0. Abstract

Based on the immutability of data, blockchain technology is being introduced to various fields of industries as a

solution. Online gambling market is one of the industries that is actively adopting blockchain in order to address

chronic problems caused by lack of transparency and trust. However, the tokens being issued by most of

blockchain gambling projects are in form of dividend tokens that carries potential legal issues and risks.

Blockbuster aims to solve the long lasted problems of online gambling by integrating blockchain technology and

offer utility token that is free from any dividend related legal issue.

Problems of existing online gamble market

1. High probability of manipulation in the game: In online gambling, it is difficult to find out whether the game is

manipulated in prior and the fairness of the service is always subjected to question.

2. Confirming the payment: After the users participate to the games, it is practically impossible to figure out

whether the prize money to be distributed according to the result was paid, thus requiring additional steps to

check.

3. Low accessibility: Complicated depositing and withdrawing of funds and payment methods lowers the users’

accessibility.

Solutions by BLOCKBUSTER

1. Drawing algorithm that utilizes hash value obtained from the blockchain. This enforces transparency during the

drawing process to the users and results rigging being impossible to happen.

2. Immediately visible digital wallet balance that is available right after the result of the game is out. Transferring of

prize money can be seen on the digital wallet of platform’s participants instantly and the transaction can be

reviewed on the blockchain any time.

3. Fast and easy participation to the games not only using BBX, the native token of BLOCKBUSTER, but also using

BTC, ETH and other cryptocurrencies.

BBX Token

All of the gamble services published and provided by BLOCKBUSTER will be able to be accessed with BBX and later

using BTC and ETH as well. Participants using BBX will be given additional 1% discount on the entrance fees. In case

of participating the game with BTC or ETH, the cryptocurrency will be automatically exchanged to BBX by the

platform’s simple purchasing system and betted. In the future, the users will be able to take part in BLOCKBUSTER

gamble by any cryptocurrency they wish to use. The prize money is to be paid in BTC in lump sum regardless of

participation method.

For the purpose of improving the existing utility token’s structure that the increase in use of platform and services

not affecting the value of token directly, BLOCKBUSTER designed token economy that 70% of the fees accrued on

BLOCKBUSTER platform are planned for buy-back and burning of the tokens. The result is the appreciation of

token value as the platform and services develop.

1. Overview

1. Background

Current online gambling market is valued at 15 billion USD. The growth of the market has been steadily increasing

since 2009.

< Online Gambling Market 2009-2020, Unit: Billion USD >

However, online gambling market has been having problems with illegal private gambling, manipulations, hacking

risks, high transaction fees and transparency and no clear solution has been found to this day. Major problems with

existing gambling market are stated below.

2. Problems with existing online gambling

Security

Security in gambling is the aspect that needs to be guaranteed with highest assurance, yet is one of the hardest

spot to be ensured. In 2010, due to insecure electronic system, a programmer was able to take the Hot Lotto’s

prize money and run away. In 1980s, Triple Six Fix Incident happened which the criminals were able to rig and

manipulate the lottery drawing machine making themselves the winner of 3.5 million USD prize money. Security

breaches and hackings are persistently happening.

Transparency

Existing gambling industry and its services structure is designed in a way that it is almost impossible, or very

difficult at best, for normal users to track and figure out how much money has currently pooled, who won the prize

money by how much and the fairness in the process of determining the winner. It requires tremendous amount of

effort and time to assess if the result was derived from square and fair play and procedures.

Accessibility

If a user wants to play gambling or lottery that is not in one’s country, the person needs to go through extensively

complicated procedures or just simply, is unable to play. Power Ball Lottery, which boasts to be having one of the

world’s highest first prize money, the prize money can only be claimed in 47 states in the U.S. This fact practically

makes Power Ball unable to be played who are not of U.S citizen.

Solution to the stated problems with existing online gambling by utilizing the blockchain technology has started to

appear in the market.

