was issued to users need to be aware.
  • While setup the advertising strategy make sure that to avoid the countries where the lottery or any type of gambling is prohibited.
    Many online platforms, resources, and platforms found these gambling or lottery as illegal or wrong and therefore they restrict or prohibit these from advertising associated with them.
  • Many people take participate in the lottery enthusiastically and don’t take the lottery as a game of luck or chance. The important aspect is that the advertising of the lottery is not directly associated with gambling.

Step 10: Starting the blockchain lottery

Launch your blockchain lottery platform in such a way that most of the people are aware of that and in waiting for the event.

You can achieve such by doing a large scale of digital marketing or marketing campaign which begins long before the launch of the platform itself.

People can be attracted to the product or service by the many things without a doubt marketing is one of that things, let’s discussed the more factors of the same.

  • Marketing influence – Now a days, many people choose a social influencer to promote and advertise their product or service. You can choose a social media platform having a subscriber of more than a 3 to 20 thousand.
  • Promotions, bonuses, discounts and more – Give a bonuses and discounts at the start in a large matter to attract as many people as possible. Promotions with the help of discounts, and bonuses may be attract large audiences.
    Live broadcasts – It is the new way to promote the products and services now a days, especially sports betting is promoted in large ways.
  • Fundraising marathons – You can start a lottery with the proceeds of good things like charity, veterinary clinic, financing a research project, and many more. Which can be a master stroke to attract the many users.
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