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Fortuna: A Novel Staked Voting System for Distributed Pari-Mutuel Gaming

In 2008, Bitcoin was introduced to the public and became the first widely accepted, fully decentralized cryptocurrency. However, as effective as blockchain technology has proven to be, one challenge that still exists is the ability to authenticate real-world event outcomes. Previous approaches rely on “trusted” feeds, self-reporting, and semi-centralized oracles - all of which have deficiencies. What is needed is a system and method of bringing real-world data into a decentralized network in a robust and low-cost way. One application for such a system is gaming. Casinos offer many benefits to a bettor. However, players often face large fees and unfavorable odds in order to participate in this centralized process. These high fees and unfavorable odds provide both an opportunity and a need for a decentralized platform with the ability to provide players with a more favorable means to engage in gambling. We seek to solve this problem by implementing a novel method of staked voting, enabling a network of otherwise trustless users to reliably agree on the outcome of a real-world event, such as the 2022 World Cup. We require winning bettors to vote on the outcome of another event in order to redeem their winnings. If they vote with the consensus, their winnings will be released. Otherwise, their winnings will be forfeited. This method of staked voting creates a fully distributed, self-regulated, pari-mutuel betting platform.