# Application vs Protocol

Megapot consists of two distinct components: the **Megapot Protocol** and the **Megapot Application**. Understanding the difference helps clarify how the system works and what options you have for participating.

## The Megapot Protocol

The Megapot Protocol is a set of smart contracts deployed on Base (an Ethereum Layer 2 network). These contracts handle all lottery operations—ticket sales, prize distribution, backer management, and referral tracking.

The protocol is **fully on-chain and permissionless**. This means:

* **Anyone can interact with it directly** through the [smart contracts](https://docs.megapot.io/learn/using-smart-contracts)
* **All transactions are publicly verifiable** on the [blockchain](https://basescan.org/address/0x3bAe643002069dBCbcd62B1A4eb4C4A397d042a2)
* **The rules are encoded in** [**code**](https://github.com/coordinationlabs/megapot-v2-public), not controlled by any single entity

### Interact Directly With the Protocol

You can interact with the Megapot Protocol directly through Basescan without using any application. This allows you to buy tickets, claim prizes, manage Backer positions, and more—all by calling the smart contracts yourself.

[**Learn how to use the smart contracts directly on Basescan**](https://docs.megapot.io/learn/using-smart-contracts)

## The Megapot Application

The Megapot Application is the web interface at [megapot.io](https://megapot.io). It provides a user-friendly way to interact with the Megapot Protocol, including:

* Buying tickets with an easy-to-use interface
* Viewing drawings and checking results
* Managing Backer positions
* Tracking referral earnings

The application is **one way to access the protocol**, but not the only way.

### Licensed Gaming Operator

The Megapot Application is a [licensed gaming operator](https://docs.megapot.io/appendix/gaming-license) that must adhere to gaming regulations. This includes requirements such as:

* Know Your Customer (KYC) verification for certain activities
* Responsible gaming protections
* Geographic restrictions based on regulatory requirements
* Compliance with applicable gaming laws

These requirements apply to the Megapot Application **only**. The underlying protocol remains permissionless, but applications built on top of it may have their own compliance obligations.

## Key Differences

|                  | Megapot Protocol                  | Megapot Application                                   |
| ---------------- | --------------------------------- | ----------------------------------------------------- |
| **What it is**   | Smart contracts on Base           | Web interface at megapot.io                           |
| **Access**       | Permissionless, open to anyone    | Publicly accessible website                           |
| **Regulation**   | Code-based rules only             | Licensed gaming operator with compliance requirements |
| **Alternatives** | None                              | One of many possible interfaces                       |
| **Data**         | All on-chain, publicly verifiable | Displays on-chain data                                |