Kostas Farris’ Blog

November 27, 2018
Quanta blockchain lottery

Chinese authorities have spent the past few days vigorously downplaying reports swirling around social media that a massive $20.5bn has been embezzled from the state lottery by corrupt officials.

The story has been building steam from some time, but erupted last week after the country’s top watchdog – the Central Commission for Discipline Inspection – released a video of four lottery officials “confessing.”

China’s two state lotteries – the Sports Lottery and the Welfare Lottery – generate about $58bn per year in annual sales. Online lottery has been banned since 2015.

The corruption scandal once again raises the question of why lotteries are banned when, with the right technology, fraud can be mitigated entirely. This is certainly true of online and land based lotteries powered by the blockchain:

  • Transparency – ledger is public and open, and anyone can inspect it. Combats money-laundering and fraud.
  • Payments – no need for third-party processor, so transactions are more secure.
  • Security – protected against cyber security threats such as DDoS attacks. Increased data protection and transactions cannot be altered by third parties. Clear record of deposits and withdrawals.

The technology to achieve this in the online and land based lottery sector is available today – Quanta is a fully licenced blockchain platform provider.