Social Contracts in the Digital World
To fully grasp the meaning of this article, we have to define what social contracts are. In simple words, social contracts are the unspoken agreements and rules we follow every day. Whether it's helping elderly people, greeting someone we know, or not insulting random people when we are angry. However, social contracts are much more than this; they are the very essence of mechanisms within society. And as society becomes more digital by the day, so do social contracts.
To illustrate this, let's think about platforms like Uber, Fiverr, or Airbnb. People use those platforms on a daily basis as they are core service providers in many parts of the world, making it seem obvious to modern people. However, if we take a step back, we will see that we find ourselves entrusting strangers to drive us home, we live in other people's homes, and we outsource tasks to freelancers we've never met.
Embracing Social Contracts
The gaming industry mirrors the advancements of the digital shift in society becoming a microcosm of various agreements that often anticipate changes that are about to occur. One of the most popular multiplayer games - CS:GO, has placed a high importance on intense rivalry between individual players and/or teams, capturing the core essence of gaming, i.e. competitiveness where for every winner there has to be a loser. This way, games started to nurture the spirit of competition based on well-established social contracts we can often find within our society. However, as digital progress propelled gaming forward, players still had to rely on social contracts in areas not covered by the gaming industry. This created a disparity, as gaming worlds struggled to replicate the authentic, multi-level relationships found in everyday society.
A prime example of a game economy based on various social contracts that extend beyond the game itself is EVE Online. While the game offers a solid set of mechanics and interactions, its worldwide popularity has been built on player-crafted social contracts rooted in social reputation and player-established hierarchies within guilds, i.e. the very same unwritten contracts our society is based upon. However, when game economies rely on the fragility of verbal agreements, it's only a matter of time before the dominos start to fall.
This is where blockchain technology, with its programmable smart contracts, enters the scene. The future of social contracts in digital environments must emulate the rules of modern society, where malicious behaviors are penalized and restricted by law, rather than relying solely on social agreements that can be easily broken without any or major consequences other than the loss of trustworthiness or social reputation.
Digitizing Social Contracts with Blockchain - Players’ Perspective
The following paragraphs will illustrate the benefits of digitizing social contracts by bringing them on-chain and setting rules in stone with the help of Smart Contracts. Below, you will find the list of benefits we are going to explore. Let's delve deeper now.
- Digital Ownership
- Verifiable Reputation
- Verifiable Gameplay
- Secure and Fair Environment
- Improved Value Accrual
- Secondary Market Liquidity
- Secure Payment Infrastructure
Digital Ownership
The notion of true ownership of in-game assets is a persistent theme in blockchain gaming. Every asset, whether it's a skin, an in-game item, or a purchased boost, is entirely owned by the player and stored in their wallet. This not only grants players the freedom to use these assets as they wish but also provides security in the event of a game's failure. Consider the extreme scenario where a game like Fortnite goes under, resulting in the loss of all assets owned by players. In blockchain gaming, even if a game no longer exists, the assets remain the player's property. Furthermore, other parties may potentially acquire these items on a secondary market. If not, these assets still retain collectible value.
Verifiable Reputation
While some esports titles provide services for checking a player's history and in-game reputation, these services are limited to a few games. Even if players wish to investigate this data independently, it's often impossible because centralized entities store the data making it inaccessible. In blockchain gaming, everything of significance is stored on the blockchain, enabling every player to confirm their opponent's history and reputation. Whether it's game history, in-game assets, achievements, or historical stats, all of these can be securely stored on-chain and made accessible for verification or review by everyone. The decentralized nature of blockchain technology also simplifies the collection and creation of extensive data libraries. This means that players can search for the reputation and gameplay history of any player in any game.
Verifiable Gameplay
In addition to verifying a player's reputation, blockchain technology allows for the seamless verification of gameplay. Technologies like In-Game Oracles, serving as impartial arbiters, provide players with the ability to confirm specific gameplay instances if they suspect foul play or cheating, even in the presence of existing security measures. In contrast to the isolated data of centralized games, in blockchain gaming, players can authenticate inputs made by others to guarantee that game results are fair, and winners are determined solely by the skill they demonstrated during gameplay.
Secure and Fair Environment
Furthermore, blockchain gaming provides a secure and equitable environment supported by several crucial factors. Smart contracts, with their programmable characteristics, guarantee the correct distribution of rewards and thwart dishonest behaviors such as withdrawing funds after a loss but before reward settlements. Furthermore, the open-source nature of the data facilitates the establishment of a self-reinforcing reputation system. This system ensures players a superior experience by diminishing occurrences of cheating and toxicity which are a common issue in traditional gaming.
Improved Value Accrual
Broadening the possibilities for diverse monetization methods extends the value accrual level for all involved parties, encompassing players, creators, developers, and the game itself. Such an approach not only draws more users but also elevates the game's appeal. Additionally, cross-chain interoperability permits the engagement of players from multiple ecosystems rather than depending on a single blockchain, ultimately expanding the potential user base.
Secondary Market Liquidity
The notion of true ownership of in-game assets fundamentally transforms the entire gaming economy. It not only facilitates personal ownership but also ushers in a secondary market mechanism, a characteristic frequently absent in most titles. Reflect upon skins in Fortnite or League of Legends, where there is usually no legitimate avenue for selling or exchanging these items apart from selling the entire account through unofficial channels. The incorporation of a secondary market rectifies this constraint, allowing players the freedom to sell or barter rewards and prior purchases as they see fit.
Secure Payment Infrastructure
One of the primary concerns associated with blockchain gaming is the fear of losing one's funds. Nonetheless, with a resilient infrastructure and smart contracts subjected to rigorous testing, participants can take part in the game with assurance, understanding that their assets are safeguarded. These assets can either be retained in their individual wallets, only transferable subsequent to the game's resolution, or housed within a dedicated entity, akin to a personal in-game account.
Conclusions
The gaming world must embrace technology that enables the implementation of more advanced mechanisms within the realm of social contracts and player interactions. This is the only way the gaming industry can fully embrace true competitiveness within games and foster communities that breathe life and activity into the games.
The following statement encapsulates the very essence of what is to come once blockchain technology becomes an integral part of the gaming world.
"Smart Contracts are the new Social Contracts in the world of future gaming."