3. Solution by Decentralized Gambling Service

Improved security

Decentralized gambling services, by means of its system structure, can provide rigging-free and immutable

drawing algorithm that is transparent and autonomous in its processing, ultimately solving the problem in security

and fairness.

Improved transparency

Drawing algorithm and its process utilizes smart contracts which can be reviewed by the users. It makes the online

gambling services to be operated with more transparency.

Higher accessibility

Regardless of where the user resides, as long as the user has access to the transferring of cryptocurrency, the

person can participate to the gambling without any complexity. It addresses the geographical and geopolitical

limitations for those who wanted to involve. More people around the world can join and play the game together.

Figure below was presented in 2018 by ‘crypto-GAMES’. It can be observed that starting from 2014 and up to now

steady transferring of funds has been happening on a crypto gambling service. Based on the data provided, it is

clear that the demand for decentralized gambling service has been constantly there.

< Transaction price of Crypto-Games >

Decentralized gambling services such as ‘crypto-GAMESs’ solves the problems and limitations that were

continuous to existing traditional online gamble market together with keeping high level of security and

transparency. More users are steadily getting into the market, resulting diversification of decentralized gambling

services and overall development of the market.

4. BLOCKBUSTER Solution

BLOCKBUSTER’s drawing process utilizing hash values obtained from the blockchain is operated and open

transparently to the users for the reviewing. The computation of the algorithm is executed on the blockchain which

significantly reduces the risk of being hacked. Simplified payment method is applied to the system so the user

threshold to the participation is greatly lowered.

2. BBX Token

1. BBX Token Economy

< BBX Token Economy >

BBX token in BLOCKBUSTER

BLOCKBUSTER platform largely consists of BLOCKBUSTER LOTTERY, BLOCKBUSTER GAMES, BLOCKBUSTER

BETTLE. BBX, the native token is paid in order for a user to participate to the games or using BTC or ETH will also

be acceptable. Prize moeny is paid in BTC regardless of the method of participation and 70% of platform accrued

from user participation is used for buy-back of BBX tokens at market price which intends the mutual growth and

development of the platform and token altogether.

Improved user experience via simple payment interface

Using native BBX token for entering the game can positively affect the transparency and security but from the

users’ perspective, obtaining BBX token could be either troublesome or difficult. Simple payment system by

BLOCKBUSTER gamble is being developed to address such inconveniences, supporting the users wishing to instead

use BTC or ETH to take part in the games. Enhanced user experience can be expected from this feature.

Token value appreciation through buy-back

BLOCKBUSTER gets the proceeds from the participation fees the users paid for joining any of the three gambling

platforms available. 70% of such proceeds is planned to be spent for regular token buy-back operations. We plan

100% of the tokens bought back are to be burned, reducing the amount of tokens in circulation continuously.

Through buy-back operation, it can be expected that the growth of the platform will be reflected on the value of

the tokens, and appreciation of the tokens will be proportionally related to the development of the platform.

2. Token distribution and allocation

< Token Distribution Chart >

< Sale Allocation Chart >

Total supply of BBX token is 100,000,000,000. Proportions of BBX tokens to be distributed are as illustrated in the

chart above. Detailed descriptions and amount is stated in the table below.

Item Amount

Token sale 40,000,000,000 BBX (40%)

Partnership 16,000,000,000 BBX (16%)

Team 15,000,000,000 BBX (15%)

Marketing 12,000,000,000 BBX (12%)

Airdrop 4,000,000,000 BBX (4%)

Reserve 13,000,000,000 BBX (13%)

Value of 1BBX token is 0.00000002 BTC or 0.00000064 ETH (approximately ≈ 0.0001 USD)

During the BLOCKBUSTER token sales events, total 40,000,000,000 BBX will be sold. Tokens will be sold to

different exchanges or possibly, offered to the public on the exchanges directly.

Unsold tokens during the sale can be burned, locked up or can be saved for future promotional purposes.

* Amount of tokens sold in IEO or plan for the operation is subject to vary in future. The description to such changes are to be notified in

advance of the events.

* For the sake of stability in the market, the BBX tokens assigned to the Team will be locked up for 1 year starting from the date of initial

distribution of the tokens.

3. BLOCKBUSTER services BLOCKBUSTER aims to offer decentralized online gambling services that uses cryptocurrency to the users around

the world.

1. BLOCKBUSTER LOTTERY

BLOCKBUSTER LOTTERY is a decentralized lottery playing service that can be purchased using cryptocurrency as

BBX, BTC, ETH and so on. There is no limit on the number of purchases for the lottery. The player will be paying 1

USD worth of cryptocurrency that is viable for using on the platform. One round lasts for a specified time period.

Four digit number, each digit within a range of 0 to 9, will be produced by the algorithm which is the lucky draw

number for the prizes.

< BLOCKBUSTER LOTTERY service >

Distribution of lottery prize pool

Allocation of BLOCKBUSTER’s lottery prize pool is illustrated.

Prizes

Prize money is given to the players who purchased and hold the lottery ticket with the specific numbers that match

with the number produced for each ranking.

1st Prize : 50% of the pool for 1 person

2nd Prize : 20% of the pool for 1 person

3rd Prize : 5% of the pool for 5 persons

4th Prize : 10% of the pool for 500 persons

Through decentralized governance and automation of the overall operations the costs and overheads for the

running of platform can be significantly reduced. Consequently, BLOCKBUSTER’s prize pool proportion for the

players can be made considerably large.

Fees

Fees collected are used for operating BLOCKBUSTER Lottery service. 70% of the fees will be used for token buy-

back and planned to be burned. Through such process the value of BBX token can be further appreciated together

with the growth of BLOCKBUSTER platforms.

2. BLOCKBUSTER GAMES

BLOCKBUSTER GAMES are probabilistic games that the players can place bets on the assumed winning outcome

against the other players. BBX, will be used for participating the games. But in future, BTC and ETH will be accepted

as well.

BLOCKBUSTER Dice

< Mock-up image of BLOCKBUSTER Dice >

BLOCKBUSTER Dice is played by throwing virtual fair dice having probable outcome to be ranging from 1 to 100.

The players can bet on the outcome of virtual dice thrown to be either less than 49 or greater than 52. The winners

will be paid double to the amount betted. The losers will lose the amount betted.

Roll < 49

When the dice shows an outcome to be less than 49, the players on ‘Roll < 49’ will win and get the doubled amount

of the bet.

Roll > 49

When the dice shows an outcome to be greater than 52, the players on ‘Roll > 52’ will win and get the doubled

amount of the bet.

Roll 49~52

When the dice shows an outcome to be in range of 49 to 52, all the bet placed in other two sides will be collected

by BLOCKBUSTER platform. 70% of the winning for the platform will be used for buy-back of BBX tokens at market

price.

BLOCKBUSTER Ladder

< Mock-up image of BLOCKBUSTER Ladder service >

BLOCKBUSTER Ladder is played by the players choosing any of the given choices 1, 2, 3 and 4 within a given period

of time and bet the cryptocurrency on one’s chosen number. The winning players are the ones who placed the bet

on the matching number that is drawn by the system. Prize money is composed of all the bets made during the

round and 4% of the amount is paid to the platform as a fee. The prize money is divided according to the weight of

each player’s bet for the all the betting made on the winning number. Bets made on the lost sides are not to be

returned.

BLOCKBUSTER Heart and Spade

< Mock-up image of BLOCKBUSTER Heart and Spade service >

BLOCKBUSTER Heart and Spade is a game of chance that the players choose and bet cryptocurrencies on Heart or

Spade side and the winner is the one who has chosen the card that was to be drawn later. At first the players place the

bets on either Heart side or Spade side within a given period of time. The players wait till the time is over. Public

drawing begins as the game starts. When a card drawn is the one that certain player had chosen in the previous stage,

then the player claims the winning from the betting amount made on the other side. The winners’ prize amount is

one’s betting amount multiplied by 1.98. The losers do not get their betting back.

