Please describe your proposed solution.

<u>Problem statement:</u>

Globally, many individuals who purchase lottery tickets come from low-income backgrounds, hopeful that a stroke of luck will alleviate their financial difficulties. These individuals often lack the influence to impact the outcome of a lottery draw. The inherent issue lies in the centralized control of traditional lottery systems, where verifying the transparency of results becomes an insurmountable challenge. Doubts persist regarding whether prizes are genuinely distributed randomly to every participant, raising concerns that a portion of the winnings ends up concentrated in the hands of a select few orchestrating these conventional lottery systems.

Identified Issues in Traditional Lottery Systems:

1. Lack of Transparency: The opacity surrounding the distribution of proceeds and the potential manipulation of winning numbers creates an atmosphere of uncertainty. Traditional lottery systems lack the necessary transparency mechanisms, leaving participants uninformed about the fairness of the draws and the authenticity of the results.
2. Limited Accessibility: Geographic constraints impose significant limitations on participation, rendering traditional lotteries inaccessible to potential players residing outside specific legal jurisdictions. This exclusionary approach hinders the democratization of lottery participation, preventing a more diverse and widespread engagement.
3. Ticket Issues: Inherent characteristics of physical lottery tickets, such as loss, tearing, deterioration, or forgery, pose challenges. The lottery ticket owners may face difficulties claiming their prize if their winning ticket is damaged, lost, or counterfeited, highlighting the need for a more secure and technologically advanced approach.

Blockchain technology has the potential to address these challenges and create a more equitable and accessible lottery system for everyone. Blockchain-based lottery systems are transparent and verifiable, making it easier for players to trust that the games are fair. They are also accessible to people all over the world, regardless of their location. Finally, blockchain-based lottery systems can help to reduce ticket fraud and other issues.

As blockchain technology continues to develop, it is likely to play an increasingly important role in the lottery industry. Blockchain-based lottery systems have the potential to make the lottery more fair, accessible, and secure for everyone.

<u>bLott's Solution</u>: Build a decentralized lottery system, using Cardano blockchain smart contracts to ensure complete transparency, payment grantee for lottery players and game makers around the world. This project will solve many existing problems of traditional lottery systems:

1. Transparency: bLott ensures complete transparency by recording all transactions and draw results on the Cardano blockchain. This guarantees verifiable and immutable proof of fairness throughout the entire process, instilling trust and accountability.
2. Accessibility: With bLott, participation is open to anyone worldwide with a Cardano wallet. The elimination of geographic restrictions ensures inclusivity, allowing individuals from any location to engage in the lottery seamlessly.
3. Security: The implementation of blockchain technology within bLott establishes a robust security framework, safeguarding the system against fraud and manipulation. Users can trust the integrity of the lottery operations, knowing that the technology ensures a secure environment.
4. Efficiency: bLott streamlines operations by automating processes, eliminating bureaucratic overhead. This results in faster payouts and overall efficiency, enhancing the user experience and contributing to the sustainability of the platform.
5. Anonymity: bLott prioritizes user privacy by allowing individuals to choose anonymity. This flexibility empowers users to engage in the lottery without compromising their personal information, adding an extra layer of privacy to the experience.
6. Variety: To cater to diverse preferences, bLott offers a wide range of games and price points. This variety ensures that users can choose the lottery experience that best suits their preferences, enhancing engagement and enjoyment.
7. Fairness: Unlike traditional lotteries, bLott operates with unparalleled fairness. The use of provably fair mechanisms in generating winning numbers eliminates any concerns about manipulation.
8. Distribution: Furthermore, prizes are automatically and directly distributed to winning users, eradicating the possibility of unfair distribution or withheld winnings. This commitment to fairness ensures that every participant has an equal and transparent chance of winning, fostering a more equitable lottery ecosystem.

<u>How bLott Works:</u>

1. Buying tickets: Users simply send assets to a smart contract address to purchase tickets. These assets are securely held and later used to pay out winning users.
2. Winning numbers: Drawing numbers are chosen through a completely random and verifiable mechanism, ensuring fairness and transparency.
3. Prize payout: Winning users automatically receive their rewards directly to their wallets, eliminating delays and intermediaries.
4. Decentralized governance: The system operates autonomously through smart contracts, with additional off-chain code triggering payouts for winning users.

<u>Key Users:</u>

1. Lottery makers: Individuals or organizations around the world who want to create transparent, automated, geo-restricted lottery games that appeal to users in their communities, in accordance with national laws. they are active, and set their own rules for their games.
2. Lottery players: People who want to try their luck on a completely transparent lottery system.

