SP8DE is a protocol for blockchain-based platform with multiple features that are essential for the growing blockchain gambling industry

S P 8 D E

Introduction

Welcome to Spade, a blockchain-based platform capable of providing unfamiliar general oddities to develop and run distributed casino applications. Spades are designed to fit the goals of all actors comprising the online casino landscape and thus represent a new type of digital institution, distributed intermediary.

The spark that ignited this project and continues to inspire us now, is that the early blocks and Bitcoin casinos did not do it right. The Blockchain community is younger and wilder, the ideals of distributed freedom stay brighter, early adopters applying blockchain technology to gambling promote the wrong ideals; which damage the image of a decentralized casino. Instead of promoting transparency and cost efficiency that characterize blockchain technology, they promote anonymity and cyber anarchy. Instead of making a casino for everyone, they keep it for themselves.

It does not mean we are here to judge. Instead, we are here to change. We are not saying that the old way is bad, but it can be proved that the new one is better. We believe in a decentralized future and appreciate the charm of gambling. We soon realized that there was only a fragile glass wall between centralized gambling and a future casino in the future. Here it is, a simple but captivating idea. The future is here: we can run a zero-edge decentralized casino with nearly zero transaction costs and a good random amount to feed entropy into a variety of Smart-Contract open source casino applications that can be developed by

anyone who has a decent idea using special programming languages ​​and common languages. "We can" is the silent voice of the idea. Now the marching echoes of "we do".

As is often the case, technological advances make a big leap forward unknown to most types of people: people are still choosing narrow and narrow-minded online casinos that create a cruel and unfair home edge. Again, no one is entitled to judge: it's just an existential business need, produced by a dilapidated business model and an inch of greed.

Industry Background

In the European Union the online gambling industry grew nearly 19% from the first half of 2015 to the first half of 2016. The casino industry in particular generated over US $ 2 billion in revenues during this period. It is expected that until 2020 this number will reach US $ 2.25 billion per year representing about 12.5% ​​revenue growth

In the US for the period 2015 until 2016 online casino revenues increased by 24.4% and are expected to reach US $ 4 billion by 2020. The EU and the US are just a small part of the worldwide casino industry. Globally, the projections of the online casino show that for the period 2017-2025 the market will experience growth of about 130% reaching US $ 97 billion with cumulative annual growth rate of nearly 11%. Currently over 6 million adults are participating in gambling activities around 10 million by 2020.

Since inception, the blockchain technology was the subject of close attention by gambling enthusiasts. Recent news from The Merkle show how popular online Bitcoin betting has become. In aggregate the wagers put on online Bitcoin casinos in February 2017 have reached nearly 3 Bitcoin per minute. The price of Bitcoin at the end of February was about US $ 1,200 while now it is US $ 5,900 (approximately 292% growth) which means that as of today almost US $ 715 million worth of Bitcoin was gambled in February alone.

Bitcoin vs The Online Gambling Industry

Figure 1 The Online Gambling Companies and Bitcoin; Sources: Yahoo Finance and Coindesk

"Bitcoin Casino" vs "Online Casino" Popularity

Figure 2 Google Trends “Bitcoin Casino” vs “Online Casino”

Here we have approached the cornerstone topic in on-chain casino design. The immanent importance of this topic can only be matched by the extent of controversy associated with it. Before delving deep into complexities of probability theory, let’s summarize what has been said so far.

1. The uprising of the casino industry from the early days of humanity until the very end of the XX century can be portrayed in standard outlines of economic theory: it has been a long quest towards erasing the transaction costs by the means of centralization and institutionalization of the gambling process.

2. The problems that have remained unresolved included poor transparency, high overheads incurred by casinos to maintain lucrative buildings and other required infrastructure that translated into high house edges; and, finally, the need to travel to a “physical” location.

3. An additional problem was that of inclusion: indeed, not everyone could participate in the development of new games. Some of these problems have been partially resolved by the slow migration of casinos online. Nevertheless, those of poor transparency and large house edges have also remained. In general, these are the problems that are inherent to the legacy financial system; the one based on intermediation and trust.

4. Therefore, it comes as no surprise that numerous projects have embraced the challenge to move the gambling process on-chain. This, however, turned out to be an ambitious aspiration with numerous pitfalls and seemingly unsurpassable technological barriers. While resolving the issue of inclusion, transparency (from the gambler’s perspective) and excessive house edges, blockchain gambling exacerbated those of high transaction fees and anonymity. It also brought new challenges along with it: how do we resolve the issue of slow settlement? Finally, we addressed the sinle most important problem: the generation of the distributed randomness

As always, when one is stuck being unable to find a theoretically convincing and practically appealing answer in the domain of centralized applications, the world of distributed consensus is the place to search for answers.

There is no easy way to get distributed randomness: blockchain protocols are deterministic by nature and, do not have implementations of random number generation on the protocol level. But it wouldn’t be blockchain if this was the final answer. The following ‘solutions” have been proposed and implemented :

1. Most of the attempts to circumvent this limitation in the end still rely on fresh entropy provided by either the users themselves or random oracles that in turn can either be manipulated or have malicious incentives of their own. So, random oracles off-chain single point of failure red flag.

2. Others opted for a different path and proposed using the block hash. While such protocol design is much more appealing from a theoretical viewpoint as it generates random numbers on-chain (no red flag), it has another major flaw: given sufficiently large monetary incentive miners with sizeable hashing power can manipulate the game outcome by not submitting the freshly mined block. Using timestamps and virtually any other block content falls victim to the same issue.

3. Commitment schemes: the most promising solution with two major drawbacks: huge computational overhead and possibility that a malicious player will not open the secret after learning the outcome of the game. In other words, these schemes lack guaranteed output delivery. Monetary disincentives can be introduced to punish malicious actors basically collateralizing the Smart Contract thereby forcing the output delivery. In theory it works just fine. In practice one ends up with a slow and terribly expensive working protocol with limited applicability.

Competitor Review

A number of other projects utilizing the blockchain are entering the gambling industry by either aiming to create a platform for online casinos or by simply placing a specific game or a variety thereof on-chain. As noted above, among the issues which are solved by simply creating blockchain-powered versions of the games, three main problems remain yet unaddressed:

1. Transaction Settlement Time: it takes significantly longer to settle a transaction on-chain than off of it as each block requires time to be mined.

2. Transaction Fees: the fee for each transaction can become prohibitively high and preclude small bet sizes.

3. Provably random: the generation of randomness on-chain is a challenging as miners can see and modify block headers before everyone else.

DAO.Casino

introduces a decentralized system for the online gambling industry which consists of an automated value distribution protocol acting as mechanism of incentives based on Ethereum. The team has recently began developing Payment Channels to address the first two problems while addressing number three by the introduction of the Signidice algorithm (which is suitable only for two parties” games). It goes without

saying that any casino protocol lacking good quality randomness that can be extended to any number of parties cannot serve as a backbone for the decentralized gambling industry.

BitPoker

propose a peer-to-peer protocol where no central actor has influence over the outcome of the game. They use Bitcoin and lightning network for transaction settling and blockchain for game state persistence. In the white paper of BitPoker (which is a project solely aimed at poker games) none of the aforementioned issues is explicitly addressed.

Edgeless is built on the Ethereum blockchain and claim to be the first to create fully transparent and zerohouse-edge decentralized casino. Edgeless” aspiring team aims to introduce a number of innovations in the industry of online casinos; however, their white paper also does not address the three notorious predicaments.

BitDice is also based on Ethereum but aim to implement IOTA in the future to provide costless transactions. For now, the developers of BitDice claim that the move from Ruby to Elixir by Q1 of 2018 would reduce the betting latency from 20-40ms to 2-5ms, nevertheless, for now, transaction fees and the generation of randomness are not addressed in any meaningful way.

FunFair is Ethereum based, can launch limitless number of online casinos, it is instant, claim to be ten times cheaper in terms of gas cost than other casinos, and propose an innovative way of RNG. FunFair’s ambitious project aims to achieve zero latency between the time of user’s interaction with the interface and the result, effectively eliminating the first issue. In addition, they pay attention also to both transaction fees and specifically target on-chain provably random number generation through the development of Fate Channels.

