It’s no secret that the gaming industry, like many others, has various problems, and blockchain technology can offer a solution. The gaming industry has evolved in the past few decades with in-game purchases and digital assets taking center stage. Learn how blockchain can promote accountability and security to developers and gamers.
Gaming industry trends have, in leaps and bounds, evolved from their humble beginnings. Today, we see the gaming industry business become more riveting, engaging, with virtual reality games growing more popular each passing day.
With titles such as the Book of Ra, among others, the gaming experience has become far more rewarding for gamers and developers alike.
This article will explore how blockchain technology is being used to overcome the hurdles in the gaming industry. Let’s get started.
Table of Contents
The Gaming Industry
This is how gaming industry works. A majority of online gaming industry companies use a centralized model.
That means all data is kept on a server fully controlled by the administrators of the game. Usually, the stored data contains server history and account information, including all the in-app assets collected by gamers, such as virtual money and collectibles.
Since the database belongs to a gaming company, players don’t really own their accounts and assets. As such, centralized servers are vulnerable to:
- Lack of transparency
- Technical issues leading to server malfunction
- Unfair ban of accounts
- Game shut down
- Game economy manipulation by administrators and developers
The good news is, blockchain can mitigate most, if not all, these problems.
The Gaming Industry and Blockchain Technology
Blockchain can simply be defined as a public distributed ledger that offers transparency and security. Although it is primarily used in cryptocurrency, blockchain has proven beneficial to other industries, including gaming.
From PC and mobile gaming to virtual reality and motion-based play, it keeps expanding and is believed to surpass the $180 billion mark by 2021. Here’s how the sector is benefiting from blockchain tech.
There’s no denying that the gaming industry is thriving, accompanied by safety issues such as account takeovers and fake sites.
Blockchain offers a safe experience for developers and gamers. It’s almost impossible to hack blockchain technology, allowing it to maintain high-security levels.
In addition, blockchain is decentralized. As such, gamers and developers cannot change data, which means transparency, trust, and increased customer loyalty.
Gaming companies have adopted blockchain technologies to enable in-game assets ownership by players. Collectible weapons, mods, and outfits usually gain real-world value.
Given that transactions can be traced transparently through a decentralized ledger thanks to blockchain, certain in-game assets can actually be owned by gamers, just as real-world artifacts could be.
Blockchain gaming works the same way as cryptocurrency trading, allowing gamers to control their financial and personal data, which is crucial. Users who previously had trust issues are now more willing to try out gaming thanks to increased transparency and safety offered by blockchain.
Some MMO games have introduced blockchain-powered currencies to gamers as a genuine in-game currency to pay other players for services rendered, upgrade weapons and houses, and more. Companies such as GameCredits are using the Ethereum blockchain where players can securely buy in-app content with GAME currency.
Real-Money Cryptocurrency Games
Blockchain technology is being utilized to enable players to use cryptocurrency to gamble and, possibly, win crypto jackpots. This is already a reality in online casinos.
For instance, playing with bitcoin and other popular cryptocurrencies means that it’s no longer necessary for players to divulge their credit card details to online casinos, enhancing discretion and security.
It also gives them the opportunity to reap from the volatile nature of cryptos such as bitcoin. For example, if bitcoin’s value were to fall, the real-money cost of playing would decrease. And if the value of bitcoin increases, the amount players could potentially win from an online casino will, in turn, raise.
Digital Asset Transactions
Many gaming companies still depend on third-party platforms such as GOG to process gaming industry money. The downside is, these platforms take time before processing transactions, sometimes up to two months or more.
This presents cash flow challenges for the gaming companies and turns off gamers who would want to use the assets they’ve won in the real world.
Blockchain does away with the need to rely on middlemen to manage transactions. By using crypto, players get their rewards virtually, almost immediately.
The Bottom Line
Blockchain technology has been a boon to different fields that did not have accountability, including gaming.
The gaming industry is growing, and with it comes a set of challenges blockchain can solve. Basically, blockchain offers a decentralized, transparent ledger, meaning no single entity can control the network, no possibility of reversing transactions once made, and no database to hack.
Besides, the low transaction costs make it so much easier to transfer money and other tokenized assets. Additionally, there are no middlemen involved, cutting down the time it takes to complete transactions.
At the end of the day, the gaming industry future will undoubtedly heavily depend on blockchain technology. Please share with us your experience with blockchain gaming.
Alex Norwood is an experienced traveler and an online entrepreneur. He is very interested in technology and tries to implement it in his life. He runs a successful eCommerce business and is always on the lookout for new lucrative ways to make money online.