<u>Benefits for Lottery makers:</u>

1. Easily create completely transparent and automated lottery games quickly, enhancing the credibility of their users. This cannot be achieved by centralized lottery systems.
2. There is no need for programming and technical infrastructure costs like other traditional lottery systems.

<u>Benefits for Lottery players:</u>

1. Easy participation: Users can easily purchase tickets, check results, and claim rewards through a user-friendly interface.
2. Guaranteed payouts: Winners automatically receive their prizes directly to their wallets, with no delays or intermediaries.
3. Security and trust: The transparency and immutability of the blockchain ensure the integrity of the system and provide users with peace of mind.
4. Greater variety: bLott offers a wider range of games and ticket options compared to traditional lotteries.

<u>Important note: </u>

1. The bLott project does <u>not create</u> lottery games. It does not release or sell lottery tickets to the Lottery players. Instead, our focus is on building a system that allows <u>anyone to create their own lottery game</u> for independent distribution. This approach ensures transparency and fairness for both players and game creators.
2. The final out put product product is the Players mode MVP.
3. In the upcoming stages of the project, we will introduce features with various options. This will enable the Lottery makers worldwide to develop games compliant with the legal regulations in their respective countries, ensuring that the distribution and purchase of lottery tickets align with the laws of their nation.

<u>Conclusion:</u>

bLott represents a significant leap forward for the lottery industry. By leveraging the power of blockchain technology, it addresses the critical challenges of traditional lotteries and creates a fairer, more transparent, and accessible experience for everyone. bLott is not just a lottery platform; it is a testament to the potential of blockchain to revolutionize traditional systems and create a more secure, inclusive, and exciting future.

Please define the positive impact your project will have on the wider Cardano community.

bLott's Positive Impact on the Cardano Community

bLott's innovative application of blockchain technology to the lottery industry carries significant positive impacts for the wider Cardano community, contributing to growth, engagement, and value creation across various dimensions:

1. Expansion of the Cardano Ecosystem: bLott's success paves the way for broader adoption of Cardano in the gaming and entertainment sectors, showcasing the platform's scalability and utility beyond traditional financial applications. This expansion attracts new users and developers, diversifying the Cardano ecosystem and fueling further innovation.
2. Increased Transaction Volume: As bLott gains traction, transaction volume on the Cardano blockchain will increase substantially. This growth translates to greater revenue for network stakeholders, including SPOs (staking pool operators), and delegators, boosting the overall health and sustainability of the Cardano ecosystem.
3. Enhanced Usability and Visibility: bLott provides a user-friendly and accessible interface for interacting with Cardano's smart contract functionality. This user-centric design promotes wider adoption of Cardano by simplifying blockchain technology for the general public, enhancing overall understanding and engagement with the platform.
4. Stronger Cardano Brand: bLott's positive impact on the lottery industry and its demonstrably fair and transparent operations contribute to a strong brand image for Cardano. This association with a trusted and responsible technology further enhances Cardano's reputation as a secure and reliable platform for building innovative solutions.
5. Attracting New Investments: bLott's success has the potential to attract new investments to the Cardano ecosystem. Investors recognize the project's disruptive potential and its ability to drive substantial growth for the platform. This influx of capital fuels further development and accelerates Cardano's journey towards becoming the leading blockchain platform for decentralized applications.

In conclusion, bLott's impact on the Cardano community extends far beyond its core function as a lottery platform. It serves as a catalyst for growth, engagement, and value creation, contributing to the expansion of the Cardano ecosystem, enhancing its usability and visibility, fostering community development, and attracting new investments. bLott's success story is intricately linked with Cardano's success, demonstrating the power of blockchain technology to revolutionize traditional industries and create a more transparent, inclusive, and accessible future.

What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

1. Experienced: Our team boasts over 20 years of combined experience in application programming, coupled with 2 years dedicated to mastering the intricacies of smart contract development. Notably, bLott's development lead also spearheads the bWork application, a pioneering platform connecting job seekers and employers on the Cardano blockchain.
2. Low cost: We've already established the core technical infrastructure, including a functioning mainnet on the Cardano network and a deployed smart contract. This solid foundation enables us to leverage existing resources from bWork, drastically reducing the time and cost involved in building a new DeFi web3 project.

By optimizing development through existing infrastructure and expertise, bLott ensures efficient progress and a timely launch, bringing our innovative lottery platform to life.

What are the key milestones you need to achieve in order to complete your project successfully?

Month 01

<u>Place tickets</u>

Develop frontend, backend and web3 to form end users functions:

• Select tickets to buy
• Suggest most potential tickets for user to choice.
• Recorded the bought tickets
• User notification.

<u>Outputs</u>

• Functions, components are developed and deployed.
• Users are able to select available ticket to place.
• Run smoothly, no error and fast.