3. BLOCKBUSTER BETTLE

< Mock-up image of BLOCKBUSTER BETTLE >

BLOCKBUSTER BETTLE is casual web-based game and P2P betting platform that the players compete each other by

achieving the higher score than the other in the web game provided. Player with the higher score than the following

player wins and eligible for claiming the prize. Playing each round of the game requires certain amount of

cryptocurrency to be paid. The scores achieved by a player and another player next are compared consecutively each

round. The player who scored higher wins. The next coming player will be competing against another player coming

consecutively. The prize money is 1.85 times the amount paid for the game. The lost player does not get his money

returned. 15% of the prize money is deducted as a fee for the platform. 70% of the fee then is spent for acquiring BBX

tokens at market price.

Various other gambling services are being planned for future launchings. Contents of services are subjected to be

changed according to the development of the platforms

1. Decentralized drawing algorithm solution

BLOCKBUSTER has developed a decentralized drawing algorithm for guaranteeing the transparency that is

technically assured as well as optimizing the Gas fees and better speed in execution. The following solution is to be

applied to BLOCKBUSTER Platforms and any external decentralized services utilizing BBX tokens.

Problems with existing blockchains’ transaction performances and fees

For any online gambling service to bring positive experience to its end users, it is essential for entire process to be

fast and continuous free of interruptions. However, from the blockchain platforms currently available, such

requirements cannot be satisfied in terms of both transaction speed and network stability. Furthermore,

BLOCKBUSTER plans to deal with multiple kinds of cryptocurrencies derived from other blockchain networks.

Assuming that entire operations for the gambling services to be conducted on the blockchain, Different

transaction speed for different kinds of cryptocurrency could come as a serious problem. Also, since all the

transactions for gambling services being played would incur transaction fees, conducting such business comes as a

costly one.

Solution by BLOCKBUSTER

If every each time a player participates to lottery incurs transaction in the blockchain, the player’s state whether

the one was successfully joined the game can’t be known immediately and would pay fees for the transaction. It

would be a tremendous setback for user experience. To solve such problem, BLOCKBUSTER would run the drawing

algorithm that utilizes hash value from live blockchain on a centralized server.This approach allows for utilizing

blockchain data without incurring costs for Gas. Increased process speed also enable for checking the player’s

joining status to the game instantly.

Decentralized drawing algorithm

1. Once the sales goal for lottery is met, the algorithm takes the hash value from the live Ethereum blockchain’s

latest block from ‘etherscan.io’.

2. Cut out the four digits1) from the end of the hash value taken. Sort out any alphabet letter contained and leave

only the numbers.

3. For the given instance above, the last batch ‘5574’ becomes the number for determining the 1st prize.

4. With the number obtained for determining the 1st prize, add itself to it and take again the last four digits1) of the

number. The second number becomes the lottery number for determining the 2nd prize winner. In case where the

obtained last four digits of the hash is all in alphabet (qwer) or 0000, 10000 is considered to be the determining

number for the prize.

5. If no user has matched the number produced by algorithm, that number is invalid for the game. And the number

in the second from the last is considered to be the determining number.

6. When the number appeared is repeated from a past round, that number is considered being invalid since that

moment. If the invalidation happens 100 times consecutively2), the number will be produced from the second last

batch. For above instance, ‘47’ will be the new starting determining number in case ‘5574’ is invalidated. And the

same methodology applies to ‘47’ for determining prize winners in descending order such as ’47, 94, 141, 188…’.

1) Sales goal at 10,000USD, digit for the batch is increased from four to five in case the sales goal is 100,000USD or above.

2) For example, when the first batch of the digits are ‘qwer’, the determining number for the 1st prize is considered to be ‘10000’. In this case,

since the result for calculating for obtaining number for the following winner will always be ‘0000’, the input will be taken from the second last

batch of the hash value gotten.

