In 2021 the global gaming market is at 178 billion U.S. dollars, and by 2025 it will amount to 268.8 billion U.S. dollars annually. No doubt, the gaming industry has been evolving and expanding in more ways than one. With state of the art technology, gamers look for better and more exciting games.
Blockchain is a new technology that has entered the gaming world, and it is here to stay. As the industry embraces Blockchain and its benefits, we all wonder how it can disrupt and revolutionize the gaming industry.
This article will walk you through everything you need to know about Blockchain and how the gaming industry uses it.
Experts call Blockchain a potential game changer in the gaming world, but what exactly is Blockchain? A blockchain is a form of technology that provides a new method of transferring and sorting data. The main job of blockchain is that it breaks down large chunks of data into millions of tiny pieces and then disperses them across the internet.
Gaming Economies and Blockchain Technology
Blockchain leads to decentralization which can lead to many interesting features. For instance, Age of Rust is a SpacePirate Games which shows how Blockchain can evolve gaming economies.
In this game, for completing some goals or objectives, players receive an ‘Enjin Coin’, which is an Ethereum based cryptocurrency. Later, using this ENJ coin, players can buy gift cards from brands like Uber.
This essentially means that you can pay for your cab ride by playing a video game online. You can also exchange your ENJ coins for other cryptocurrencies like Bitcoin, Stellar, or Ripple.
Thus, playing video games online is not a waste of time anymore. You can earn money via your gaming activities. In other words, relax your mind while still earning money.
Gaming economies use Blockchain in a more advanced form leading to real life transactions by playing games. You can spend the money you earn from gaming a few hours daily in a plethora of places.
Though it may seem like blockchain technology only helps out players, it can also benefit developers. If developers enter smarter contracts, they can set a criteria to control the trading in gaming economies.
Thus, blockchain can ensure that trading is fair and stop over saturation in the intra game markets.
Gradually, developers can create their own economy in the gaming world. They can set rules and foundations for players to abide by and increase their revenue by charging fees or taxes for trades and transactions.
How is Blockchain Being Used in the Gaming Industry?
Blockchain has become very popular in different industries, especially ones with accountability. The technology has gradually become more popular because of its ability to create smaller, immutable data packets that you can exchange across the network.
The low cost of transferring money or other assets using Blockchain has made it easier to conduct such transactions. The lack of intermediaries and real time transfers helps solve several issues in the gaming industry.
Let us look at some important areas in the gaming industry where blockchain technology is involved.
Asset Exchanges in Gaming
Currently, digital assets which you can trade within games include OpenSea, Wax, or RareBits. But they lack accountability and transparency. To solve this, Blockchain steps in with its decentralized and transparent tokens.
Thus, Blockchain also protects players from hackers and frauds.
In the gaming world, there is a severe lack of transparency and accountability. Players need the games to be unbiased to want to play more and acquire assets.
As all video games are virtual and online, several developers could rig the gaming market or provide unlimited assets to specific players. Thus, there is a need for verifiability.
The industry can tokenize these assets with blockchain technology and lead to decentralized asset markets in the gaming world. Anyone can access and verify the blockchain ledger. This helps increase the player’s trust in the game.
Security and Safety
Centralized servers usually host Gaming platforms. These are not as secure as bank accounts, and someone else can steal your assets. Desktops or mobile apps transactions do not come with proper security measures.
Blockchain steps in here, as it is one of the most secure methods of storing value assets. Blockchain is immutable, and no one can tamper with it. Thus, storing gaming assets on Blockchain will increase security for players.
Cost and Time of Transactions
The gaming industry works on a global scale where players come from several countries to play with or against each other. In such a scenario, transferring assets without waiting for days taken to process such payments is possible via Blockchain.
Blockchain helps make instant, low cost payments anywhere across the globe without any restrictions.
As technology evolves, the amalgamation of Blockchain with gaming paves the way for several possibilities. It can also lead to real life opportunities in the virtual world of games.
With the advancement in VR and AI, the gaming world will integrate better with the real world. Here, Blockchain will help create an ecosystem to make things work effortlessly while being a back end player itself.
There is still a long way to go, but we are steadily moving towards a future in the industry that will change your gaming experience altogether.