Welcome to K's BitLotto, a Bitcoin and Blockchain based lottery.
Most Bitcoin games are the digital equivalent of lottery scratch games. There's no one involved but you and the house and you know immediately if you've won or lost.
K's BitLotto is more in the family of the Big Draw games, you purchase a ticket (or several) for a particular game, and you check your ticket after the game is drawn to see if you've won anything.
Instead of drawing numbers, K's BitLotto uses the blockchain itself to determine the winning tickets.
K's BitLotto allows you to purchase one or more random tickets for a game at a specific blockchain height.
Each ticket is a potential hash for that height. A winning ticket is one whose last few characters match that of the actual hash for that block.
Each game has a difficulty determined by the number of tickets purchased, the difficulty is the number of characters that need to match at the end of the hash.
A jackpot ticket is one where the last difficulty number of hexdigits of the ticket are identical (value and position) to that on the block hash
The game will close a few blocks before that height is reached. At this time, there will be no more ticket sales for the game and the difficulty is locked.
After the game block has reached enough confirmations, winners are determined and prizes are paid out immediately to the players' accounts. If no one has a ticket with the same ending as the block hash, the jackpot rolls over into the next game.
Difficulty is determined, ultimately, by the number of tickets purchased for a given game.
For each game, the progress towards the next difficulty is displayed.
The number of tickets needed to increase the difficulty is determined by mathematical formula and is consistant throughout the game.
There is a minimum difficulty of 4 for every game. This means that at least 4 hexdigits will need to be matched at the end of the hash.
When a game with a high difficulty rolls over, the difficulty of that game, reduced by one, also rolls over. When this happens the difficulty of that next game is the greater of its own difficulty at the time and the rolled over difficulty.
What this means is that as gameplay slows, so does the difficulty, though the jackpot continues to roll over. It is possible to have a high jackpot game with a low difficulty.
In the case of multiple jackpot tickets, the Jackpot will be divided evenly between the winning tickets.
Right now, the house takes a small percentage of each game in order to pay for operating expenses. As participation increases, this percentage will be adjusted (mostly decreasing) to keep in line with those expenses.
Once 25 games have passed with no tickets purchased, a player is assumed to be an "Inactive Player". Inactive players are charged a fee of 0.5% of their balance at each game closing.
This fee will continue to recur for each game until the player's balance drops to zero, or they become an active player again by purchasing a ticket for an open game.