Satoshi Dice

2012-10-21T10:31:18Z

Rini17: /* History */ Added info about IPO and shares trading

A blockchain-based betting game.

Blockchain betting games are those which use information from the wager transaction in the blockchain in determining whether the player wins or loses.

Unlike traditional online gaming software, wagers with SatoshiDice can be sent without access to the website nor running any client software. To play, a Bitcoin transaction is made to one of the static addresses operated by the service, each having differing payouts. The service determines if the wager wins or loses and sends a transaction in response with the payout to a winning bet or it returns a tiny fraction of the house's gain to a losing bet. As a result, the player receives a win/lose response relatively instantaneously. SatoshiDICE pays a transaction fee on for each payout so the transactions will be relayed and included in the blockchain without significant delay.

With SatoshiDICE, there is no need for bitcoin transactions to first confirm as the method the service creates the payout transaction includes a dependency on the original wager transaction. This gives the service the ability to accept a 0/unconfirmed transaction for each wager.

Multiple bets may be in a single transaction (e.g., a bet can be made for Under 48,000 and include a second bet Under 32 in the same payment transaction). The service will respond with multiple payout transactions, one for each bet, in response.

There has been the suggestion that the service might be seeing use as a [[mixing service]], as the composition of a wallet can be materially changed after running wagers through SatoshiDICE<ref>[http://bitcointalk.org/index.php?topic=79079.0 Blockchain-based betting services function as mixing services?]</ref>. Though this approach could change the makeup of the wallet, it does not sufficiently serve the mixing purpose as the coins returned in winning bets are tied to the coins from the wager transaction.

There is no reason to believe that [[Satoshi Nakamoto]] has anything to do with this service, other than the service choosing to include the noun Satoshi in the brand.

==Random Number Generation==

To determine if a wager is a winner or loser, the site uses a method to produce a number between 0 and 65,535, similar to how a random number generator (RNG) would be used. The service uses a combination of the transaction hash from the wager transaction from the blockchain and performs a sha2 (sha-512) hash for that transaction hash using a secret unknown to the player. The first four bytes of that sha-512 hash become the lucky number in determining winner or loser.

==Odds==

Each wager address has different odds, and each gives the house an edge of 1.50% (i.e., payouts are 98.5% when including the payout to the losing bets)<ref>[http://bitcointalk.org/index.php?topic=77870.msg906438#msg906438 Some changes to the site]</ref>. The website shows the full list of wager addresses and odds.

==Automated Betting==

Bitcoin's community of developers wasted no time building automated betting bot scripts employing the Martingale betting system and variants thereof<ref>[http://bitcointalk.org/index.php?topic=80245.0 PHP martingale bot for satoshiDICE]</ref>.

==History==

SatoshiDICE was the brand given the service initially created by [[BitcoinTalk]] forum user FireDuck before selling the system to another operator<ref>[http://www.reddit.com/r/Bitcoin/comments/segz0/anyone_want_to_run_my_bitcoin_casino Anyone want to run my bitcoin casino]</ref>. The service was announced on April 24, 2012<ref>[http://bitcointalk.org/index.php?topic=77870.0 SatoshiDICE.com - Verified rolls, up to 65,000x winning]</ref>]. Withing weeks, the site became responsible for more Bitcoin transactions than all other uses of Bitcoin -- combined<ref>[http://bitcointalk.org/index.php?topic=79285.0 All-time transaction record was just hit]</ref>.

Since August 20, 2012 SatoshiDice shares are publicly traded<ref>https://bitcointalk.org/index.php?topic=101902.0 IPO shares announcement</ref> at [[MPEx]] under S.DICE symbol and paying monthly dividends.

==See Also==

* [[Mixing service]]

==External Links==

* [http://www.SatoshiDICE.com SatoshiDICE.com] website

==References==
<references />

[[Category:Gambling]]

MPEx

2012-10-12T18:12:35Z

Rini17: Added link to new MPEx brokerage

An exchange where stocks, bonds, options and other types of securities are traded.

The exchange is offered and operated by Mircea Popescu of Romania. The site includes a very broad disclaimer of liability as well as the instruction (in red color) to "Read this whole thing first so you don't end up wasting bitcoins".

==Securities==
===Options===
The exchange offers options contracts under the American style where the buyer can execute the option at any time before the option expiry. Options may be executed at any time before the last Friday of the expiration month (up until midnight GMT of the Thursday evening that occurs before the last Friday of that option contract's month).

CALL and PUT options are priced in bitcoin and all funds for buying and selling options on this exchange occur in bitcoins. Additionally, the funds for executing options occurs only with bitcoins as well. For example, the quote for buying a call option will show a purchase price first computed in dollars but then the payment amount will be a conversion to BTCs based on the market exchange rate at the time of the quotation.

The option contract size is for one bitcoin (1.0 BTC). For example, buying a quantity of 100 CALL @5.0 contracts gives the buyer the option to purchase 100 BTC at $5.00 USD before the option expiry.

All positions are covered -- there are no "naked" short positions. For example, the seller of a 100 CALL @5.0 requires payment of 100 BTC plus the option premium to be sent to the exchange.

Quotations provided are either the best available from existing market positions offered (when size is shown under the "open" column) or are provided by the exchange's own market-making system and are good for order size of up to 1,000 contracts. Requests for quotation of larger sizes are available by contacting the exchange directly (via e-mail).

===Stocks===
Traded at MPEx are shares of various equity issues, including shares of MPEx itself.

===Funds===
Various funds are offered for trade. Individual investment fund entities are managed by the fund's owner but are traded through MPEx.

===Bonds===
Bond issues are traded.

==Account Security==

Trading transactions and withdrawal requests require the message be signed using GPG.

==History==

The exchange first operated in 2011 as MPOe (Options Exchange). In February, 2012 the exchange began offering equity positions<ref>[http://polimedia.us/trilema/2012/sa-ne-jucam-de-a-investitiile-n-bitcoini/#comment-78745 Sa ne jucam de-a investitiile-n bitcoini. (English)]</ref>, <ref>[http://bitcointalk.org/index.php?topic=64962.0 Investing in Mircea Popescu's Options Emporium]</ref>. A third party operated a fund on [[GLBSE]] that held equity in the exchange as well<ref>[https://bitcointalk.org/index.php?topic=67535.0 MPOE ETF - Mircea Popescu's Option Emporium Exchange Traded Fund]</ref>.

On April 11, 2012 MPOe was rebranded as MPEx after the beta for MPEx had concluded<ref>[http://bitcointalk.org/index.php?topic=76239.0 MPEx goes live!]</ref>.

==See Also==

* [http://wiki.bitcoin-otc.com/wiki/Option_orders Bitcoin-otc Option Orders]
* [http://polimedia.us/trilema/2012/glbse-vs-mpex-o-comparatie MPEx Comparison] versus competitor [[GLBSE]] (Romanian)
* [https://coinbr.com CoinBr - MPEx brokerage] that allows trading on MPEx without fee for creating new account

==External Links==

* [http://polimedia.us/bitcoin/mpex.php MPEx] website
* [http://bitcointalk.org/index.php?topic=67302.0 Using MPOE- A beginner's guide]
* [http://twitter.com/mpex1 @MPEx1] Twitter account
* {{Freenode IRC|bitcoin-assets}} Discussion of securities and other asset investments.

==References==
<references />

[[Category:Exchanges]]
[[Category:Futures Exchanges]]
[[Category:Stock Exchanges]]

Bitcoin Wiki - User contributions [en]

Satoshi Dice

MPEx