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title: A Decentralized Economy for Games

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# A Decentralized Economy for Games

## Introduction

We are going thorugh revolutionary changes in way of how we store and interpret value. With the strong adaptation of the Internet and accesability of more powerful computers, there is a parallel structure in our lives. We have meta-personalities that is present in the Internet, that participates in events, exchanges meta-values that backed by no real commodities. In this structure, games have a big portfolio of users and participants, where some of the games have their closed economies. With the introduction of decentralized distributed networks, we believe that there is a way of connecting these economies and create a competetive market where both producers and creators can benefit. 

## Problem
We all have played online games. Whether we have bought some skins for characters, wrappings for guns or some pets to fiddle and enjoy around. While there are many more of these examples, they all have to be closed in the universe of the game, or they represent value only it that games economy. You can't exchange the skin you have obtained in `Game1` to some character you want in `Game2`. Even though you might have bought it with the same currency, say dollar as the medium of exchange, there is still no trustless exchange that can connect the exchanging partners. This means that you can't also exchange the time and labor you have spent for `Game1`. What we try to solve with our protocol is the illiquid trusted markets of game economies. We want to build the exact oposite of that, liquid decentralized markets of game economies. Here are some illustrations for clearance:![](https://i.imgur.com/dFdmSqI.png)


With the examples of standards such as `ERC20` and `ERC721`, we have seen that it's possible to trade any two tokens that obeys a standard. While the in-game tokens of `Game1`, will be called as `TK1` can be wrapped as `ERC20` tokens, the in-game tokens of `Game2`, will be called as `TK2`, can be too. In this way, we can trade them in a decentralized exchange that utilizes mechanics such as `AMM`'s to create liquid markets. We can also wrap the one of the skins that used in a character in `Game1`, will be called as `S1`, that obeys `ERC721` standard to create a non-fungible token that represents unique owner. In this way, some decentralized protocols such as [Opensea](www.opensea.io) can be the trustless platform the exchange other in-game values with other games. 

To wrap up, we can see that we have two main problems:
- There is no solution of a decentralized escrow that will allow us to exchange non-fungible unique values between two closed economies. 
- There is no liquid decentralized automated market that allows us to exchange two different closed economies medium of exchange.

## Solution

We believe that this is a perfect problem to be solved by using a mix of a new blockchain technologies that appear and use existing, proven standards that is heavily utilized in blockchain space. We need a network of networks, where every game needs to have their own closed network that won't be distrupted by other game, but they must be able to exchange their in-game values in a decentralized free market. The protocol will be the blockchain of blockchains, as [Polkadot](https://polkadot.network/) suggests. We want to use their blockchain framework called [Substrate](https://substrate.io/), which seems to be perfect tool for the problem. Why ?
- The communication protocol between two different chains.
- The SDK that is heavily flexible and available for us to built upon. 
- Easier integration with the outer world of the private chain. 
- An existing chain that is developed upon, with high usage and proven stability.
- Some custom execution layer that every game can modify. 

The solution must be applied in phases. There might be two types of games that want to connect our protocol.
- A game that is already existing and they have their own economy, own user base.
- A game that is in the thought process, that can be built around the protocol.

The first type of games they need some handles to connect to the network. Their existing infrastructure should not be have to manipulated too much. The second type of games should be able to seemlesly create handles, with a `SDK`. The both of them must be able to test easily with a purely local network, monitor their local and global network extensively and should be proven that there is security in the network.

## Conclusion
Overall, we want to create the economy of games. From competitve zero-sum games to MMORPG's, indie games to casual mobile games, a single network that can connect their economies is the ultimate network we want to create.