How Crypto Technology Can Revolutionize Cooperation Between Players
Some of the industry’s biggest games rely on cooperation between players, as developers have realized the potential of online and live-service experiences. As of writing, cooperation is strictly limited to gameplay and in-game events. However, there is an emerging technology that could change this in the future, enabling players to work together even when the game is off.
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How Crypto Works
Since 2010, cryptocurrencies have steadily gained prominence thanks to projects like Bitcoin. As a technology, cryptocurrencies were created for much grander things than gaming, but they promise to change every digital industry if they become commonplace. Today, most consider crypto an investment asset while its enthusiasts want to use it as a currency. Some of the world’s largest companies like Microsoft, Twitch, and even KFC accept Bitcoin transactions. Some sites use crypto in place of other funds, to manage stakes more efficiently at a Bitcoin casino. With all of these use cases, it’s no surprise that cryptocurrency tech can level up gaming too.
That’s where the blockchain comes in. Cryptocurrency only works because it’s built into a blockchain, a digital ledger that records all transactions. Those transactions are visible to anyone, though the identities of the parties involved are anonymized. The records can’t be changed, assuming the blockchain is decentralized, as it’d require the consent of hundreds or thousands of moderators. Blockchains enforce trust between their users, making cryptocurrency viable instead of just meaningless numbers on a screen.
Introducing Digital Assets
To date, the gaming industry hasn’t embraced cryptocurrency technology yet. Nor should they, until the tech is sophisticated enough to add to the experience, and consumers indicate that they want its benefits. However, cryptocurrencies are just the start of what blockchain can do.
The blockchain can support much more than digital currency – pretty much any kind of digital file can be recorded on a blockchain. This is done by turning the file into a non-fungible token, or NFT. For better or worse, the NFT art craze of 2021 introduced a lot of people to this idea. That was when digital artist Beeple sold 5,000 days worth of his work as an NFT for $69 million. Anybody could appreciate his art, but the new owner was officially recorded on the blockchain. In the ensuing craze, there were both creative and cynical projects whose mileage varied with audiences.
The use cases of NFT technology spread much further than art, however. During that period, some artists released music NFTs too, while e-books can also get tokenized on the blockchain. This is viable for creators through smart contracts – programmable terms attached to the digital asset. For music NFTs, many artists programmed automatic royalties, so they received a cut of subsequent sales whenever the NFT changed hands. It’s possible to attach NFTs to physical items too – think luxury brands or baseball trading cards – so that the owner of them is never in doubt.
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Smart Contract Co-Operation
That finally brings us to how gaming communities can benefit from this technology. In certain games, we already trade skins and other collectibles that only exist on-screen, with no technology backing them. By tokenizing in-game collectibles, each one would correspond to a unique place in the blockchain with a registered owner. Functional in-game items and even special quests can get this treatment, not just shiny collectibles that you can gawk at.
After becoming an NFT, skins or other collectibles are then easier to trade in a secondary market. Since that market would need to exist on the blockchain, players can trust that transactions will go through without any issues, in a wholly transparent process. If programmable royalties are in the mix, you could unearth a rare item in-game and then sell it, receiving a kickback whenever it changes hands.
We won’t see a system like this for quite some time since it relies on blockchain tech going mainstream. If it is implemented in the future, it could open up unprecedented collaboration between players as they find, trade, and benefit from their in-game adventures. In the meantime, we’ll track upcoming gaming developments on our blog.