Cryptographic Betting Commitments for Fair Trustless Gaming
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Solution Overview
Problem
Traditional betting systems provide bookies with asymmetric information advantage, allowing them to manipulate odds and exploit bettors, while bettors' predictions and wagers are exposed, leading to unfair outcomes.
Innovation Solution
A trustless gaming platform encrypts bettors' predictions and wagers using cryptographic stand-ins, ensuring they remain hidden until the event outcome is determined, using event-locked encryption and hash-based commitments to prevent strategic betting.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional betting systems are used, then bookies have asymmetric information advantage and can manipulate odds, but bettors' predictions and wagers are exposed leading to unfair outcomes
Solution Approach 1:
The patent introduces a cryptographic stand-in as an intermediary between the bettor's prediction and the betting system. This stand-in contains encrypted information that can be verified by the system without revealing the actual prediction to the bookie or other bettors, thus mediating the information flow to ensure fairness while preventing manipulation.
Solution Approach 2:
The patent creates a cryptographic copy (stand-in) of the bettor's prediction that preserves the essential verification capability without exposing the original prediction content. This copy can be stored and verified by the system while the actual prediction remains hidden, solving the contradiction between information exposure and fairness.
2Reliability
If bettors' predictions are hidden, then strategic betting and manipulation are prevented, but the system complexity increases due to cryptographic mechanisms
Solution Approach 1:
The patent uses a cryptographic stand-in that is a simplified copy of the prediction mechanism. Rather than implementing complex encryption systems, it uses a standardized cryptographic format that balances security with implementation simplicity, reducing the complexity burden while maintaining the prevention of strategic betting.
Solution Approach 2:
The patent segments the betting system into distinct components: the cryptographic stand-in for prediction, the verification mechanism, and the payout system. This segmentation allows each component to be optimized independently, reducing overall system complexity while maintaining the core function of preventing strategic betting through encrypted predictions.
3Reliability
If predictions remain hidden until settlement, then no strategic betting can occur, but the verification process becomes more complex
Solution Approach 1:
The patent uses a cryptographic stand-in that contains all necessary verification information in an encrypted form. The stand-in is designed so that verification can be performed efficiently by comparing the stand-in against the actual prediction after settlement, without requiring complex verification procedures. The cryptographic copy maintains integrity while simplifying the verification process.
Data Source
AI summary
A trustless, cryptographic gaming platform is disclosed for facilitating secure, fair, and auditable betting without relying on centralized intermediaries or odds-setters. To bet on the outcome of a future event, a bettor submits a cryptographic stand-in of the bet instead of the actual bet. When the event's outcome is established, all bets are revealed, verified against their stand-ins, and the wagered amounts are apportioned among winners according to an apportionment scheme that the bettors agreed to.