|The business goal for creating this content:||Educate companies/ startups about the concept of blockchain technology & its significance in the gaming industry.|
|Target persona(s):||Technology professionals, Managers, and Company owners especially from the gaming industry.|
|Voice/tone:||Informative, and clear, they like lists.|
How is Blockchain Technology Transforming the Gaming Industry?
We have seen how Blockchain is exponentially gaining attention and has already started disrupting many industries with its spellbinding use cases.
By definition, a blockchain is a Distributed Ledger stored digitally and keeps track of all the transactions uniquely through a wide range of validation techniques, encryption, and security. These transactions can be any exchange of data through the blockchain network.
Blockchain technology is not just for security finances, but it has also started creating innovations in the Gaming Industry. How? Since blockchain will transform the way games are created, controlled, and experienced in the future.
Keep reading, and you will get to know all these exciting things shortly.
How Does Technology Blockchain Work in the Gaming Industry?
According to the annual report published by Blockchain Gaming Alliance, nonfungible token (NFT) games generated $2.32 billion in revenue in Q3 of 2021.
Additionally, the number of wallets related to gaming activity increased by 2,453%, from 29,563 in the first week of 2021 to 754,000 in the third quarter of 2021.
A blockchain is essentially a chain of data nodes on a network system that is transparent to all of its users and anyone else. This preserves a complete record of everything that transpired on the network relating to the data.
Hence, the game is decentralized, which means that there is no central authority controlling the game, but rather users who own and control the game assets.
Here, you hold a particular amount of digital assets called NFTs on a gaming blockchain, just like you own a certain quantity of crypto coins, such as Ethereum, Bitcoin, or Litecoin, on a cryptocurrency blockchain. The game objects are held in the same way as cryptocurrency, and you can transfer them to a wallet and outside of the game.
The Role of Non-Fungible Tokens (NFT)
Many blockchain-enabled games, known as decentralized applications (dApps), place a greater emphasis on earning value for participants. This novel mechanism is a paradigm shift, allowing players to understand better and appreciate the utility and worth of items obtained through in-game purchases, regular gaming, or promotional programs.
When a player buys an armor upgrade in a typical game, the only benefit is the improvement in gameplay in that specific game. However, in a gaming environment that uses cross-platform non-fungible tokens (NFTs), the same armor can be tokenized to turn in-game purchases into movable assets that you can exchange for money or other digital assets.
Isn’t it amusing for the gamers?
These NFTs can be generated and deployed in various gaming settings through underlying blockchain networks. Blockchain-based games can drastically expand gaming economies, establish new gaming categories, and fuel the development of new games because NFTs are unique and can be engineered to sustain value far beyond the play in which they originated.
To comprehend that, first, we’ll need to understand the critical characteristics of NFTs in the first place.
The blockchain gaming business isn’t the only one that uses non-fungible tokens. These tokens can represent digital and physical assets, such as real estate, artwork, collectibles, and even personal identity.
As a result, NFTs offer various applications that appeal to multiple sectors and use cases, and their acceptance is rising. NFTs have three distinctive properties that set them apart from most other digital tokens:
Each NFT is a crypto token that signifies anything unique or non-fungible, which means you cannot exchange it for another NFT. On the blockchain, the metadata contained within each NFT exists as an everlasting, unchangeable record.
Each NFT’s scarcity is an essential factor that makes them valuable. For instance, In the CryptoKitties game, players gather and breed digital cats, each represented by a unique NFT.
Some CryptoKitties are rare collectibles, which drives up their price amongst collectors who admire their proven rarity. Dragon, a CryptoKitty, was sold for 600 ETH in 2018, worth $170K.
Considering its mutability and its use as a means of exchange, cryptocurrencies such as bitcoin can be divided into smaller pieces. Most NFTs, on the other hand, must be purchased, sold, and held as an entire unit and are thus inseparable — just as you can’t buy 10% of a musical ticket or 60% of a flight ticket.
Impact of Blockchain Technology on the Gaming Sector
According to experts, adopting blockchain in gaming is a piece of cake due to its scalability and the notion that gamers are accustomed to tokenisation.
Secondly, because many games allow users to purchase in-game things with physical and virtual money, experts agree that blockchain is the best way to keep track of these transactions.
1. Increases the Security of the Gaming Market
Due to the decentralising nature of blockchain and its very effective data encryption capabilities, hackers will find it extremely hard to gain access to any data on the servers.
It results in greater production by providing a safe environment for game developers. Hackers will not be able to bring down a decentralized blockchain network since there are no servers to attack.
2. Enhance Value Projection of Intangible Assets
Players had invested around $6.7 million by December 6th after Crypto Kitties was introduced on November 28th, 2017. According to these statistics, gamers will value intangible digital collectables when a fun game is established on the blockchain.
If you create an engaging blockchain game, players will be eager to pay real money for intangible digital valuables. The combo of cryptocurrency and exciting video games will undoubtedly lead to a surge in investment.
3. Control Over Specific Games
The blockchain-based gaming networks are immutable. This ensures that network-deployed gaming initiatives and series will remain unchanged. This allows users to download and install different versions of video games from any location without compromising their gaming experience.
4. Better Payment Methods
Cryptocurrencies are highly safe and anonymous. Multiple examples of large gambling networks being breached have already unfolded, with users’ credit card information leaked online and sold on illegal markets.
Local cryptocurrency tokens or other equivalent tokens are utilised to make payments in blockchain gaming applications, resulting in an improved transaction experience. In this sense, combining cryptocurrencies with video games can increase payment options for gamers.
Twitch and Steam are two of the most well-known names in gaming, and the news that they’re exploring crypto enhanced payments could imply that mixing cryptocurrencies with traditional payment methods has a future.
5. Providing Ownership of In-Game Assets
Blockchain technology can help with in-game asset ownership by bringing greater visibility and regulation to the gaming industry. One of the essential aspects of blockchain-supported gaming is an actual digital proprietorship, which will allow players to trade unique items and profits.
Smart contracts are used to manage all transactions in a blockchain-based game. Smart contracts are irreversible and run on pre-programmed parameters. As a result, once you launch blockchain-based gaming, all in-game items acquired with smart contracts are moved to participants’ public address accounts as soon as possible.
Apart from that, smart contracts are run without the need for a central authority. No one can modify the public address in which the in-game assets are kept, and no one can change the private ownership of those assets. They will stay under the ownership of whoever owns them in the game.
6. Integrated Gaming Profile
Before accessing the platform’s games and other services, most gaming platforms need users to make a gaming profile. On the other hand, users of blockchain gaming apps can construct a single, consolidated gaming profile which can be viewed and used across several gaming sites.
By making interconnected activities in programmes more accessible, this strategy improves the user experience for gamers.
7. Allows Buying and Selling In-Game Assets
As crypto grows in popularity, buying and selling crypto assets has become more convenient. Your players will have a secure way to trade in-game assets if you build your game on the blockchain and allow them to use digital currency.
MyEtherWallet, for example, is a great web wallet for gamers. If they are not actively using their digital currency, they can keep it safe with hardware wallets like the Ledger Nano S.
Players’ transactions are safe if they keep track of their private keys. They must, however, maintain a diligent commitment to computer security, such as regularly backing up their data, avoiding hazardous websites, and not having too many bitcoins in mobile and web wallets.
8. Opens New Opportunities & Options for Gaming Developers
Assume you are a talented developer, and you have a fantastic idea for a game app and aren’t used to working in the gaming industry. Experience is extremely valuable to centralised gaming companies because they operate in a highly competitive market. You’ll have to wait a bit before landing that dream job at a game studio.
There are good resources for learning how to create a DApp game. The Loom Network, for example, has created an interactive tutorial to help you make your own DApp game. Their CryptoZombies coding school is worth checking out.
You can construct your game using Loom Network’s Unity SDK. Visit get started, and go to the Unity SDK documentation on GitHub.
9. Establishes a Better Connection Between Developers and Players
The gaming industry is transforming due to blockchain technology enabling open communication between game players and developers. The development of blockchain apps is feasible because they are driven by community consensus rather than top-down.
A player or a developer may well have a brilliant idea for improving a game. The improvements will be made if the community agrees.
To illustrate these dynamics of the blockchain ecosystem, let’s take the example of Segregated Witness in Bitcoin (SegWit). During Bitcoin’s POW consensus algorithm’s scalability problems, a developer named Peter Wiulle suggested the SegWit idea. The Bitcoin community supported the idea, which resulted in lower transaction fees.
10. Detects & Prevents Fraud
‘Smart contracts built on top of blockchain networks contain faults, making them insecure. Hackers can exploit these flaws; the Ethereum DAO attack in 2016 was a perfect example.
An attack on Ethereum DAO exploited a weakness in the ‘Decentralized Autonomous Organization’ (DAO). They didn’t make off with the ETH 3.6 million ($ 70 million at the time) due to blockchain transparency.
The Ethereum community quickly detected the breach because a blockchain network allows anybody to examine all transactions. To avoid the drain of cash, they created a hard fork and restored the funds to DAO investors.
Be sure that your smart contracts are correctly coded if you create a blockchain game. However, the public record of all transactions is another benefit of the blockchain.
Time to Explore the Gaming Through Blockchains
Blockchain gaming is a significant departure from traditional gaming. Gamers can now be assured that their digital assets will not be removed but kept for the rest of their lives and reused in other games. They can also profit from trading them on the open market.
Traditional gaming is poised to undergo a significant transformation, and it may occur sooner than we think…
Jason is a content marketing specialist who is currently working with Parangat Technologies. He likes researching topics related to Blockchain and Crypto. During weekends, he likes spending time watching YouTube.
Last modified on June 28th, 2023 at 2:49 pm