Historically, innovation has affected the supply chain industry in significant ways. For example, in 1980, the introduction ...
The gaming industry has been on a continual uphill ride for some time now, and it shows no signs of stopping anytime soon. So much so that it is estimated to grow by $125.65 Billion by 2026. According to Technavio, a big part of this tremendous rise in the market is driven by Blockchain. This almost makes one want to look further into blockchain app development and its potential!
But how is something like Blockchain related to Gaming? How does one benefit the other and is it really a good match? Let’s find out!
You’re a long way from home if you don’t know what Blockchain is, but we’ll give you the benefit of doubt and assume you’re all about learning. Ever heard of Bitcoin or NFTs? Well, then you might be onto something.
Simply put, Blockchain is a distributed digital ledger that maintains & stores data while being Decentralized or not functioning under a single authority in simpler terms. Its purpose is to provide a safe and unhackable platform for people to indulge in safe transactions.
Remember Bitcoin? Yeah, Bitcoin, Ethereum, and DogeCoin are some examples of cryptocurrencies that can be exchanged on the blockchain. Initially, people thought that’s all Blockchain did, but now, we’re discovering the massive potential such a platform could have and the numerous ways it could be used in!
Yes, you heard that right. As serious and hoity-toity Blockchain sounds, it can be difficult to associate it with something as fun and frill as Gaming. But here’s the thing right, Blockchain is a technology, and what is the one unavoidable pillar of virtual gaming? Technology! That’s how these two complement each other.
Go on, tell me more!
Well, basically with Blockchain, online gaming gains a new dimension wherein players and businesses can both benefit from the in-game transactions made in cryptocurrencies.
This sounds Interesting, is there more to it?
Why, yes! We’re Glad you asked.
Cryptocurrencies’ Part To Play
Players can now use their crypto coins or NFTs to purchase in-game commodities like avatars, weapons, accessories, Player cards, subscriptions, memberships, season passes, etc. And also win such cryptocurrencies while playing.
Not only does this enable the users to gain assets exchangeable for real-world money, but also facilitates a safe, secure transaction feasible for both the parties involved. And of course, many blockchain consultants will stress on the complete elimination of dependency on credit card agencies, or banks is an added bonus saving time and money!
As most of you know, NFTs are Non-fungible Tokens that are unique to an individual and work as sort of a verification certificate authenticating their claim to a virtual entity.
NFTs provide the players with more authority over their digital assets and enable them to “own” them in a truer sense, and therefore, use them in transactions more liberally without the interference of any other party.
With respect to Gaming, (Blockchain gaming in particular), Players can use or trade NFTs to buy/exchange characters, memes, passes, videos, and many such digital assets.
Crypto Games & Events
Apart from winning and playing with cryptocurrencies that can have real-life money value for the players, Blockchain technology can be used to ameliorate the quality and functioning of virtual tournaments or gaming events.
Oftentimes, these events can be cumbersome to manage as there can be many obstacles like extensive and expensive registration, cybersecurity, proper recordkeeping and management of teams, awards won, assets granted, and so on. All these troubles can be resolved with Blockchain.
Being a thorough, decentralized platform, it can prove to be exceptionally useful in verifying and tracking all records and instances in the above-mentioned games or tournaments. Thereby allowing the players to engage in transparent and secure gaming transactions.
Blockchain’s Impact on Gaming
Now that we know Blockchain has practical implications in gaming and can be used in a newer variety of Games, Let’s find out how it can impact the Gaming industry as a whole, and what will its contributions be to the future of the Gaming Industry.
There’s a whole array of benefits Blockchain can dispense, some of the most prominent ones are as follows:
Enhanced User Experience
As far as gaming is concerned, Blockchain provides businesses and gamers a more efficient, secure & transparent way to engage in digital transactions and access virtual assets, thereby improving the overall user experience.
With Blockchain gaming, the control users can have over their gaming experience is second to none. Not just that, Blockchain also empowers players to create customized characters and storylines based on their interests & preferences.
Another distinct feature of Blockchain in gaming is that it allows players to earn rewards or Crypto tokens while playing their favorite games, which can be utilized outside the game in “the real world”. In simpler terms, the rewards won can be redeemed for real-world goods and services.
Talking about how to win rewards, players can simply do so by completing quests and missions in their preferred game.
Unlike traditional game rewards that have no monetary value outside the game, i.e. in the real world, Blockchain-based game rewards can be used as real money to purchase items from other players outside the game or to even buy products on any e-commerce website.
More Transactions, Fewer Costs
Keeping in view the secure, transparent, and tamper-proof nature of the Blockchain platform, the games associated with this robust technology provides safe transactions between users, keeping away the odds of double-spending or any sort of transaction fraud.
This allows players to effectively engage in various virtual events & tournaments and carry out multiple transactions without worrying about any sort of fraud or wrongdoing.
