Blockchain and Gaming: How it is Changing the Industry
The gaming industry has seen a massive increase in growth and innovation in recent years. New technologies, from mobile gaming to virtual realities to competitive esports, are changing how we play games. Blockchain is one technology that will continue to disrupt the gaming industry.
Blockchain, the distributed-ledger system that powers cryptocurrencies such as Bitcoin, offers transparent, decentralized and secure solutions that can empower developers and players. It has many applications in gaming, from managing virtual items to facilitating payment. Decentralization can reduce costs and increase trust while also facilitating payments.
Blockchain can revolutionize gaming in several key areas.
True Digital Asset Ownership
A significant advantage is the ability to prove the scarcity of virtual assets. Blockchain allows users more control over their digital assets instead of the game publisher having centralized control. Blockchain-based game assets can be verified as owners, just like Bitcoin or Ethereum.
Instead of these assets being stored on the server of a game developer, gamers can now own digital items such as rare characters, abilities or even entire games. The digital ownership is transparently recorded on an unalterable blockchain ledger. Items can be stored securely, have a provable scarcity and be traded on different marketplaces.
Decentralized Asset Exchange
Blockchain enables decentralized asset trading by enabling digital ownership. Peer-to-peer markets allow gamers to buy, sell or exchange in-game items without a trusted third party. A blockchain allows players to create ecosystems rather than relying on a game’s publisher.
The market for skins and other digital goods associated with popular games, such as CounterStrike Global Offensive, worth billions of dollars, has been increasing. Blockchain technology can bring transparency, autonomy and trust to digital gaming economies. Cross-chain protocols allow players to exchange assets across different games or metaverses easily.
In-Game Virtual Economies
Virtual economies in games are not a new concept. Due to their centralized nature, players still need to gain actual ownership of the items or currencies they earn. Blockchain allows for player-driven economies, where users can truly own and control the value they create.
The players can be rewarded for their time and effort in the games with digital assets that can have value on external markets. In decentralized blockchain gaming systems, players can play a more critical role in governance rather than spend their money in an opaque centralized store.
Crowdfunding & Transparent Payments
Blockchain also provides gaming with streamlined payment and crowdfunding channels. The blockchain-powered Nine Chronicles raised over $2 million by selling NNC Tokens to fund development. Early backers of the project were rewarded handsomely for their risky investment.
These token sales can help independent studios to raise money from their loyal player communities. Transparency in transactions and the distribution of tokens creates trust between contributors and creators. The traditional centralized payment system has issues such as delayed transfers, platform fees and third-party fees. Blockchain facilitates a direct and seamless transfer of value with minimal fees between parties using currencies such as Bitcoin and Ethereum.
Fraud Prevention
Online gaming is plagued by fraud and scams. Popular online and mobile gaming is plagued by cheating, hacking, and stolen accounts. Blockchain is more secure than other technologies because of its core tenants: hashing cryptography and consensus. Blockchain can safeguard virtual assets to prevent cheating and verify identity to reduce account theft.
Secure communication between the client and server is guaranteed when a game runs on blockchain. The P2P connection protects data because no central entity is storing all data. Decentralized nodes maintain a record of all actions and transactions, which is harder to hack or exploit.
Esports betting and competitive Esports
Blockchain will have a significant impact on the future of betting in esports. Morgan Stanley says esports will be a $100billion industry by 2022. Lack of oversight over betting has hindered the growth and adoption of esports.
Blockchain can introduce transparency and verifiable randomness for esports gambling. Smart contracts can be used to write betting mechanisms and payouts that players can review and audit in advance. Oracles can generate and integrate random values into intelligent contracts for fair, proven outcomes.
Blockchain also allows people to wager directly against one another rather than risk exposure to a betting firm, thus creating a level playing field. Integrating robust identity verification in the architecture will also help counter unfair activities such as age fraud, match-fixing collusion, or using multiple accounts for speculation. Blockchain solutions can be used to provide accountability for esports betting. Gambling regulations are still a significant obstacle, but they can also help regulate the industry.
The Revolution has Already Begun.
Blockchain is making rapid progress in the gaming industry, which has historically needed to be faster to adapt to innovations requiring radical changes. Multiple projects venture into blockchain gaming domains, raising millions of dollars in funding. Platform economies allow users to create games based on blockchains with relative ease. Retro games such as Pacman and Tetris are being reinvented to become decentralized applications that can be played on networks like Ethereum. The adoption of blockchain technology is already accelerating despite the need for more infrastructure and unresolved scaling bottlenecks.
The mainstream transformation of gaming is inevitable as blockchain platforms improve in terms of speed, user experience and capabilities – all while overcoming barriers such as volatile transaction costs. The value proposition of blockchain games will be too compelling for people to ignore. This is similar to startups such as Axie Infinity, which increased their numbers by rewarding their players with cryptocurrency. The blockchain’s decentralized ethos is a perfect fit for directly extending creative control and economic rewards to players. This will challenge decades-old walled garden publishers.
Blockchain promises to redefine gaming through its openness, transparency and democracy. Game makers can encourage participation by creating robust mini-economies that are fair to all users. We may see the resurgence of community-driven games where players have control and can even own them via governance tokens. Blockchain changes game architectures, players’ behaviour, and business models.
Hire Blockchain Experts
Software engineers are needed to bring the blockchain vision to life. The technical challenges of developing decentralized games that integrate cryptocurrency payments, securely process transactions, tokenize assets in-game and govern the virtual economy are steep. There are specialized teams of engineers who have experience in blockchain development.
Antier Solutions, a top US blockchain development company, has already powered many ambitious crypto projects across DeFis, NFTs wallets, exchanges, and apps. They have the knowledge and expertise to design highly secure, scalable and customizable decentralized gaming platforms. Full-stack developers can program smart contracts, oracles, and protocols tailored to game mechanics and economics models. Hiring Blockchain developers in USA to create blockchain games is the best option for any company or startup exploiting this booming industry.
Full-service blockchain developers have years of experience implementing gaming cryptos and advising on compliance, asset tokenization, community management, and ecosystem design. They are an excellent springboard for creating the next generation of blockchain games. Early movers are already releasing exciting, crypto-integrated games that captivate player interest and imagination. In the next few years, blockchain will radically change video games. It will give players back ownership and control of their gaming assets in a revolutionary way.
