The shift towards lottery-based selection of public sale participants was popularized by initial exchange offering structures and commonly done in a manner that is centralised, despite its predominant use for decentralised projects. Chainlink and Centaur have plans to decentralise this process by leveraging on Chainlink VRF in conjunction with deterministic selection functions to create a lottery selection process that is provably fair and transparent by design.
To achieve this, Centaur will deploy a smart contract on Ethereum and populate it with an array of participating addresses. Chainlink VRF will then be used to generate a root random seed, which would be the first input for a pre-disclosed index selection function that is deterministic in nature. The corresponding address will be added to the list of winners and used as the new seed for the next iteration. This process is repeated until exactly 700 addresses have been selected, regardless of the size of the initial list. The first version of this contract has already been deployed and tested successfully on the Ethereum Rinkeby Testnet and can be found here.
Due to the deterministic nature of the selection process, there was always a risk of manipulation during the generation of the root seed. Chainlink VRF was the missing piece of this hypothetical puzzle and resolved the issue by delivering its randomness along with cryptographic proofs that can be verified on-chain, showing that the randomness is indeed unpredictable.
Beyond Chainlink VRF, Centaur has plans to integrate the Chainlink Network for market data aggregation and off-chain price feeds for its DeFi solutions. In the near future, both teams will also collaborate on the development of oracles that enable chain-to-chain data transmission, with a goal to build a fully decentralized cross-chain exchange.
“As the De...