Exclusive: Major League Baseball is going crypto

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Later this summer, Major League Baseball digital collectibles are coming to the Ethereum blockchain. Lucid Sight, a blockchain gaming company, is launching MLB Crypto Baseball, through a licensing deal with MLB.

Baseball fans might ask: Huh?

Ethereum, launched in 2015, is a decentralized platform for “smart contracts,” which are automated agreements for an exchange of value. It runs on a blockchain, the same peer-to-peer, immutable, public ledger technology that bitcoin runs on. The cryptocurrency of Ethereum is ether. (So ether is to Ethereum as bitcoin is to the bitcoin blockchain.)

Because of Ethereum’s usefulness for smart contracts, it has become a proving ground for blockchain-based games, where users collect and trade one-of-a-kind items that no one can duplicate or steal. On a blockchain, each digital item (or contract) is verified and tamper-proof.

The most popular blockchain game has been CryptoKitties, in which users buy and trade unique digital kittens, and pay for them in ether. The game launched in November and has been extremely popular among crypto fanatics; users have spent $25 million worth of ether on CryptoKitties to date.

MLB Crypto Baseball promo image (via Lucid Sight)
MLB Crypto Baseball promo image (via Lucid Sight)

And now MLB is following suit. In MLB Crypto Baseball, users will pay in ether to buy digital avatars tied to specific moments in recent games. They can then sell the items, or in some cases, earn rewards and stickers. The game is a decentralized app, or “dApp.”

‘We talked a long time ago about bitcoin’

Kenny Gersh, MLB’s executive VP of gaming and new business ventures, says that MLB has been eyeing cryptocurrency for a long time, and rejected other ideas before settling on doing a game with Lucid Sight.

“We talked a long time ago about bitcoin and whether we should accept it as payment for MLB.tv and some of our other products, and we opted not to,” Gersh says. “At the end of the day we decided that isn’t our business, we’re not in the speculation business. We’re in the business of delivering baseball to fans. So this game is a more interesting intersection of blockchain technology and what we do.”

CryptoKitties had a direct influence on the new MLB game. “We were already talking to Lucid Sight around the time that CryptoKitties first came out,” Gersh says, “and then CryptoKitties sort of validated it a little bit more.”

Cryptokitties.co home page
Cryptokitties.co home page

Pro sports jumping on the crypto trend

Just last month, the NBA’s Sacramento Kings announced they will begin mining ether and donating the proceeds to a local charity. MLB is the second pro sport to hop on the crypto trend, but it is doing something very different from the Kings, and doing it league-wide.