Blockchain started in 2008, around the same time as Bitcoin’s debut. It was (and still is) a decentralized public ledger used for recording bitcoin transactions. The transactions are done chronologically and then recorded in a secure and immutable way. As each block completes storing data, new blocks are then generated, with each block containing the following linked block’s address.
Blockchains are the foundation of many cryptocurrencies. However, due to its technology, other sectors have figured out blockchains can be extremely useful. As one of those technologies considered “disruptive,” blockchain is seen by many as an excellent match with the gaming industry.
How? Read on.
Blockchain redefines the gaming industry
Those in the know claim that applying blockchain in gaming would be a simple affair. Blockchain’s versatility certainly supports this view, and besides, gamers, especially online gamers, are already used to tokenization. Moreover, many of today’s games allow users to purchase items in-game using real or virtual money.
This option of buying and selling in-game is one of the areas where blockchain would earn its keep. And although the partnership wasn’t an overnight success when it first started in 2017, blockchain games generated around USD$2.5 billion in trading volume in 2022. The partnership has shown promise.
Blockchain gaming hasn’t reached mainstream level yet. However, the number of blockchain games is increasing, especially with many partnerships between game brands and financial institutions happening in recent years, like The Sandbox partnership with HSBC.
With the technology that blockchain brings to the table, the gaming industry is being redefined through the following:
- Increased security
One of the blockchain’s strengths is its no-nonsense data encryption, which can present an almost insurmountable stumbling block for hackers. Decentralization, another trait for which blockchain is known, adds another layer of protection for players. Cybercriminals wouldn’t be able to hack into a server because there wouldn’t be a central server. It’s all decentralized.
These traits can provide a secure environment for developers and entrepreneurs. Having a secure place means people work at an optimum level.
- In-game assets
Before blockchain, publishers and game developers are the actual owners of in-game assets. For example, if you bought a magical sword in-game worth USD$80 using fiat money or cryptocurrency, the sword isn’t actually yours. What you paid for is the right to use it in the game. You’re just renting it, basically. It’s the same when you sell it—you’re selling the right to use the sword to another gamer.
But with blockchain technology, the ownership of the in-game item passes to you, not to the developers or publishers. Remember, with no central servers, transactions are decentralized. Digital ownership is in the players’ hands, so they gain profit when they sell or trade those assets.
In addition, buying and selling crypto tokens are more secure with blockchain. As long as the players ensure their hardware is safe, their online transactions are safe. Decentralization also means your in-game assets are in a safe location. No centralized body can change or modify them.
- Improved pricing of in-game assets
In-game items can sometimes be priced prohibitively, which tends to scare players away. As a result, players look for “outside sources,” such as stolen items in the digital black market. Blockchain allows for a cheaper micro-transaction, making it possible for developers to sell game items at a more affordable cost.
Furthermore, values placed by users on a game’s intangible digital collectibles will reflect real, competitive value, especially if the game is popular. Thus, an immersive, enjoyable game partnered with crypto technology will attract more investors.
- Gamers having more control over their favorite games
Games built on blockchains can’t be changed. Consequently, gaming applications and other game content launched from a network will stay the same. You can download and install games from any location, and your gaming experience will remain the same.
Due to their decentralized nature, gamers also have more control over the game’s future upgrades and content.
- Improved payment systems
Using credit cards for in-game transactions isn’t the most secure mode of payment, as there have been cases of networks whose security was compromised. Credit card details used by gamers and other consumers have been leaked and sold on black markets.
Cryptocurrencies, on the other hand, are comparatively safer. Cryptos and similar tokens used for blockchain gaming app payments are more stable and secure. The collaboration between cryptocurrencies and gaming has made digital transactions quicker and more trustworthy.
- One profile for multiple gaming portals
Gamers typically create a profile for playing games. Often, they have to make one profile for one gaming platform. With blockchain, gamers can use one integrated gaming profile that can access various portals.
This approach gives blockchain gaming users a more convenient and improved user experience.
Blockchain technology and video games have resulted in a safer and improved gaming experience. Although the partnership is still in its early stages, the effects of blockchain on the gaming industry have been significant and resulted in increased investor and gamer interest.
Blockchain has redefined the gaming industry through its technology, providing robust security and improving overall user experience.
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