>Month 02-03

<u>Smart contract</u>

• Develop Cardano smart contract to:
• Receive the payment from user when they buy the tickets
• Distribute the prize to won users.
• Backend API to record the transaction.

<u>Outputs</u>

• Smart contract is developed and ready to use secured compatible offchain code.
• User is able to send asset to smart contract to buy the tickets
• System is able to spend locked UTXOs to won user.

>Month 04-05

<u>Web3 Payment function</u>

• OffChain web3 code to submit the transaction that send asset (buy tickets) to bLott smart contract.
• Record the transaction meta data to let user track the payment status.
• Notify user when they complete the orders.
• OnChain and offChain tracking the payment transactions.

<u>Outputs</u>

• User is able to use bLott UI to perform the payment for selected tickets.
• User is able to track the status of its payment.

>Month 05-06:

<u>Launch product</u>

• Deploy product to AWS infrastructure.
• Grow users for trial functions.
• Operate the staging services for trial users, test and feedback.

<u>Outputs</u>

• Prototype is deployed and ready for trial.
• Core function are verified, run stable, safe and fast.
• Grow community user to joint the trial services.

Who is in the project team and what are their roles?

✍ Kim Ngan

Participated in the Cardano ecosystem from fund 5 to present with the roles of CA/vCA, PA/vPA, CR LV2. Evaluated many projects from talented teams on the Cardano ecosystem, thereby learning many project development ideas.

Has nearly 10 years of experience managing online business teams, ensuring the management of teams and user communities for the bLott project.

Social channel:

• Telegram: Kim Ngan
• Facebook: Kim Ngan

✍ Thang Tran Developers manager

Software expert along with others to create some of the very successful high volume and high availability critical mission software. With 12 years of experience in software product development and bigData analysis.

• Software design at all levels
• Backend/frontend and mobile development
• Blockchain and hash algorithms
• Skill React Native, Node, Haskell, and Plutus
• Engineering management.
• Smart contract, web3 developer.

Social channel:

• Telegram: Thang Tran
• Github:Thang Tran

Please provide a cost breakdown of the proposed work and resources.

The detail cost for defined milestones to have deployed, mainnet worked prototype of MVP with core logics verified by the community:

• ₳24.000: Place tickets ~ $7.200 (=25,26% of total)
• Develop Cardano smart contract: ₳12.000
• Backend API to record the transaction: ₳8.000
• Fee of 3 AWS servers (3 months): ₳3.000
• Propject management: ₳1.000
• ₳21.000: Smart contract ~ $6.300 (=22,11% of total)
• Smart contract is developed and ready to use secured compatible offchain code: ₳10.000
• User is able to send asset to smart contract to buy the tickets: ₳5.000
• System is able to spend locked UTXOs to won user: ₳5.000
• Propject management: ₳1.000
• ₳24.000: Web3 Payment function ~ $7.200 (=25,26% of total)
• OffChain web3 code to submit the transaction that send asset (buy tickets) to bLot smart contract.: ₳5.000
• Record the transaction meta data to let user track the payment status: ₳5.000
• Notify user when they complete the orders: ₳5.000
• OnChain and offChain tracking the payment transactions: ₳5.000
• Fee of 3 AWS servers (3 months): ₳3.000
• Propject management: ₳1.000
• ₳26.000: Launch product ~ $7.800 (=27,37% of total)
• Deploy product to AWS infrastructure: ₳12.000
• Grow users for trial functions: ₳8.000
• Community feed back: ₳5.000
• Propject management: ₳1.000

Total request: <u>₳95.000</u> (~$28.500)

<u>Important note:</u> This proposal only focuses on the basic infrastructure tasks required to create a (MVP) minimum viable product on mainnet . It does not include mass user design, or media management activities.

When the product is released to mainnet, we will need to consider the following:

• Mainnet infrastructure: This includes things like scaling, security, and performance.
• Mass user design: This includes things like user experience, usability, and accessibility.
• Media management: This includes things like marketing, communications, and community engagement.

We will work closely with stakeholders to ensure that these areas are adequately addressed as we move towards production.

How does the cost of the project represent value for money for the Cardano ecosystem?

The budget above is estimated from actual costs in USD then exchanged to ADA at rate $0.3 per ADA. This exchange rate is equivalent to the average price of ADA in the most recent 12 months.

We have also made an adjustment in case the price of ADA drops even lower.

There are many potential reasons that could cause the price of ADA to drop lower than it is currently, such as:

• The continued global economic recession leading to an even more serious crisis;
• War spread to many regions of the world;
• Devaluation of currency due to high inflation rate…