2018.Q1~Q2

Designing token economy and writing the white paper.

2018.Q3~Q4

Developing the platform and token.

2019.Q1

IEO or token sale.

2019.Q3

Launching of LOTTERY, BLOCKBUSTER’s first gambling platform.

2019.Q4

Developing and launching BLOCKBUSTER GAMES and BLOCKBUSTER BETTLE.

2020

Continuous development and launching for other games and services.

John Kim

CEO

Serial Entrepreneur, 10+ years of experience in Software management.

Projects worked on: Samsung, Lotte, Ogilvy&Mather Korea,Burson-

Marsteller Korea, HAKUHODOCHEIL, Unicef Korea, GREENPEACE Eastasia

Albert Kim

COO

10+ years of experience in Finance and Business development.

Worked in: PROOF SUITE, MOODY’S , BGC PARTNERS

Duke University, Columbia University.

Steve Cho

CTO

10+ years of experience in Software engineering.

Projects worked on: Bithumb, Bighit Entertainment.

The State University of New York at Stony Brook.

Jaclyn Holmes

CMO

5+ years of experience in Business development. Projects worked on:

Adidas, GM Korea, Samsung, Amore Pacific, KT&G.

University of Cape Town.

Disclaimer

BLOCKBUSTER (the team here on) has created this white paper for reference purpose to provide information on

platform, business model, related technology, and token of various purposes.

This white paper is not to suggest investment on the team or BLOCKBUSTER project, and is not relevant at all.

BLOCKBUSTER team is providing this white paper based on the period it was written (as is).

Contents of this white paper do not confine BLOCKBUSTER team and project, and may be changed due to

continuous research and development of BLOCKBUSTER project. This white paper does not compose consultation

related to investment, legal, taxation, regulations, financial, accounting, and others, and does not have a purpose of

offering evaluation standards. Any part of this white paper cannot be regarded as suggestion of any kind.

BLOCKBUSTER does not guarantee accuracy or properness of any content including BLOCKBUSTER project

schedule of future roadmap and time you read this white paper, as well as achievement, and conclusion.

BLOCKBUSTER will not state or guarantee accuracy of any matter to the ones reading this white paper, and will not

take any legal responsibilities.

BLOCKBUSTER team will not guarantee

1) If the white paper is written based on legitimate right and does not violate right of the third party,

2) If the white paper is commercially valuable or useful,

3) If the white paper is suitable for you to achieve a specific purpose,

4) If there is any error in the contents of the white paper, and

5) If it is legitimately written, distributed under BLOCKBUSTER team’s or your countries’ legislations, or if the

contents have violated legislations of your countries.

Responsibility waiver is not applicable for these examples.

If you have used this white paper (including referencing this white paper and using it as basis, but is not limited to),

for your decision making or actions, following results, regardless of profit or loss, it entirely up to your own

decision. If damage such as loss or debt occurred by using this white paper, BLOCKBUSTER team will not provide

project related information. Information of the white paper written in Korean can often be translated into other

languages. During translation process, partial information from Korean white paper may be missed, changed, or

wrongly translated. Accuracy of substituted communication cannot be guaranteed. If contradiction or discordance

occurs between translation and official Korean white paper, Korean original white paper will be first applied.

Citizens of Republic of Korea (Korea here on) will not be possible to use and participate to the services

BLOCKBUSTER team plans to develop. All the attempts to use the platform bearing IP address of Korea will be

restricted and banned from such actions. BLOCKBUSTER is free from any legal responsibility in the situation where

any individual from Korea is facing disadvantage, charging and/or any court actions for using the services provided

by BLOCKBUSTER team.

This white paper cannot be copied, used, leaked externally without consent from BLOCKBUSTER team.

This white paper will be updated in the future. So, please use this white paper only as reference and check official

website (http://blockbusterlottery.io/) for final contents.