Quote from: DireWolfM14 on April 20, 2020, 02:41:13 PM

So, essentially the private keys that your clients possess are for a centralized stable coin that can only be redeemed on your platform? Please explain to me how the term "decentralized" applies to any aspect of your service.

This is open source and anyone can install a node. This is an implementation of the colored coins concept and is compatible with Bitcoin, Litecoin and any other blockchain based on bitcoin's code.

Unlike ICOs I'm not trying to launch a single currency. Anyone can use this open source protocool to launch their own currency.

Here I'm proposing a stablecoin pegged to the dollar and using the Litecoin network. Players own coins with litecoin private keys held in a litecoin wallet on their node.

It's possible to use this protocol to launch coins which are not backed by anything. But I believe coins should be backed by sources of value which is why I'm pursuing a business model which uses stablecoins.

Yes, the stablecoin aspect means this is less decentralized than bitcoin and is more similar to Tether.

One of the weaknesses of Tether's business model is that there is no end date to their stablecoin. Tether holders are asked to trust that Tether keeps every coin fully backed by a dollar, without incurring any operating expenses and no end date to the scheme.

Here I'm proposing a series of stablecoins each of which has an end date. When a game ends, the source of value funds are paid out and the stablecoin is terminated. Then another game starts and players have the opportunity to buy in to the next game. You can buy from the stablecoin issuer or from other coin holders via an exchange. Putting an end date on each stablecoin means that any situation where the stablecoin issuers fails to maintain the escrowed store of value funds becomes apparent.

I believe the transparency and incentives in this design are a much better way to guarantee against fraud in comparison to stablecoins like Tether. Charging fees to bettors by burning some coins whenever a bet is placed causes the supply of coins to constantly reduce, and these fees accrue to the stablecoin issuer by reducing the amount of store-of-value funds owed to the coin holders. Giving stablecoin issuers a legitimate way to make money makes the business model work and allows them to earn a transparent profit which they can use towards operating expenses.

As I mentioned above, the business model that I'm pursuing is not similar to ICOs where the founders make money via seigniorage. Instead in this business model, fees are earned by the stablecoin issuer and any "hedge funds" which help sets the odds and provide liquidity to the bettors. Bettors benefit since they get odds which are higher than traditional bookmakers and also from more decentralized design of this system (open source software, holding your own private keys).