Now, think back to all those hours, days and weeks you spent playing video games a kid, teen or fully grown adult, amassing huge inventories of in-game items only for it all to be consigned to the digital dustbin as soon as the final boss fell or the next instalment of the franchise came out.
But what if all that digital swag could be liquidated and sold on for personal profit? Or used in other games? Or even treated as an appreciating ‘rare’ asset as part of your grown-up, balanced portfolio of investments?
Well, amazing as it sounds, that’s exactly where the market for in-game digital items is going, enabled by the blockchain, and it’s going to revolutionise current notions of so-called in-game economies. It will allow us to ‘tokenize’ in-game items, which means players own the assets they have purchased, whether that’s a weapon or a piece of clothing for their character.
Introducing… the tokenized and collectible digital asset. Here comes the science — You see, using the blockchain we (in fact, anyone) can create unique, rare, limited edition digital assets (otherwise known as Non-Fungible Tokens, or NFTs) that can be bought, collected and securely traded clearly and transparently, with no risk of copyright infringement and no quibbles about ownership.
But, whatever with the underlying technology, what’s important here is the blockchain’s ability to unlock new revenue streams for ALL branded IP, not just digital items in video games. This will mark a sea change for non-digital products — in short, any brand can now gamify its IP, make it collectible and in the process create an entirely new ‘secondary’ market for itself.
Are you a sneakers brand? Allow owners to prove their ownership on the blockchain and trade with others without the boxed product ever leaving the warehouse. Have a huge back-catalogue of retro action figure IP? Ditto. Classic cars? You guessed it — suddenly we have new secondary markets where your customers can trade your goods, physical or virtual, safely and securely.
Crucially, two things need to be in place for everyone to bask in the warm rays of tokenized and collectible digital assets:
1/ A flourishing ecosystem where developers and brands can worry less about building the necessary technology and more about the exciting business models it makes possible.
2/ Great content and products.
At Reality Gaming Group, we’re tackling both of those necessities head-on, though perhaps not in the order you’d expect.
We realised the potential of blockchain-based collectible digital assets while developing our flagship mobile AR combat game, Reality Clash. We issued our initial investors with tokenized in-game weapons as a reward for supporting us, which quickly snowballed into a fully-fledged decentralised in-game marketplace, with its very own Armoury store and trading platform.
And with almost three years of experience behind us, we’ve now decided to tackle the ‘eco-system’ part of the above equation by making our Digital Asset Trading (DAT) Platform available to third party developers and brands looking to create similar experiences.
For brands, developers and publishers, DAT does all the heavy lifting: taking the original asset (in-game weapon, sneaker, car) and putting it on the blockchain; creating a bespoke storefront where the tokenized assets can be bought; deploying a decentralized marketplace where the assets can be traded; and, if required, either building a game in which the assets can be used or placing the assets within an existing title.
Sounds exciting, doesn’t it? We’re now actively looking to engage with partners who are looking to unlock the potential of their IP in secondary markets, whether that’s a game or physical product, retro to or the Next Big Thing.