Reducing Uncertainty through ‘Smart’ Contracts

It is not the first (and it certainly will not be the last) time you read this: blockchain and the associated technologies will disrupt and eventually radically evolve every industry.

The huge financial projections for esports have resulted in bigger and more franchised leagues, esports tournaments and much higher prize pools, salaries and sponsorship deals. Esports is essentially evolving the way we consume content, and thus has the ability to reach audiences unlike ever before. With so much money at stake within this nascent industry, uncertainty will play its part in decelerating the esports impetus, naturally.

In an earlier article, we discussed the impact of the disproportionate distribution of power between players and game companies; namely, the detrimental effect it would have on attracting outside investment. You can read this by following the link below.

Later, we provided our solution to maintain a grassroots focus that will be dedicated to nourishing the competitive gaming industry from the ground up, which is also available below.

Esports: The grass is not always greener…

Being a professional gamer may seem like most people’s ideal careers — and for the most part it is; yet when money is involved, the potential for manipulation is high. Considering most esports players are young, and therefore naive in terms of comprehending the seriousness of entering contractual agreements, sponsorship deals, and so on, players being taken advantage of is rife across the industry. Compared to traditional sports, esports careers are extremely short, which means protection of players is central to maintaining the industry’s growth. Due to the infancy of the industry, there are currently very few support mechanisms that prepare these young players for navigating their careers outside of competing.

Last week’s climactic conflict between FaZe and their former player Tfue’s illustrates just how manipulative and unfair these contracts can be. For weeks, Tfue had publicly called for FaZe to agree to allow him to release details of his contract, so he could expose just how terrible it was. In this initial contract, FaZe had the ability to demand 80% of Tfue’s earnings at any point during the contractual agreement, a clause that breaks multiple Californian laws. Not only this, but FaZe also had the final say on the sponsorship deals Tfue could enter.

Reading contracts prior to signing should go without saying; what’s more, Tfue acknowledged that he should have in fact read the contract with scrutiny prior to signing. However, as most aspiring esports stars are young, and thus do not fully comprehend the various clauses and stipulations, the majority do not. They are just eager for the support to pursue their passion. This is a pressing issue that has seen other, more mature and established, industries put measures in place for. There have been many that have called for esports athletes to be viewed in the same regard as traditional sports stars; where they are able to seek employment advice or support separate of that from their employers.

Smart Contracts in Esports

The constructs of smart contracts will vary between blockchains, so when referring to smart contracts in relation to Intergalactic Gaming, we are referring to those that operate on the TRON Virtual Machine (TVM). IG Gold (IGG) is the central token that runs through our competitive ecosystem; this token is a TRC-20 token standard, and therefore operates on smart contracts.

Smart contracts are essentially computer protocols intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. They help the exchange anything of value in a transparent conflict-free way. As smart contracts exist on a decentralised network, it removes the need for intermediaries, which in turn saves time and money, particularly when it comes to overseas payments.

Due to the decentralised nature of the blockchain, smart contracts will be verified by a network of distributed ledgers, who like middlemen, will legitimise agreements. The fact that the blockchain is immutable and available in the public domain upholds honesty, integrity and transparency at all times. Additionally, smart contracts, in essence, are programmed codes which, unlike traditional contracts do not posses the complex jargon that often forges loopholes to exploit. The FaZe-Tfue conflict can be viewed as a microcosm of the issues many professional gamers in the esports community have, and will continue to face.

Below is an example of a generic smart contract that could be given to a player; as you can see, the terms are clearly set:

Player A will receive X for representing the team and completing a match
If Player A’s team win the match, Player A will receive X + Y (bonus)
If Player A’s team lose, Player A will only receive X

For explanatory purposes, this is a very simplified version of a smart contract — further criteria may be added depending on the creator of the contract; however, this must be prior to the the player confirming the agreement. If Player A completes a match whilst representing the team, win or lose, they will receive their pre-agreed payment; these resources can subsequently be stored indefinitely where again it cannot be removed or edited, or an escrow.

The introduction of smart contracts will effectively serve to provide gamers entering these agreements with a higher degree of control. The contract’s ability to impartially ensure that the terms of the agreement have been adhered gives far more security to less experienced players, and teams and/or tournament organisers will have no choice but to honour the payments to their players. Furthermore, to ensure fairness for all parties, teams can also include certain performance based clauses, which would give them the right to reduce payments, or even terminate contracts, should the severity of the situation demand it. Smart contracts in esports, for the most part, are undoubtedly needed.

Activating IG Wallets!
Intergalactic Gaming will firmly advocate for the integration of blockchain into esports, particularly by demonstrating its effectiveness in the realms of grassroots competitive gaming.

In the long-term, our effectiveness at the esports level will be measured by our ability to captivate the grassroots demographic; to do so, smart contracts will thus be the backbone of integrity for players and teams and stakeholders alike within the IGGalaxy.

With the recent launch of IGLabs, we deployed our platform’s wallet feature that will serve as a vital component within our competitive gaming ecosystem. Our IGG token, as previously stated, will allow for the instant distribution of prize pools that will serve to ensure players, regardless of professional experience or expertise, will be less likely to fall victim to certain contractual loopholes. Smart contracts to ensure honesty and transparency for payments within the IGGalaxy are but one solution the integration of blockchain will provide for the industry.

To keep up to date with developments, please follow us on our various social media channels:

Website: www.iggalaxy.com
Medium: https://medium.com/@IGGalaxy
Twitch: https://www.twitch.tv/igg_esports
Discord: https://discord.gg/5kx4tKR
Reddit: https://old.reddit.com/user/Intergalactic_Gaming
Twitter: https://mobile.twitter.com/IG_Galaxy
LinkedIn: https://www.linkedin.com/company/intergalactic-gaming
Telegram: https://t.me/IGG_Official

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Intergalactic Gaming

Intergalactic Gaming

Building a next-gen social competitive gaming and esports platform that empowers gamers and teams! 👽