The problem with that is, small lotteries grow bigger and 1BTC is still enough money for bigger miners to cheat. There have been a lottery on this forum, based on the blocks in the Blockchain and the miners did cheat. I cannot find it now, but it was pretty big and the operator was a well known user in the community.
The Millionairmakers concept on Reddit seems to work, if you want to try and get a hold of those guys. Go to : https://www.reddit.com/r/millionairemakers/
The Millionairmakers concept on Reddit seems to work, if you want to try and get a hold of those guys. Go to : https://www.reddit.com/r/millionairemakers/
Unfortunately, the MillionaireMakers system suffers from a different problem: A big miner can withhold all blocks that do not result in him winning the drawing, unfairly increasing the chance that a winning block is eventually found.
The now defunct PevPot.com is an example of a system that solves this problem. It does not use the hash of the deciding block directly but instead applies a very slow (think 30+ minutes) key stretching function to it and uses its result to determine the winner. This prevents a big miner from even knowing whether any blocks he finds would result in him winning the draw until it is likely too late to submit that block. The key stretching function can be made even slower to provide even more certainty, though I do not believe it is necessary.