Moreover, the transaction cost is less in case of Blockchain, making it easier for users to transfer money or any other tokenized asset to anyone across the world.
Integrated Gaming Profiles
Because of the growing popularity of Blockchain gaming, it’s viable to build a centralized community where users from different geographical locations can access different games.
Also, it allows users to build a single profile that they can use across multiple platforms, which results in an enhanced user experience and makes it convenient for users to access different games and purchase items.
Hi-Tech Security provisions
Blockchain technology provides an additional level of security to users with its exceptional built-in encryption methods such as Secure Messaging and Two-Factor Authentication.
This helps in safeguarding sensitive information of gamers which basically includes player information, game data, etc., and prevents user transactions from being hacked or tampered with in any way possible.
Another stand-out feature of a Blockchain gaming platform is that it helps prevent fraud by ensuring that every transaction & interaction between various parties is verified & legitimate.
And since each transaction is recorded on the distributed ledger, it guarantees that no user or entity has been paid twice for the same service or goods rendered.
Another key highlight of Blockchain gaming is that it allows players to trade their belongings for cash/profits or other resources. Added to that, it also empowers players to sell or buy in-game assets from other players.
And since the record of each item and its ownership is stored on the tamper-proof digital ledger, players can confidently play and do trading, knowing that their resources/entities will not be stolen or duplicated in any possible way.
Seamless, Secure & Transparent Transactions
With Blockchain, there’s no room for any sort of transaction fraud. All thanks to the secure, transparent, and unchangeable nature of Blockchain technology.
It also provides users with an extra level of security, especially while carrying out digital transactions, which makes it suitable for games in which players share sensitive information such as bank details, phone numbers, credit/debit card numbers, etc., or virtual assets like NFTs.
Although Blockchain has taken the gaming world by storm ever since its introduction, there have also been certain limitations associated with it. Below are the most common ones.
Unlike traditional games that just require a device & internet to get started, crypto-powered games require a Crypto Wallet, some cryptocurrency, and an account with an exchange where crypto will be traded. The process is quite complex and challenging, which is a major downside of crypto-based gaming.
Without a doubt, the gaming arena is highly competitive, with a constant stream of new games & platforms being introduced on a regular basis. This makes it extremely difficult for Blockchain-powered games to compete against their fellow traditional rivals, keeping in view the complex nature of Crypto games which is a major turnoff for them.
Since Crypto and Gaming is a new combination yet to be practically proven, it will be challenging for the regulatory bodies to figure out how cryptocurrencies such as MANA, Theta, etc. will function in the case of Blockchain gaming.
Scalability issues will also play a big part in Blockchain-based gaming, certainly because of its decentralized nature. This is not the case with Traditional gaming as it is centralized and much faster compared to its Blockchain counterparts.
The demand for Blockchain-powered games is considerably lower than their traditional rivals, probably because of major scalability issues faced by developers.
Developers and game owners often tend to struggle to raise funds when it comes to maintaining a Crypto-based game, which is not the case with traditional gaming.
Over the past few years, hundreds of Blockchain-powered games have been introduced to the market. Some of the most popular ones are mentioned below.
Introduced to the world back in November 2017, CryptoKitties is one of the first Blockchain-based games to be developed. The storyline of the game revolves around breeding a new generation of kittens with distinct characteristics so as to increase their value.
Another renowned Blockchain-integrated virtual reality platform that creates a decentralized virtual environment with the help of Blockchain technology.
Leveraging this platform, users can create, experience, and effectively monetize content and applications.
Thanks to the VR integration, users can physically move around the Decentraland’s virtual gaming area, examine, and acquire various properties owned by other users.
Gods Unchained is a Blockchain-powered collectible card game built on the Ethereum platform that tracks card ownership of users.
The cards involved in the game are termed as, “digital assets”, which cannot be copied or altered/modified without the permission of the owner, all thanks to the tamper-proof nature of Blockchain technology. And that’s what makes these cards one-of-a-kind and so precious.
Another renowned Blockchain-integrated platform that has been the talk of the town ever since its release is FIFAcoins4sale.
Talking about this platform, it’s an online decentralized marketplace where players from different geographical locations can purchase or sell in-game FIFA currencies without any fear of scam or fraud.
Blockchain in Gaming: The Future?
To sum up, with countless Blockchain-powered games coming up with each passing day, there’s no denying that Blockchain does have a promising future in the gaming industry. And in the coming time, we shall surely see more Blockchain-based games and platforms being released very often.
According to a recently conducted survey by Accenture, 84 percent of gamers believe that video games help them connect with others with similar interests, while 80 percent believe that video games help them meet new people every now and then. Below is the pictorial view depicting the statistics in detail.
All in all, the coming together of blockchain and gaming is inevitable, and the impact of this evolution is already being felt in the entire gaming industry.
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