Chain Your Loot: Implementing Blockchain into Gaming Loot Box Markets

Concerns regarding loot box fairness, along with increased exploitations of video game players and a lack of trustworthiness in video games and their merchandise, continue to rise, yet these issues have received limited attention and research. In response, this study introduces an Ethereum blockchain-based solution aimed at addressing the lack of transparency and fairness in loot box markets. Emphasizing transparency, fairness, and player trust, our model employs smart contracts to disclose reward probabilities to players, promoting informed decision-making. Central to our approach is the integration of a Random Number Generator (RNG) within the smart contract to ensure impartial outcomes. Deployed on the Sepolia testnet, designed to closely replicate the real Ethereum mainnet, our evaluation highlights improved transaction transparency and fairness. Analysis of Sepolia testnet's performance provides valuable and positive insights into blockchain operational dynamics. This paper contributes to ethical gaming practices by proposing a framework that could reshape how virtual rewards are managed, advocating for blockchain adoption to enhance gaming equity.

I. Background and Introduction

In recent years, the gaming industry has experienced a surge in in-game purchases, especially loot boxes, which are virtual items containing random assortments like cosmetic enhancements, weapons, or characters. The loot box market has expanded significantly, evolving into a multi-billion-dollar industry globally [1].