The majority of people are familiar with blockchain technology because of the cryptocurrency industry. Since Bitcoin was the first significant cryptocurrency to enter the public, dozens of alternative currencies leveraging blockchain technology are now operational. The gaming industry was an early adopter of cryptocurrency, using it to provide benefits such as a 500% casino bonus. Blockchain technology is a ground-breaking new system that is decentralized and very difficult to hack and has given rise to an entire online economy. It’s a game-changer with a ton of useful new uses. We’ll focus on just one of them, specifically how blockchain technology functions in the gaming sector and what the future holds for it.
#1. Actual possession of In-Game assets
The ownership of in-game assets is one of the most intriguing applications of blockchain technology in the gaming industry. Currently, it’s practically impossible for a player to fully control everything in a game. There will always be a divide between what you have in the game and what still belongs to the corporation that made it since developers have never felt the need to transfer ownership to players. The benefits of blockchain technology might alter that. Blockchain technology can decentralize ownership of in-game assets in the same manner that it liberates control of currency from banks and governments. This may impact the gaming business in a variety of ways. Blockchain technology might have a big influence on the world of e-sports and competitive gaming. For instance, a player who wins a tournament with updated and customized weaponry may give those weapons to someone else as a gift or for a fee. A wide variety of digital items are available in many online games, but they either need to be bought or acquired via countless hours of play. Using blockchain technology, these assets could be used to create a virtual economy, which would let players trade freely without the game’s creators getting in the way.
#2. The Blockchain idea
For a better understanding of what this technology entails, it may be said that blockchains can be created either publicly or privately. For instance, the digital currencies Bitcoin and Ethereum are built on the public blockchain. A chain of blocks is comparable to a portable book of accounts. It is impossible to forge since you have to alter a transaction for everyone if you wish to change it.
As a result, it is a huge database that is shared among many users and serves as a logbook for all the transactions made by the nodes, which are then allocated to the many computers that are a part of the system. Every time a message is created through the node and the blocks that make up its chain, it is sent encrypted so that both its content and sender are kept private in this P2P (peer-to-peer) network that forms the blocks mentioned above.
#3. How does blockchain gaming work
With blockchain at its side, the gaming sector will undoubtedly see disruption. The three billion gamers worldwide are ready to benefit more from this technology that is capable of alleviating numerous pain points, from ownership to royalties, from discovering uncommon stuff to collecting trinkets. So what is gaming on the blockchain?
Blockchain technology is used in blockchain gaming to ensure that everyone, not just one entity, owns a copy of what they are playing. To do this, we will require a smart contract, which controls how things are done on the blockchain. Blockchain gaming creates actual item ownership using the same technology as cryptocurrencies like Bitcoin and Ethereum. Gamers who frequently become entangled with in-game creatures view it as a blessing.
#4. Real purchases using virtual currency
When we consider the role that cryptocurrencies will soon play in the real world, these hypothetical blockchain-based game economies have even more promise. A variety of cryptocurrencies are now accepted by an increasing number of online services. Due to its reliance on blockchain technology, cryptocurrency is completely decentralized and makes an excellent framework for online game economies. This suggests, for instance, that programmers may provide cryptocurrency as a prize for performing well in a game or winning a contest. This effectively implies that a player may use the money made from online gaming to pay for things like groceries or taxi rides. Although unusual, the scenario is undoubtedly conceivable. Even though developers haven’t done much with this blockchain technology idea yet, it is definitely possible.
#5. The Future of Gaming, Interoperability, and Blockchain Technology
Interoperability is one way that blockchain technology may have an influence on a game’s real mechanics. This idea focuses on tying up profiles across many games such that events in one game might affect those in another. For instance, a scenario where a player dies in one game and returns as a zombie in another may occur. Although it may not seem like much, this opens up a lot of possibilities for game creation in the future. Blockchain technology has the potential to link a player’s profile across several games, resulting in an entirely new gaming experience that hasn’t been seen before.
