Blockchain In Gaming: A New Frontier In The Billion Dollar Gaming Industry

Blockchain In Gaming: A New Frontier In The Billion Dollar Gaming Industry

Blockchain in gamingWith the global gaming industry estimated to hit revenue of USD 143 billion by 2020, you will agree with me that Blockchain in gaming is the knight in shining armor. Are you a gaming entrepreneur, game developer, or even a game lover? It is time for you to become aware of the gaming future that will be introduced by Blockchain technology. Now is not the time for you to look the other way, you must understand what the future holds for gaming.

Also Read: Binance adds a fiat-to-crypto gateway for Nigeria’s Naira

Over the years, there have been numerous changes to the way gaming is done. Since Mario’s video game debut in 1981, the art of gaming has gone through various upgrades and innovations. This is as a result of advancements in computer graphic technology. The introduction of Blockchain in gaming holds great promise for the growth of the gaming industry. It comes as no surprise that gamers were even the first to embrace Cryptocurrencies because they are already familiar with many in-game virtual currency models.

Although the potential and prospects of the introduction of Blockchain in gaming is enormous, there are certain hurdles that need to be overcome. We shall explore these hurdles in the course of this article. The purpose of this article is to enlighten you on the prospects and implications of Blockchain gaming technology. So, you sit back and relax as I take you through this journey in a fascinating and highly informative manner.

A Peek into What Blockchain Technology Really Is

Blockchain technology is undoubtedly the leading technological innovation in the world today. This disruptive technology owes this to the application of technology in virtually all aspects of human existence. Blockchain is the technology that makes decisions and stores data in “blocks” while being hosted on a distributed network of global computers. The consensus on the Blockchain platform is strictly based on the consensus of a cryptographic principle. For details on the Blockchain, you can check my previous article on Blockchain architecture explained in simple and clear terms.

What You Need To Know About the Gaming Industry

There are many characteristics and dynamics that you must always encounter in the gaming industry. You either come across them as a gaming entrepreneur, gaming developer or even as a gaming lover or enthusiast. Now, we shall be considering these characteristics and dynamics as they are peculiar to the gaming industry. With its features and dynamism, the gaming industry is fast growing. The gaming industry has also become the prime candidate for disruption. Some notable characteristic of the gaming industry that you need to be aware of include the following:

  • To play the popular games, you need money. Although some of the games allow players to accumulate digital gold, most players find it inconvenient because it takes time. There are people who spend their fiat money buying in-game assets.
  • A safe and secure environment is essential for game entrepreneurs and developers to develop and launch games and monetize them.
  • As a game player, you need to buy and sell in-game assets securely; hence, the need for safe platforms.
  • There are more people projecting value on intangible assets, thereby increasing the amount of real money spent on virtual games.
  • When a player is not playing an online game, he/she needs to store the virtual game securely, but currently, it is stored in the centralized server of the gaming company.
  • As a game player, you never really own any in-game assets; instead, the gaming company owns all of them. This presents an excellent opportunity for disruption.

The above-listed points and many more are the characteristics of the current gaming industry, in which the introduction of Blockchain technology can revolutionize.

The Use of Cryptocurrencies Can Make In-Game Purchases Much Easier

As a game developer, you can help players by enabling them to buy in-game assets using Cryptocurrencies. With Cryptocurrencies, game players won’t need third-party payment providers to process their fiat currency transactions. As a result, game players can purchase game collectibles in the blink of an eye without any delay. By using Cryptocurrencies, game players can save on the fees that third-payment providers charge. Many Blockchain startups are seizing this opportunity in the gaming industry.

For instance, Enjin Blockchain startup has introduced a framework for game developers that include the following:

  • Wallets
  • Game plugins
  • Software development kits (SDKs), and
  • Apps for virtual item management and payment gateway

Enjin has also developed an ERC-20 token called ENJIN Coin, which will support transactions on its platform.

Blockchain in Gaming Provides Safe and Secure Environment for Game Entrepreneurs and Developers 

When gaming entrepreneurs and developers integrate Blockchain technology, the security of their platforms becomes guaranteed to a very significant extent. Blockchain platforms make use of powerful encryption technologies to secure Crypto token transactions. Judging by the computing technologies we have today, it is highly improbable to hack data encryption techniques on the Blockchain.

Also related: The use of Blockchain in Point of Sales (PoS) business

Another advantage of employing Blockchain in gaming security is that hackers will not be able to destroy a decentralized Blockchain network. This is because there is no central server to attack. The nodes maintain the Blockchain databases in a shared manner, with every node having complete information on the database. Also, hackers cannot modify existing transactions because it is impossible to initiate a “Distributed Denial of Service (DDoS).” With the proof of work concept as well as other consensus algorithms, the Blockchain network remains immutable.

Blockchain in Gaming Allows Interoperable Profiles of Game Players

With the public address key, you can conduct transactions across different Blockchain networks. As a gaming entrepreneur or developer, when you create your games on the Blockchain network, your players can take their public address from one game to the other. These players can also carry out Cryptocurrency transactions using the same public address across those different games. By so doing, you are creating a platform that enables the interoperability of the profiles of game players.

Blockchain in Gaming Allows the Projection of Value on Intangible Assets

Axiom Zen launched CryptoKitties on 28th November 2017, and by 6th December of the same year, players had already spent USD 6.7 million on the game. This is proof that once you develop an exciting game on the Blockchain, players will be eager to project real value on intangible digital collectibles. The prerequisite here is that the game must be fun to play. Game players will be happy to spend provided you build an entertaining game with Blockchain.

Blockchain in Gaming Enables Players to Truly Own Their In-Game Assets

Unlike what is obtainable under the current gaming scenario where you don’t own your in-game purchases, Blockchain in gaming allows players to own their assets. With the use of smart contract feature to govern transactions inside the game, players can hold their in-game assets. These smart contracts are executed automatically, provided the conditions encoded on them are met. Once a Blockchain-powered game is launched, all the in-game assets bought by the players using smart contracts are transferred to their public addresses. The smart contract will also enable full transparency, and every player can see the rules of the game. All smart contract execution results are recorded on the decentralized Blockchain, and they remain immutable.

Blockchain Technology Enables Players to Collaborate With Game Developers 

Blockchain in gaming enables open communication between game players and developers to improve the game. This is made possible because of the community consensus model of Blockchain developments. A player or even another game developer can come up with a suggestion, and if the community agrees, the enhancement will be added to the system. This is unlike what the current gaming system is known for. An excellent example of the Blockchain community consensus mechanism is the case of the “Segregated Witness (SegWit)” implementation on the Bitcoin Blockchain. When Bitcoin was faced with the issue of scalability as a result of the POW consensus algorithm, Peter Wille came up with the SegWit idea. After the Bitcoin community vetted the idea, it was implemented, resulting in lower Bitcoin transaction fees.

Conclusion

There are lots of benefits that come with the integration and adoption of Blockchain in gaming. So, when next you are considering and planning to build the next viral game, also think about the advantages of Blockchain technology in the gaming industry.

I would love to get your take on this topic, so kindly make use of the comment box provided below.

 

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