Visible to the public Zero-Collateral Lotteries in Bitcoin and Ethereum

TitleZero-Collateral Lotteries in Bitcoin and Ethereum
Publication TypeConference Paper
Year of Publication2017
AuthorsMiller, A., Bentov, I.
Conference Name2017 IEEE European Symposium on Security and Privacy Workshops (EuroS PW)
ISBN Number978-1-5386-2244-5
Keywordsauthoring languages, bitcoin, Bitcoin implementation, bitcoin security, contracts, cryptocurrency-based lottery protocols, cryptographic protocols, electronic money, Ethereum-based implementation, Europe, Human Behavior, human factor, human factors, off-chain setup phase, privacy, Protocols, pubcrawl, Scalability, scripting language, tournament bracket construction, zero-collateral lotteries

We present cryptocurrency-based lottery protocols that do not require any collateral from the players. Previous protocols for this task required a security deposit that is O(N2) times larger than the bet amount, where N is the number of players. Our protocols are based on a tournament bracket construction, and require only O(logN) rounds. Our lottery protocols thus represent a significant improvement, both because they allow players with little money to participate, and because of the time value of money. The Ethereum-based implementation of our lottery is highly efficient. The Bitcoin implementation requires an O(2N) off-chain setup phase, which demonstrates that the expressive power of the scripting language can have important implications. We also describe a minimal modification to the Bitcoin protocol that would eliminate the exponential blowup.

Citation Keymiller_zero-collateral_2017