Q&A with Quanta – the blockchain lottery

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One of the most eagerly anticipated sessions at our GamCrowd’s ICE contribution was the blockchain session. Among the speakers was the Quanta use case as put forward by blockchain expert Hans Lombardo. Quanta is a decentralised, autonomous, and trustless lottery platform that uses blockchain and smart contracts technology and GamCrowd caught up with Lombardo after the session to go through the concept and see how it might transform the lottery space.

GamCrowd: Have you effectively built (or are you building) the first blockchain RNG?
Hans Lombardo: Quanta is building it is own patented blockchain driven RNG. There are other RNG being development that use combination of blockchain hashing algorithms and smart contracts for RNG - these include RANDAO and RANDAO++ on Ethereum. The Quanta lottery platform has different smart contracts, developed by Quanta and heavily tested, for various functions that make the system autonomous.

GamCrowd: Which issues do you think the use of blockchain in the lottery space answers?
Hans Lombardo: The blockchain permits a lottery that is decentralised, autonomous, and trustless without any human intervention. The ideal lottery platform eliminates human intervention or third party participation in platform. A distributed computing system like the blockchain paired with smart contract technology. Quanta for the moment is using the public Ethereum blockchain.

GamCrowd: Do you think that utilising blockchain can be one key to reversing the trend towards declining lottery sales?
Hans Lombardo: Yes by bringing about more versatility in lottery awards for more users or participants. One of the problems with lotteries is perception of fairness, but also lottery ticket price inflation and less awards for participants. The Quanta lottery platform can award up 85% payout for lottery ticket buyers.

GamCrowd: Do you see the lottery space as having particular potential for disruption because of its somewhat slow-moving nature?
Hans Lombardo:
Yes and there is also public perception that the prize may not be real or that they don't know if is fair. Even with third party RNG auditors in the gaming industry, there is no way for users to tell that it is fair. With Quanta as well as RNGs like RANDAO ++, there is a secret number seed from the user side that ensures that it is provably fair.

GamCrowd: Do you see the rest of the lottery space being at all able to pick up the pace here? Can you steal huge market share very quickly?
Hans Lombardo:
Quanta is ultimately customising the platform for different markets and organisations. This would permit countries that don't have lotteries too run them or effectively upgrade them.

GamCrowd: Have you approached or been approached by the large lottery vendors in relation to your use of technology?
Hans Lombardo:
Quanta has been in discussions with various regulators in different markets.

GamCrowd: Obviously, most lotteries are controlled either by central, state or local government, so what do you say to this sector about how Quanta might disrupt this quasi-governmental model? Are you promising to effectively cut out the middle man (i.e. the suppliers)?
Hans Lombardo: Quanta's decentralised lottery platform will be customised in accordance with the licensing of particular markets, developed or developing. Launching in Europe for example will require adhering to European Commission requirements.

GamCrowd:  Similarly with charities, what is your answer to the issue of ensuring there is a charitable beneficiary with the Quanta lottery?
Hans Lombardo:
The percentage return for charities can be programmed into the smart contract mechanism based on licensing requirements in the particular jurisdictions of operation.