#6. Security, decentralization, and transparency are just a few of the benefits the sector has
The entertainment industry, especially the gaming industry, is one of the first businesses to experience this new type of payment since blockchain technology is revolutionizing a number of industries. The advantages that may be attained using blockchain technology, also known as the blockchain, are starting to dawn on the gaming sector. One of its benefits is that it makes sure payments are faster, safer, and clear (because governments and public institutions don’t get involved). This lets gamers and game producers make the most of digital games that can be bought and used on many different gaming platforms. Another benefit of cryptocurrencies is their decentralization, which prevents third parties from interfering with or obstructing transactions. So much so that many gaming websites, such as Betway Casino, Steam Games, G2A, or PlayAsia Online, not only accept payments via PayPal, VISA, American Express, and Neteller but also allow customers in some of the countries where they operate to pay using cryptocurrencies such as Bitcoin or Ethereum. There is no question that these gaming platforms can expand into new markets if they include every nation where they are present since more gamers will have the chance to access new games globally. In other words, blockchain technology will make it possible for people to buy digital goods; make digital currency transactions more transparent; and provide a more direct and secure connection between users and developers all over the world.
#7. Some drawbacks that this technology can pose
This kind of technology has drawn criticism since it needs a lot of technical resources, such as a powerful CPU and graphics card, to build the chain of blocks, which in turn requires mining Bitcoin money. This digital currency needs groups of “miners” to sustain themselves and thereby create digital money that is put into circulation without the control of any public entity. This cryptocurrency is created publicly by the cooperation of various “miners” who help generate blocks and, with them, increase the number of Bitcoin coins.
At the moment, the video game industry offers a very interesting way to make money that can only be done with blockchain technology.
The players put forth a lot of effort to win the prizes (weapons, powers, characters, clothing, etc.). But what happens once they’re all accomplished? Most of the time, the player stops being interested in the game.
What exactly would the blockchain change? Regardless of the platform to which they belong, this technology would establish a market for purchasing and selling these resources. Security, a factor that is important to the entire transformation, is also one of the key advantages of using the blockchain.
Today, sites like Reddit are utilized for this kind of market, but they do not provide assurances that the trade of items will be 100 percent secure.
In 2014, Gameflip was founded with this idea in mind, attempting to fill a market gap that had not yet been explored. This website exchanges digital assets using the Ethereum blockchain.
#8. Video games are released directly
Another of the game industry’s most lauded projects has been the development of blockchain-based platforms that link creators and users. So, the people working on making a video game can talk to each other directly.
This is the situation with the Game Chain System project, or GCS, as it is more often called. There are currently 20 million users registered on the platform. Its fundamental goal is to provide a user-to-user communication environment free from outside interference.
But this platform also has a fantastic project in the works. In the short to medium term, they plan to add a crowdfunding section to their website, where the people who made the project can try to get money to start making it.
Although it may seem impossible that all these advancements would ever be made to the degree that is anticipated, given how quickly technology is developing, it is likely that within a concise period of time, video gamers may witness their commercialisation.
The development of blockchain technology is still extremely young. Having said that, its enormous potential is already being tapped. The cryptocurrency was a pioneer in implementing blockchain technology, and it appears that it will soon transform the game. This discovery has the potential to transform the video game industry if game creators begin exploring its possibilities and discovering new uses for it. It won’t be long until we fully grasp the benefits of blockchain technology and all the different industries it may be used for.
What role does blockchain play in gaming?
Blockchain in gaming offers player profiles that are interoperable: The public address is available to cryptocurrency traders and investors, who may use it to conduct transactions on various blockchain networks. Your players may transfer their specific public addresses from one game to the next if you build your games on the blockchain.
How large is the blockchain gaming market?
According to the research, $2.5 billion was invested in the blockchain gaming field in the most recent quarter. In 2021, the industry as a whole will raise $4 billion, which shows that a lot more money is coming into this market.