Part of the complete guide: Crypto lottery: the complete guide
The comparison
| Design | Example | Who holds the money | Who controls the draw | What you can verify | Main risk |
|---|---|---|---|---|---|
| Operator-run, published draw | CryptoDrawz | The operator | Public randomness plus a published rule; the operator cannot choose the value | The full draw, from the ticket list | The operator not paying prizes |
| Operator-run, opaque | Many casino-style "lottery" games | The operator | The operator's private RNG | Nothing, or only per-bet hashes | Rigged results, non-payment |
| On-chain jackpot | Megapot and similar | A smart contract | Verifiable randomness plus contract logic | Everything on a block explorer | Code bugs and key control |
| No-loss prize savings | PoolTogether | Smart contracts and a yield source | On-chain randomness | Deposits, yield and draws on-chain | Contract and yield-source failure |
| Mining lottery | A Bitaxe or NerdMiner solo-mining | Nobody: you receive the block reward if you win | Bitcoin's protocol | Blocks and rewards on a public chain | Electricity cost and tiny odds |
Examples are illustrations of each design, not endorsements or ratings. Projects change, so read each one's current documentation. We have not audited any of them.
Operator-run with a published draw
The simplest design and the one we use today. An operator sells tickets and runs a draw, but publishes the ticket list, a public random value and the rule that turns them into winners. Anyone can recompute the result. It is cheap to run, can pay out a high share of sales and can use ordinary payment methods. Its weak point is custody: the operator holds the money and pays prizes. A track record of paying, and honest disclosure of this limit, matter more here than anywhere.
Operator-run and opaque
Common at crypto casinos that offer "lottery" games, and in the many sites that exist only to take deposits. A private generator decides outcomes and the operator controls everything. The label "provably fair" is sometimes used for per-bet hashes, which prove a single result was not changed but say nothing about odds. Be careful, and read our scam checklist.
On-chain jackpot lotteries
The contract holds the money and the draw is run through verifiable randomness. This removes the operator from custody and from the draw, which is a real step up in trust, and replaces it with trust in code and in whoever controls the keys. They need wallets and some technical comfort. Read how on-chain jackpot lotteries work.
No-loss lotteries
You deposit and keep your deposit; yield pays prizes. This is a different product, closer to a prize-linked savings account. Odds and prizes are small, and the main risks are in the contracts and the yield source. Read what is a no-loss lottery.
Mining lotteries
A solo Bitcoin miner is the purest decentralized lottery: no operator at all, with the protocol itself paying a block reward to whoever finds a block. The price of entry is electricity and hardware, and the odds for a small miner are about a million times worse than a normal lottery's smaller prizes. See the complete guide to Bitcoin lottery mining.
How to choose
- If you want the cheapest, simplest ticket with a high payout share and a draw you can check: an operator-run, published draw, while accepting the custody trust.
- If you want to remove the operator from custody and are comfortable with wallets and code risk: an on-chain lottery with audited, immutable code.
- If you want to keep your deposit and play for yield: a no-loss lottery, with contract risk.
- If you want a very long shot with no operator and enjoy hardware: lottery mining.
- Whatever you pick, set a budget and keep it small.
Ready?
A weekly draw you can check yourself.
$5 tickets, a public random value, and every result published with the data to recompute it.
Frequently asked questions
Which type of crypto lottery is best?
It depends on what you value: low cost and a checkable draw, no operator in custody, keeping your deposit, or a mining long shot. None is risk-free.
Is on-chain always better than operator-run?
Not always. It removes operator trust but adds code and key risk, and may have higher fees. Audits and design details decide.
Can an operator-run lottery be fair?
Yes, if the draw is verifiable. The remaining trust is in paying prizes.
Where does CryptoDrawz fit?
We are an operator-run lottery with a verifiable, published draw. We are planning an audited on-chain version.