ENTX, a company headquartered in Laguna Beach, Calif., says it has launched a blockchain project that "tracks tokens, digital assets and game skins."
The world of cryptocurrency and blockchain, the leading software for digital assets like Bitcoin, can be confusing. That's no different in this instance. If you ask people what a "skin," many will tell you they don't know. And those who do know have no idea how about the value of a skin.
So what is a skin?
"A skin changes the look of your character or an item used in a video game," said ENTX co-founder David Brillembourg. "For example in Team Fortress 2 they have literal hats for characters in the video games, and in Counter Strike: Global Offensive, it changes how the gun you use in the game looks. It can be thought of as the modern day trading card, because you can trade them between your friends and some are more valuable than others."
Brillembourg explains a skin is just another digital good and is a successful version of what's coming in the blockchain world.
So why is Blockchain technology being adopted by ENTX in this instance?
"Blockchain has two major advantages over traditional systems, the cheap and easy ability to transfer value and transparency," he says. "In data collection and price publishing, we can be transparent and we have the ability to pay participants and collect fees extremely easily."
"For the first time we can use a system, the blockchain' that allows us to incentivize with full transparency all of the people that want too contribute without discrimination," he says. "Full transparency incentivized global participation."
What is perceived as valuable is also changing as the digital boom transforms the world. There is the popular concept that data could be the new oil. Data may be considered a new commodity that spawns a lucrative, fast-growing industry.
Brillembourg explains the purpose of his companies move to blockchain is is to bring the combined knowledge of the world into valuing anything, whether skins or anything else.
"We want to initially be able to say a fair market price for everything that is digital," he says. "Become the appraisers of everything using the power of the crowd. And also complementing that power with big data, machine learning and Artificial intelligence."
"Gathering millions of data points on everything and then allow academia, programmers and ordinary individuals to create algorithms around that data and allowing for the collection of data to be augmented for different experiments in the system," Brillembourg adds.
More of What's Trending on TheStreet: