Blockchain technology has created a big wave in the gaming industry. Blockchain-based games have been widely available for a few years now. However, there are now more games available than ever before. This innovation makes it possible to develop decentralized gaming applications.
To discover more about the possibilities of blockchain in the gaming industry of the future, let’s read this article in depth. Before incorporating blockchain technology into gaming, let’s first understand what blockchain is and how it’s used in the gaming industry.
What is blockchain? How is it employed in gaming?
Blockchain is a digital ledger that is distributed and decentralized, allowing for secure transactions and keeping records. It has produced a distinctive gaming experience for companies and players who use NFTs and cryptocurrencies to purchase in-game goods that can be exchanged for real money.
Cryptocurrency’s function in gaming
The gaming industry has helped cryptocurrency grow in sophistication. Cryptocurrency employs encryption to safeguard, confirm, and speed up transactions. Users can pay online without utilizing traditional payment methods such as banks or credit card companies.
Payments for a variety of in-game items, including avatars, power-ups, themes, unique artifacts, and so forth, can be made securely and quickly using cryptocurrencies like Bitcoin and Ethereum. It also allows players to earn rewards or cryptocurrency tokens through gameplay.
You can’t refute the altering cryptocurrency trends that eliminated the entire gaming business, especially given the substantial growth of the gaming industry. Additionally, given the popularity of cryptocurrency and blockchain games, blockchain technology is being applied in the gaming sector in a number of ways, including:
NFTs are non-fungible tokens that may be traded or used to pay for avatars, memes, videos, and other digital goods in blockchain games. NFTs give gamers a way to genuinely own their digital assets. Due to the lack of a middleman like another player, players have more influence over what happens to these objects and can trade and sell them more easily.
Play and earn
Blockchain technology has given rise to a new subgenre known as “Crypto-Games.” Games that allow players to earn cryptocurrency while playing the game set them apart from typical games. These games’ cryptocurrency can be exchanged for real money or used to purchase additional in-game goods.
So, how does it work? As a prize for participation in a blockchain game, you receive a cryptocurrency that you can use in “the real world” instead of the game. The goal is to encourage users to stay playing by rewarding them with bitcoin that they can use to buy real-world goods and services.
Virtual tournaments and events
Virtual tournaments and events are essential to the broader gaming industry. Virtual competitions have been held all over the world for decades, and handling the teams, prize money, and event spaces demands a lot of resources. However, this procedure has been fraught with difficulties, including exorbitant registration fees, expensive tickets, limited bandwidth, cybersecurity issues, etc. It is also difficult to confirm the rewards that participants receive.
By enabling the capacity to track and verify who has received compensation for their victories in matches or competitions, blockchain technology can simplify this procedure. Blockchain is decentralized and provides safe user-to-user transactions, and it tracks data from any network where it is used automatically. Thus, blockchain makes it simple for gamers to take part in online competitions and events.
How is blockchain technology impacting the gaming industry?
It is clear that blockchain technology has been around for a while, but recently it has attracted greater attention because of its potential to revolutionize many industries. Because of its advantages in a variety of businesses, it has recently risen to the top of the gaming industry’s priority list.
Below are some advantages of blockchain that are transforming the gaming sector and enabling the development of blockchain games:
Secure and transparent transactions
Blockchain’s transparency, security, and immutability ensure that there are no double purchases or other sorts of transaction record fraud. It increases user confidence when making digital purchases and is ideal for games where players trade virtual products or personal information, as in the case of NFTs.
Blockchain adds another layer of security by utilizing encryption techniques like Secure Messaging and Two-Factor Authentication. This can prevent sensitive data, such as player identification, game data, and user transactions, from being manipulated or hacked.
Increased user satisfaction
Blockchain provides a more efficient, secure, and transparent way to execute virtual asset transactions and get access to them, which can help to improve the user experience as a whole.
Blockchain gaming gives users more control over their game experience. This trend has shown itself in various ways, such as by allowing users to create their own characters, stories, and gameplay. This also allows them to download a variety of video games in various versions from any location without risking the integrity of their gaming experience.
A blockchain gaming platform helps to ensure the legitimacy and veracity of all parties’ exchanges and interactions. This helps to avoid fraud, which is one of the most common issues in today’s gaming systems. Because each transaction is recorded, businesses may use Blockchain to ensure that no person or party is paid twice for the same service or commodity, in addition to utilizing it to verify transactions.
Players can trade their items for cryptocurrency or other items. Because Blockchain keeps track of every object and its owner, players may transact with complete assurance that their belongings will not be stolen or replicated. They can also buy and sell the in-game assets of other players.
Players can earn cryptocurrency as rewards for fulfilling tasks and objectives. In traditional games, winning players gain points that have no monetary value outside the game. Consumers, on the other hand, can earn cryptocurrencies through blockchain-based games, which they can then use as real money to purchase things from other gamers or even eCommerce websites.
Creating integrated gaming profiles
Because of the popularity of blockchain games, it is now possible to create a centralized community where players may access a range of games. Users can create a single profile to use across several platforms, improving the user experience and making it easier to access different games and make purchases.
Blockchain games have fully displaced traditional gaming in the industry. While using blockchain technology in gaming has various benefits, it also has certain limitations.
Limitations of Blockchain technology in gaming
However, the adoption of blockchain technology has brought new obstacles as well as opportunities for a variety of enterprises, including:
Crypto games are difficult to play not because of their stories, but because of the way they are played. To start a game, a player must first register a user account, which is a straightforward procedure. Depending on the kind of blockchain game, the next challenging step is for a player to set up a cryptocurrency wallet and buy a certain amount of cryptocurrency.
Since regulatory organizations are still attempting to comprehend how cryptocurrencies like MANA, Theta, and others work and whether they should be utilized in blockchain gaming, their use creates a hurdle.
The gaming industry is tremendously competitive, with new games and platforms being launched on a regular basis. It may be difficult for blockchain-based games to compete with traditional games.
Many Blockchain-based games have been developed in the market. Now that you’re aware of the benefits and drawbacks of blockchain technology, let’s look at some real-world instances of the greatest blockchain games.
Blockchain in the gaming: How will the future gaming industry look like?
Blockchain appears to have a bright future in the gaming industry. As more companies examine blockchain technology, we should expect to see more blockchain-based games and platforms in the future.
The future of gaming is crypto. The items we purchase in-game will have real-world value, and the games we play will be more realistic. So, if you want to profit from blockchain in the future, you must start investing in it now.
Furthermore, as the technology matures and becomes more widely used, we may expect to see additional Blockchain features and uses in gaming, such as faster and more secure transactions.