The blockchain technology that was primarily used to empower cryptocurrencies has now evolved into a revolutionary tech applicable to a variety of industries. Blockchain offers each sphere at least four unique features — decentralization, immutability, transparency, and enhanced security. These features could transform the gaming industry too. Blockchain is currently offering two main solutions to gamers: Non Fungible Tokens (NFTs) and smart contracts.
Blockchain database offers transparency, immutability, complete security, and privacy, allowing anyone to create a verifiable digital record. The technology can potentially revolutionize almost every industry, including supply chain, finance, eCommerce, and of course, the gaming industry. Blockchain platforms use robust data encryption techniques to ensure that hackers can’t modify or tamper with existing transactions stored on the blockchain.
Blockchain offers a number of other solutions to the gaming industry:
• Creating a decentralized distribution network for games.
• Creating more realistic economic systems within games.
• Restoring trust between game developers and distributors by recording sales on a blockchain.
• Fixing the high-cost, low-revenue problems of cloud gaming initiatives by distributing the server over a blockchain network.
• Encouraging game development competition outside of the monopolistic console and game-publishing industries.
5 ways in which blockchain is changing the gaming industry
Here’s how blockchain in gaming is transforming the sector:
1. NFT and in-game asset management
Blockchain gaming utilizes true asset ownership from the same concept at the core of cryptos such as Bitcoin and Ethereum. This is a fantastic innovation for players who have accepted that the items they buy will forever be stuck in the games they play. Typically, players are used to walled gardens that prevent them from moving their assets freely. The new blockchain system lets players verify that their items are rare and allows them to send anything to anyone. All this happens without forcing players to jump through hoops or sell their entire accounts just to transfer one item to a buyer.
2. Gaming economies
Decentralization can introduce a number of game-changing features, but the most exciting development is the creation of a decentralised gaming economy. Age of Rust by SpacePirate Games is an example of how blockchain is fundamentally changing what blockchain is making possible within the gaming industry. In Age of Rust players can receive ‘Enjin Coin’ (ENJ) – an Ethereum based cryptocurrency – for completing certain objectives, and the ENJ can then be used to buy gift cards for a variety of well-known brands such as Uber. Essentially, you can pay for your Uber ride by playing a video game. Alternatively, you can exchange your ENJ for other cryptocurrencies such as Bitcoin. Suddenly, all those hours you spend on a video game can now provide you with additional income.
3. Transparent revenue distribution
Like other forms of entertainment, video games are developed and distributed by different groups of people. Games have usually been distributed through centralized platforms like Steam, which get a considerable amount of the profits for giving developers exposure to a large market.
4. Opportunities for developers
Blockchain technology may appear to be shifting power towards the players, but it can also empower developers. Smart contracts allow developers to regulate their gaming economies by setting specific predefined conditions to control trading. This has the potential to control over-saturation of the in-game market and ensures trades are conducted fairly. Ultimately, developers can create any world they can imagine and they have the power to set the foundations for an ecosystem that players will use to build gaming economies.
The Blockchain technology is making it possible for games to become decentralized. Most of the traditional games launched to the market are controlled by gamer providers. With blockchain technology, this changes completely. Users are not only able to own their assets, but they also get decentralized solutions. Rather than relying on a centralized company that controls the whole game, players can be sure that the future of the platform depends on the players themselves.
Blockchain in future gaming
Blockchain was considered a disruptive technology once it became clear that Bitcoin wasn’t it’s only use case. Technology is revamping the gaming industry by enabling open communication between players and developers. Moreover, it can also be helpful in creating decentralized gaming systems where no single authority controls the gaming system. Blockchain aims at enabling gamers to play, discover, compete, and socialize with zero friction.