Yes, yes it is possible and I'd love to see more people do stuff like this!
In the beginning, you could use items in the player inventory, but this doesn't work beyond the level of the individual player.
What you can do more recently is to give items either to a group of players (and assign players to a group) or to give items to the world. This is more like what you describe.
I wrote about world items here:
And there's some documentation here: