Smart Contracts provide an immutable, instant contract on a digital ledger. They can be very useful for gamers. In the article below, we discuss their possible uses in gaming and beyond.
The truth about the blockchain is that very little of it has yet to have practical applications for the majority of society. Even in industries where it should be fully integrated, such as gaming, companies are still backing off the use of these technologies. This has led to a lot of hype around what these systems can potentially offer. So just how much potential do Smart Contracts have for gamers? We discuss this in the article below.
What are Smart Contracts
Smart Contracts are agreements placed on the blockchain, that self-execute once the designated criteria are fulfilled. They are decentralized, meaning no third party holds the rights or obligations over them. This can provide a range of benefits, such as lower costs and faster transaction times.
They have gained a lot of interest in finance. For example, they could massively speed up the real estate industry and increase security. A person provides the details required, as do other parties, and contracts are self-executed. Everyone then walks away with the right payment and property. There is no underwriting from a lender, passing it to an agent, and so forth. Once a person has done their part and others do theirs, the contract is created automatically and the property rights are moved.
Smart Contracts in Current Gaming Circles
When Smart Contracts are discussed in gaming, they are usually tied to the provision of in-game assets. This may include loot boxes, skins, or buying and selling items. However, games that use smart contracts and non-fungible tokens like this are often separate from mainstream gaming entities.
One area that has tried to forge ahead with innovation in blockchain technology is the iGaming sector. Here, casinos built on blockchains have been around for a few years. Often known as Altcoin casinos, they allow payments in digital currencies other than Bitcoin (Altcoins).
The advantages of this are numerous. Payments both in and out are faster and more secure. Without third-party control, fees are also reduced. As games are stored on the blockchain, they also have a higher level of transparency. Being free from so much red tape also allows them to be much more innovative. For example, the Aviator and crash gaming phenomenon emerged from the Altcoin casino scene.
However, much like the gaming scene, the online casino realm is split. There are standard code casinos that may allow cryptocurrencies as payment, then there are ones actually built on the blockchain that use Smart Contracts. There is very little overlap between the two, or the former using elements of the latter.
Advantages of Smart Contracts for Gamers
The most useful advantage of Smart Contracts would be the automation of in-game assets and transactions. If games could create in-game digital currencies, this would push up their ecosystem to unprecedented levels. With smart contracts, once conditions are met then this can be executed. You may find if all your teams achieve a certain goal, you could all be automatically and instantly rewarded.
This also brings a certain level of security. The level of hacking that takes place on third-party marketplaces for skins and items would be a thing of the past. This is particularly useful in the age of data protection and increased online activity from thieves.
When it comes to the games themselves, this integration could really enhance gameplay. Specific actions may be triggered at certain times in featured events. They could also govern how rules and upgrades are applied.
When it comes to Esports, they also allow a lot of scope for improvement with the application and organization of the sport. As a culture that is still emerging, this could be implemented now and driven from the ground up. This could include the logging of player statistics and match results. This could later be accessed by everyone from fans to event organizers.
At the most basic, it can also be used when players switch teams. Contracts can be executed on the blockchain, making them fast and easy for everyone involved to see. Sponsors will find this much easier to use, particularly if they want to track stats and make offers to players who hit certain criteria. Even performance-based bonuses could be provided in this manner.
The truth is that Smart Contracts can be extremely useful. However, they need much more integration for anyone to start taking notice of them. It may be that they are ahead of their time, or we may need a major scaling up of blockchain to provide the experiences modern gamers need. Making these steps could take a few years, or it could take 20. We just need to hang onto our controllers and wait and see.
