How Blockchain is Changing the Gaming Industry
It appears that the gaming industry has never had a shortage of users or experienced a lot of turnovers. Discover how the entry of NFTs into this space, as well as the recent rise of blockchain video games, can change the gaming industry.
Every day, the world discovers new applications of blockchain technology. Most people think of Bitcoin and money when they hear "blockchain," but this technology has many more applications.
Agriculture corporations, energy companies, and the art world use blockchain. But there's another area that's getting in on the act: 'Online Gaming.'
Over the previous few years, the video game industry has experienced tremendous expansion. According to Statista:
The Online Gaming industry is presently valued at $178 billion and will increase to $268.8 billion by 2025 as per predictions."
Continue reading to see how blockchain technology transforms the way online gaming platforms work.
Blockchain is a chain of data blocks on a computer network visible to all users and anybody else. It can't be moved or changed. This method preserves a complete record of everything that has happened on the network with respect to the data.
The system is decentralized, which means that the game is owned and controlled by the users, who own digital assets and game objects, rather than by a central authority.
On a cryptocurrency blockchain game, you hold a particular amount of digital assets known as NFTs, just as you own a certain number of cryptocurrencies such as Bitcoin, Ethereum, or Litecoin.
These are game objects, but they are yours to own in the same way that cryptocurrency is, and they may be transferred not only to a wallet but even outside of the game.
Role of NFTs (Non-Fungible Tokens)
Blockchain technology can transform virtual economies by giving gamers unprecedented transparency in item ownership. The items become irreplaceable when owned under a non-fungible digital contract named NFT saved in the blockchain.
NFTs, ensure that any in-game item belongs to and is always accessible to its rightful owner. Every item collected will become unusable if a gaming server goes down for an extended period or is permanently shut down.
NFT items will never be lost due to the decentralization provided by the blockchain, even if the game ceases to exist.
Another significant benefit is the inherent worth of NFT goods. Consider purchasing a skin for your character, a recent trend in today's online games. You won't sell that skin if you buy it in a non-blockchain game because it has no inherent worth. You'd have to sell your entire account to acquire money, and even then, you'd only get a fraction of what you bought for the skins.
6 Ways Gaming Industry is being Transformed by Blockchain
According to experts, adopting blockchain in gaming is a piece of cake due to its liquidity and the fact that gamers are used to tokenization.
Here are a few interesting insights into how blockchain will transform the gaming industry.
Increasing the Scrutiny of Gaming Market
Because of blockchain's decentralization and highly effective data encryption techniques, hackers will find it nearly impossible to break into data across the server.
Thus, it creates a secure environment for game developers and entrepreneurs, resulting in higher-quality output. Hackers would be unable to shut down a decentralized blockchain network since there are no servers to target.
Control Over Favorite Video Games
Blockchain-based gaming networks are immutable. This ensures that network-deployed gaming programs and series will remain unchanged in the future. This allows you to download and install different versions of video games from any location without compromising your gaming experience.
Trading Resources and Earning Rewards
Gamers and developers can create resource-rich games and apps through blockchain gaming mining techniques, update game versions, and receive awards. This allows them to contribute and earn tokens while enhancing their user experience.
Enhancing the ownership of in-game assets
Blockchain technology can help with in-game asset ownership by bringing more transparency and legislation to the gaming industry. One of the essential aspects of blockchain-supported gaming is actual digital ownership, which will allow players to exchange rare items and profit.
In a blockchain-based game, smart contracts are utilized to handle all transactions. Smart contracts are run on pre-programmed parameters and are irreversible. As a result, when you begin a blockchain-based game, all in-game items gained through smart contracts are transferred to users' public address accounts as fast as possible.
Apart from that, smart contracts are run without a central authority. No one can change the public address where the in-game assets are stored or the private ownership of those assets. They will remain the property of whoever owns them in the game.
Enhancing the Value Projection of Intangible Assets
Players had invested around $6.7 million by December 6th after Crypto Kitties was introduced on November 28th, 2017. According to these statistics, gamers will value intangible digital collectibles when a fun game is established on the blockchain.
Players will be eager to pay real money for intangible digital valuables if you create an engaging blockchain game. The combination of cryptocurrency and exciting and enjoyable video games will undoubtedly lead to a surge in investment.
Improving Payment Methods
Cryptocurrencies are highly safe and anonymous. Multiple examples of breached extensive networks have already occurred in the gaming industry, with consumers' credit card information being exposed online and sold on black markets.
Local crypto tokens or other similar tokens are used to make payments in blockchain gaming applications, resulting in a better transaction experience. In this sense, combining cryptocurrencies with video games can increase payment options for gamers.
Top Play to Earn in Blockchain Games
Here are some of the most technically advanced and well-known blockchain-based games.
CryptoKitties is a game that uses the Ethereum blockchain network to operate. The purpose of the game, developed by Canadian studio Dapper Labs, is to gather, breed, buy, and sell various CryptoKitties. Each CryptoKitty is a one-of-a-kind NFT, which implies the owner has a one-of-a-kind pet.
My Crypto Heroes
My Crypto Heroes is a multiplier RPG in which you level up your character by completing tasks and engaging in PVP warfare. The game has a pixelated art style, entertaining quests, and a lot of depth. The game, like CryptoKitties, is based on the Ethereum blockchain network.
My Neighbor Alice
My neighbor Alice is a charming multiplication game where you can construct and maintain your island. Anyone can purchase a virtual island and use it to collect and build various goods. My neighbor Alice's creators claim that the game is "introducing blockchain to millions of gamers," and there's a lot to admire about it.
It is a trading card game that is built on the Ethereum blockchain. Users can play and trade NFT-based cards of various kinds using the gaming features. The company consistently allows space for more users on the platform.
We can now see how merging cryptocurrencies with video games can provide a more fun, safe, and fluid gaming experience. However, the cryptocurrency gaming industry is still in its early stages. In the future years, users will be able to play more exciting new games.
The gaming sector has never disappointed its customers. While the internet aided the advancement of the gaming industry, it was unable to keep unscrupulous persons and unethical gamers out.
Fortunately, blockchain-based gaming is the next step toward safeguarding video games and establishing a long-term industry standard. As a result, cryptocurrency and video games can drastically alter the gaming industry.