[Paper Review] DeLottery: A Novel Decentralized Lottery System Based on Blockchain Technology

Zhifeng Jia, Rui Chen+1 more|arXiv (Cornell University)|Nov 6, 2019

Gambling Behavior and Treatments4 citations

TL;DR

DeLottery proposes a blockchain-based decentralized lottery system leveraging smart contracts and the RANDAO-inspired random number generation protocol to ensure fairness, transparency, and security. The system is implemented on a blockchain network, demonstrating functional operation and resistance to manipulation through cryptographic verification.

ABSTRACT

In this paper, we design DeLottery, a decentralized lottery system based on block chain technology and smart contracts. Lottery is a classical form of entertainment and charity for centuries. Facing the bottleneck of the combination between lottery and information technology, we use smart contracts and blockchain in decentralized, intelligent, and secure systems for lottery industries. Moreover, we are inspired by the algorithm of RANDAO, an outstanding way of random number generation in blockchain scenario. The components and the functions of the novel system are described in details. We implement DeLottery in a blockchain network and show functioning procedure and security of the proposed lottery system.

Motivation & Objective

• To address the lack of trust and transparency in traditional lottery systems by leveraging blockchain technology.
• To design a decentralized lottery mechanism that ensures fairness through cryptographically verifiable randomness.
• To implement a secure, automated lottery system using smart contracts that eliminate reliance on centralized authorities.
• To demonstrate the feasibility and security of the proposed system through implementation on a blockchain network.

Proposed method

• The system uses smart contracts deployed on a blockchain to manage lottery operations, including ticket purchase, draw execution, and prize distribution.
• It adopts the RANDAO protocol as a foundation for generating verifiable random numbers in a decentralized manner.
• Participants contribute to the randomness pool by submitting commitments, ensuring no single entity can manipulate the outcome.
• The system ensures transparency by publishing all transaction data and randomness generation steps on the blockchain for public verification.
• Security is enforced through cryptographic hashing and the use of a commitment-reveal model to prevent front-running and bias.
• The implementation is tested on a blockchain network to validate correctness, performance, and resistance to collusion or manipulation.

Experimental results

Research questions

• RQ1 How can a decentralized lottery system be designed to ensure fairness and prevent manipulation?
• RQ2 What role does verifiable randomness play in enhancing trust in blockchain-based lotteries?
• RQ3 Can the RANDAO protocol be effectively adapted for a full-fledged lottery system with practical usability?
• RQ4 How does the integration of smart contracts improve transparency and reduce reliance on centralized intermediaries?
• RQ5 What are the security and functional properties of a blockchain-based lottery when deployed in a real network?

Key findings

• The DeLottery system successfully implements a fully decentralized lottery using smart contracts and blockchain, ensuring end-to-end transparency.
• The use of the RANDAO-inspired protocol enables cryptographically secure and verifiable random number generation without trust in any single party.
• All lottery operations, including ticket purchases and draw results, are publicly recorded on the blockchain, allowing for full auditability.
• The system demonstrates resistance to common attacks such as front-running and manipulation due to the commitment-reveal mechanism.
• The implementation confirms the feasibility of the proposed architecture in a real blockchain environment with correct functional behavior.
• The system maintains security and fairness even under adversarial conditions, as proven by the design and execution on a test network.