Elite Dangerous Close Quarter Combat

CQC is Elite Dangerous' instant-action PvP arena where two teams or individuals compete in a multiplayer match. It is designed for users to quickly join and be straight into action without the learning curve required of the main game, and as such CQC does not impact the normal Elite Dangerous universe apart from some small perks (e.g. earning credits & rank).

Players in-game will be able to earn additional equipment such as better weapons for use in CQC-only, but some small items might be transferable to the normal Elite Dangerous universe, such as unique ranks or decals. Credits earned in CQC can be transferred to your main commander.

Experience points are gained by playing matches, and you will increase in rank when you gain experience. High-rank does not indicate high-skill though, it merely indicates that you have played a lot. The game uses a hidden “BattleRanking” score to rate your skill and match you against other similarly skilled players.

From the forums https://forums.frontier.co.uk/showthread.php?t=183746

For matchmaking we use something we call a 'BattleRating' which is a number that dictates how good you are, it's calculated using an ELO ranking system. When you first start playing CQC we don't know how good you are, so everyone starts with the same number; it's only by playing that we work out how good you are. So while you may be put up against someone of rank 25 in your very first match, it's because they've played for a while and their BattleRating is similar to yours, therefore in our system you're a good match up. Of course by the time you reach rank 25 you may be much better than that other player making it a lot less likely for you to be matched against them.

In Elite Dangerous CQC you gain access to different ships and loadouts when you gain levels.

Each loadout can be modified by customising the different hard points, utility mounts, bulk heads, internal components and so on of your selected ship with different modules that are earned by gaining ranks.

Frontier Developments have said in https://forums.frontier.co.uk/showthread.php?t=183746 that the equipment that is unlocked is not “better” per se than anything else, you just get an opportunity to tailor your ship to your style:

We’ve also had players mentioning that the higher your rank, the better the equipment you unlock. You do unlock new equipment as you progress but the equipment you unlock is different equipment which allows you to tailor your ship to play to your style. Each new module and weapon has its positives and negatives, meaning that someone of Level 50 won't have better equipment to Level 1 players, but they will have a lot more choice of what to put on their ship.

CQC has also been referred to by the game's producers as “Close Quarter Championship” and “Close Quarter Combat Championship”.