Blockchain technology is the next big thing in the gaming industry. Blockchain-based games have been all around the corners for a few years. However, the industry has seen a surge in the number of games in recent times. This technology has opened new opportunities for businesses that want to create decentralized gaming apps.
As per the latest Technavio report, the global gaming market is expected to grow by $125.65 billion, increasing at a CAGR of 12.40% from 2020 to 2025. The integration of Blockchain technology in gaming apps is the significant factor driving the market growth.
The graph given above clearly explains the growth in the gaming market. However, to further know more about Blockchain in the gaming industry, let’s move forward to our blog that addresses some of the aspects related to exploring the potential of Blockchain
in gaming and its limitations. Some real-world examples and the future of Blockchain in the gaming industry, which is slowly gaining popularity among business owners and entrepreneurs. Let’s delve deeper to understand more.
But before moving forward to introduce blockchain technology in gaming, let’s understand what is blockchain and how a blockchain development company can help to use it in the gaming industry.
What is Blockchain and how is it used in gaming?
Blockchain is a decentralized and distributed digital ledger that enables secure transactions and maintains records. It has created a new gaming experience for both businesses and players who use NFTs and cryptocurrencies to purchase in-game assets that could be exchanged for real-life money. For instance, Axie Infinity has millions of players globally that use Ethereum-based cryptocurrencies.
Role of cryptocurrency in gaming
With its popularity in the gaming industry, cryptocurrency has also evolved. Cryptocurrency is a digital currency that uses cryptography to secure, verify and facilitate transactions. It allows users to make payments online without going through traditional payment systems like banks and credit card companies.
Cryptocurrency, such as Bitcoin and Ethereum, enables secure and fast payments for various in-game purchases, like avatars, power-ups, themes, unique artifacts, etc. It also allows players to earn rewards or Crypto tokens while playing games.
With a significant boom in the gaming industry, you can’t deny the changing cryptocurrency trends that took away the entire gaming market. Moreover, with the rise in crypto games/blockchain games, there are various ways in which blockchain technology is being used in the gaming industry that include:
NFT’s
NFTs are non-fungible tokens that can be traded or used within blockchain games to purchase characters, memes, videos, and other digital assets. NFTs create a way for gamers to own their digital possessions truly. This gives players more control over what happens to these items and makes them easier to trade and sell since there’s no need for an intermediary like another player.
Play & earn
Blockchain has given rise to a new sub-genre called “Crypto-Games.” Crypto games are different from traditional games because they allow players to earn cryptocurrency (or digital currency) by playing the game. Cryptocurrency from these games can be converted into real money or used to buy new items within the game. So how does this work?
When you play a crypto game, a cryptocurrency is rewarded to you that can be used outside the game in “the real world.” The idea is to encourage gamers to continue playing by giving them an incentive in cryptocurrency so that they can redeem it for real-world goods and services.
Virtual events and tournaments
Virtual events and tournaments are a critical component of the overall gaming industry. For decades, virtual events have been organized globally, which requires many resources for managing teams, prize pools, and event venues. However, many challenges have been faced in this process, such as the high registration cost, ticket prices, bandwidth, cybersecurity, etc. Also, it isn’t easy to verify the rewards participants earn.
Blockchain technology can make this process easier by providing the ability to track and verify who has received the rewards for their matches or competition wins. Blockchain technology is decentralized and offers secure transactions among users, and it automatically tracks data from any network where it is implemented. Therefore, it is easy for gamers to participate in virtual events and tournaments using blockchain technology.
According to a Newzoo report, In-game transactions will generate 9.6% revenue growth on a mobile platform by 2023.
While the above discussed are a few ways that allow users to earn digital assets cautiously, there’s no doubt to it that the gaming industry is transforming using blockchain technology. How? Let’s find out.
How is the gaming industry transforming using Blockchain technology?
It’s evident that Blockchain technology has been around for a while, but it recently received more attention for its potential to transform various industries. In recent years, due to its benefits in the different sectors, it’s seen as the first choice for the gaming industry.
Some of the benefits of Blockchain that are helping transform the gaming industry and build blockchain games include:
Secure and transparent transactions
Blockchain is a secure, transparent, and immutable technology, ensuring no double-spends or fraud in transaction records occurs. It adds a layer of confidence to users when engaging in digital transactions and makes it ideal for games where users share sensitive data or virtual assets, such as in the case of NFTs.
Enhanced security
Since Blockchain offers an additional layer of security by using encryption systems such as Secure Messaging and Two-Factor Authentication, it can protect sensitive data such as player information, game data, and user transactions from being tampered with or hacked.
Improved user experience
Blockchain can help improve the overall user experience by providing a more efficient, secure, and transparent way to engage in digital transactions and access virtual assets.
With blockchain gaming, users have more control over their gaming experience. This trend has manifested itself in several ways, from allowing players to create their characters, storylines, and even playing. Also, it enables them to download various video games in different versions from any location without risking their gaming experience.
Verifications
A blockchain gaming platform helps ensure that all transactions and interactions between different parties are verified and legitimate. This helps prevent fraud, one of the most common challenges in modern-day gaming platforms. In addition to verifying transactions, businesses can also use Blockchain to guarantee that no individual or party has been paid twice for the same service or goods rendered since each transaction is recorded.
Trading resources
Players can trade their items for profits or other resources. Since Blockchain creates a record of each item and its ownership, players can deal with complete confidence, knowing that their items will not be stolen or duplicated. It also allows them to sell or buy in-game assets from other players.
Earning rewards
Players can earn rewards in the form of cryptocurrencies by completing quests and missions. In traditional games, players are rewarded with points that have no monetary value outside the game itself. But, with blockchain-based games, they can earn cryptocurrencies to use as real money to purchase items from other players or even buy products on e-commerce websites.
Creating integrated gaming profiles
As blockchain games are the new talk of the town, it is possible to create a centralized community where users can access different games. It allows users to have one profile that they can use across multiple platforms, thus enhancing their user experience and making it easier to access different games and purchase items.
Compared to traditional gaming, blockchain games have taken over the entire gaming industry. While there are many benefits of using blockchain technology in gaming, there are some limitations as well.
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