Can blockchain technology give the gaming industry a decentralized leg up?
Keep in mind that the gaming industry has been a fast-growing sector, ever since ‘pong’ hit the TV screens. It’s incredible how that inauspicious start gave rise to a market, which was valued at around $138 billion in 2018. From a humble beginning with pixel ball and two paddles, is blockchain the next revolution in the gaming industry?
The state of the gaming industry and blockchain
Is the gaming industry ripe for blockchain-powered change? That’s the multibillion-dollar question today. Here’s the thing; blockchain technology was invented long before Bitcoin burst into the scene. But it wasn’t until it was used to record and store transactions for digital currencies that other applications of the technology were realized. Key among them are transparency and decentralization. According to the experts, these are the key ingredients that make a case for change in the gaming industry powered by technology.
It comes as no surprise that there’s talk about blockchain disrupting the gaming industry. Over the years, the gaming market has gone through remarkable change because of technological advances. Artificial Intelligence (AI), Virtual Reality (VR), Augmented Reality (AR), and now blockchain. Blockchain disruption will cause an impact, which will not only be felt in the way gamers and developers interact but also access to games and digital assets attached to them. Let’s find out what blockchain will do.
Blockchain games had somewhat of a ‘pong’ moment in 2014 when HunterCoin and CryptoKitties launched. The main component of blockchain which fueled its popularity is its immutable ledger properties. In a nutshell, the immutable ledger meant that players couldn’t alter the game’s data. And from this, a layer of trust was established between the developers and the player. Now check this out: this launch caused enough excitement almost to bring Ethereum, the second-largest blockchain by market cap.
Blockchain provides a secure environment for developers and entrepreneurs
The gaming industry has always been alluring to many entrepreneurs. So, when Initial Coin Offerings became popular, gaming developers took advantage to launch decentralized applications for gaming on blockchain. These blockchain platforms employ potent data encryption technology, which makes it impossible for hackers to destroy the networks. Therefore, gaming developers will have a highly secure environment to develop games on the blockchains. Also, gamers can play slots, action-adventure games, and more on blockchain platforms.
Blockchain provides a secure marketplace to buy and sell in-game assets
Aside from the emergence of new gaming franchises and the best online casinos today, gamers can look forward to using blockchain to manage digital assets for their favorite games. If a game allows players to buy and sell in-game assets using digital currencies, blockchain provides sufficient security to do such transactions. Technologies such as the private key-public key secure crypto-asset transactions. Players can also buy and sell the in-game asset in a secure eCommerce marketplace.
Blockchain can facilitate the creation of interoperable profiles for gamers
At the moment, the blockchain gaming arena is growing at an exceptional rate. This market is emerging in ways that could boost, or even stake claim to this expanding industry. Currently, cryptocurrency traders and investors, have a public address, which they use when they want to make cross-platform transactions on the blockchain. Similarly, when a developer creates a game, the players can take a unique public address from one game to the next. So a player playing online casino Ireland, for example, can use the same public address to transact with a different game.
Blockchain will enable projection of value to intangible assets
Now, this is where blockchain will change the rule of gaming. When Cryptokitties launched on 28th November 2017, players spent approximately $6.7 million by 6th December. These figures show that once an exciting game is built on the blockchain, players will provide value on the intangible digital collectibles. So, create a fun game and blockchain will allow players to spend cryptocurrencies on it.
Blockchain will facilitate storing of in-game assets
It’s a well-known fact that hackers love to mess with centralized servers. Why not? Break into the encryption of one stationary target, and you can have all the assets stored into it. Blockchain technology can change this for the gaming industry. There are several crypto wallets that can also provide storage for in-game assets. Players can store their assets in these crypto wallets, alongside their digital currencies like Bitcoin.
Blockchain games will allow players to have control and ownership of their in-game assets
Players don’t own the in-game assets they purchase in games today. A good thing that could come out of blockchain gaming is actual ownership of these assets. Blockchain-based games will use smart contacts, which will govern how transactions are conducted in a game. Smart contracts will automatically execute once all conditions are fulfilled. The result is irreversible. Besides, smart contracts will facilitate full transparency, which will allow all players to view the rules coded into them.
Like any other blockchain solution, the gaming application of the technology has to be examined based on its merits. Blockchain is a potential tool to facilitate decentralized asset exchange, provide high-grade security, the creation of interoperable profiles for players, value projection, and more.
But, there are challenges ahead, which developers have to tackle before blockchain gaming systems can be rolled out. Still, there are benefits to gaming on blockchain.
See more articles about blockchain here.
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