Below summarizes whether each of the projects addresses one or more of the three problems in a novel and effective way :

Table 1 The solution to the three problems

The Spade Protocol

At the heart of Ouroboros is the so-called Follow-The-Satoshi (FTS) procedure. Its essence is simple : assuming input of the uniform randomness, FTS is guaranteed to select a stakeholder with the uniform probability proportional to the number N of coins (or satoshis) one possess relative to the total number of coins in the system. In short, FTS does the job: it possess the qualities required to make an effective POS protocol. But, as always, there is a catch: FTS assumes input of ‘proper’ randomness. But where does it come from? Before answering this question, let us lead your through the mechanics of FTS procedure itself: it will prove useful later on.

The FTS proceeds along the following steps:

* The fresh randomness is injected into the system;

* It is used to ‘pick’ a single satoshi, the smallest unit of account in the system, an analogy to cent for US dollars;

* All satoshis have ids. The state of the protocol determines which user (determined by the wallet id) was the last one to hold the satoshi selected;

* This user becomes the ‘leader’ or in other words is entitled to sign a block;

Armed with the PVSS and FCT machinery, Ouroboros protocol proceeds in steps: the minor steps are called slots and represent a spot in the protocol time whereby an elected leader has a chance of signing a block of transactions receiving the fee reward. The major steps are called epochs: these contain multiple slots and end with running of the FTS procedure. A stylized illustration of a single epoch is given in figure X :

The protocol is broken down into slots, slots contain blocks, and blocks contain transactions. The outcome of the FTS procedure determines all the slot leaders (those entitled to sign a block) for the following epoch. A stylized version of the multi-epoch protocol is illustrated below :

What is SP8DE ?

Sp8de is a protocol for blockchain-based platform with multiple features that are essential for the growing blockchain gambling industry and whose solid implementation is lacking in any of the currently existing projects in this space.

Here are excerpts of a presentation video about this great project:

Blockchain



* Decentralized 3.0
The backbone of Sp8de, the Cardano blockchain is the first Proof-Of-Stake protocol without security compromises.

* Scalable and Efficient
Tens of thousands of transactions per second: no user experience constraints.

* Sp8de Smart Contracts

Smart-Contracts scripting language that was specifically designed for this.


Distribution Schedule


The token distribution begins on Monday, January 08, 2018 and ends on Sunday, March 11, 2018 and is scheduled as in the manner illustrated in Table 4 below. The Pre-Sale lasts for 24 days while each Sale phase will be seven days followed by a Jackpot that is distributed entirely within a single day after every Sale. A graphical illustration of the entire SPX distribution can be seen in Figure 2 below.

Token Proceeds Utilization

The proceeds of the token sales as well as the tokens that remain in possession of the team will be used to promote and develop the project as outlined in the Road Map section of this paper. In the figure below, we show how the proceeds will be utilized. As we have shown earlier Sp8de is development intense, therefore we allocate the majority of the proceeds to development and operations as we believe that proper management and highly skilled developers are in the core of the success of this project. Furthermore, when needed the tokens allocated to the Sp8de Foundation and the team might be used for further promotion and as part of an incentives scheme.

Crowdsale Proceeds Management

The funds raised during the Pre-Sale and the ICO will be held in the following cryptocurrencies and in the following proportions at the time of the conclusion of the ICO (March 11, 2018):

The distribution of the funds for development, marketing, operations, etc. will be done in these cryptocurrencies at the discretion of the team and these weights may not necessarily hold during the later stages of the Sp8de development.

Roadmap

Team & Advisors

More information details

> Website : https://sp8de.com/
> Report : https://sp8de.com/sp8de_white_paper.pdf
> Twitter : https://twitter.com/SP8DE_Official
> Facebook : https://www.facebook.com/sp8deofficial/
> Telegram : https://t.me/joinchat/B-YJaQ_ULpPKAzPHFPUa-Q
> Github : https://github.com/SP8DE
> Reddit : https://www.reddit.com/r/sp8de/
> ANN Thread : https://bitcointalk.org/index.php?topic=2659341

Poste by Dico88