Blockchain technology is rapidly transforming various industries, including finance, supply chain management, and healthcare. The gaming industry is no exception to this transformation. As blockchain technology is being increasingly used to improve gaming experiences, enhance security and transparency, and create new revenue streams, blockchain-based gaming is witnessing a new rush of awaiting success.
In this article, we will explore ten ways in which blockchain technology is revolutionizing the gaming industry. From enabling players to truly own their in-game assets to providing new opportunities for play-to-earn models, blockchain is set to change the way we play games.
Additionally, we will also look at the challenges and opportunities that come with the adoption of blockchain technology in gaming, as well as the future of blockchain-based gaming.
But first, let’s look back at how the gaming industry has come to be as widespread as it has.
How the gaming industry blew up
The gaming industry has undergone explosive growth over the past few decades and shows no signs of slowing down in the near future.
The main reason for the exponential growth is the recent advancement in technology. The gaming industry has benefited greatly from advancements in technology, particularly in the areas of graphics, processing power, and online connectivity. As these technologies have improved, game developers have been able to create more complex and immersive gaming experiences that appeal to a wider audience.
Furthermore, the rise of smartphones and mobile devices has had a major impact on the gaming industry. Mobile gaming has become increasingly popular over the past decade, as more and more people have access to powerful smartphones and tablets. This has led to the development of a vast ecosystem of mobile games, many of which are free-to-play and highly addictive.
The growth of online gaming has been another key factor in the growth of the gaming industry. The ability to play games online with other people from around the world has greatly expanded the gaming audience and created new opportunities for game developers.
These trends are likely to continue in the future, as game developers continue to innovate and create new and exciting gaming experiences.
When there is such an enticing industry, the latest and greatest technology is bound to dig its claws into it in hopes of trying to make it better, right? In comes blockchain technology, ready to revolutionize the already fast-growing gaming industry.
Let’s see how, shall we?
How blockchain technology is making games better
While the gaming industry in itself has been booming widely, it’s interesting to see how blockchain technology makes it so much better!
- True ownership of in-game assets: Blockchain technology enables players to truly own their in-game assets, as they are recorded on an immutable blockchain ledger. This allows players to transfer, sell, and trade their assets outside of the game.
- Enhanced security: Blockchain technology provides enhanced security for in-game assets, as they are stored on a decentralized and tamper-proof ledger.
- Increased transparency: Blockchain technology allows for increased transparency in gaming, as all transactions are recorded on a public ledger that can be accessed by anyone.
- Play-to-earn models: Blockchain-based games can enable players to earn real-world value for their in-game actions, creating new opportunities for players to earn money while playing.
- Decentralized governance: Blockchain technology allows for decentralized governance of games, enabling players to have a greater say in the development and direction of the game.
- No middlemen: Blockchain technology allows for peer-to-peer transactions between players, eliminating the need for middlemen such as game publishers or marketplaces.
- Cross-game compatibility: Blockchain technology enables in-game assets to be used across multiple games and platforms, creating new opportunities for players and game developers.
- Unique gaming experiences: Blockchain technology allows for the development of unique gaming experiences, such as decentralized virtual worlds and play-to-earn games.
- Reduced fraud: Blockchain technology can reduce fraud in gaming, as all transactions are recorded on an immutable ledger that cannot be altered.
- Community-driven development: Blockchain-based gaming can be developed in a community-driven manner, enabling players to contribute to the development of the game and provide feedback to developers.
Clearly, blockchain technology is not only making games better to play, but it is also improving the overall gaming experience. It’s fun to see some applications in real life to truly appreciate what blockchain has done!
Current blockchain-based games
Below are some examples of widely played blockchain-based games played today:
- Axie Infinity is a blockchain-based game that allows players to collect, breed, and battle creatures called Axies. The game has gained popularity due to its play-to-earn model, which allows players to earn cryptocurrency by playing the game.
- Decentraland is a blockchain-based virtual world where players can buy, sell, and build on virtual land using the game’s native cryptocurrency, MANA. The game has gained popularity for its unique approach to virtual real estate and its ability to allow players to monetize their creations.
- CryptoKitties is a blockchain-based game where players can collect, breed, and trade digital cats. Each cat is unique and stored on the blockchain, making it impossible to duplicate or destroy. The game gained popularity for its novel use of blockchain technology and its ability to create a market for digital collectibles.
- Gods Unchained is a blockchain-based collectible card game that allows players to buy, sell, and trade unique cards using the game’s native cryptocurrency, Ether. The game has gained popularity for its approach to ownership and trading of digital assets, as well as its competitive gameplay.
- The Sandbox is a blockchain-based game that allows players to build and monetize their own virtual worlds. Players can use the game’s native cryptocurrency, SAND, to buy and sell virtual land, as well as monetize their creations within the game. The game has gained popularity for its unique approach to user-generated content and ownership within virtual worlds.
These games are made much easier for several reasons mentioned in the previous section. The presence of blockchain technology makes these games easier to execute, simpler to use, and safer to play.
However, every new technology comes with its own set of problems.
Improving blockchain gaming for wider adoption
There are always two sides to the same coin. While I’ve mentioned all the great advantages of using blockchain technology in games and its applications, it is also important to note that this new technology comes with new challenges. Here are to name a few:
- Traditional blockchains such as Ethereum can struggle with processing large volumes of transactions, leading to slow and expensive transactions making it difficult to scale. To address this issue, developers are exploring alternative scaling solutions such as sidechains, state channels, and sharding. These solutions aim to increase the throughput of blockchain transactions, allowing for more efficient and affordable gameplay.
- The user experience of blockchain-based games can be challenging for players who are not familiar with blockchain technology. To address this, developers are working to create more user-friendly interfaces and experiences, and to abstract away some of the complexities of the blockchain technology behind the scenes. Additionally, blockchain-based games are increasingly integrating with traditional gaming platforms and ecosystems, making it easier for players to discover and engage with blockchain-based games.
- Blockchain-based games are often built on separate blockchain networks, which can create interoperability challenges when it comes to sharing assets and data between different games. However, developers are exploring standards such as ERC-1155 and cross-chain protocols such as Polkadot and Cosmos. These solutions aim to create more seamless interoperability between different blockchain-based games and networks.
- As with any emerging technology, blockchain-based gaming faces regulatory challenges in many jurisdictions. Developers and industry organizations are working to engage with regulators and policymakers to ensure that blockchain-based games can operate within a clear legal framework. Additionally, some developers are exploring decentralized models of governance and ownership that can minimize the regulatory burden on traditional centralized game developers.
While there are still many challenges facing the adoption of blockchain-based gaming, developers are making significant progress in addressing these challenges and creating a more vibrant and accessible ecosystem for players and developers alike.
What does the future of blockchain gaming look like?
The future of blockchain-based gaming looks promising, as the industry continues to grow and evolve. But there are still a couple of improvements yet to happen before we can accept that blockchain-based gaming will take off in a magnificent way. As technology evolves, we hope to see a few of these improvements take shape:
- Increased adoption
- Mainstream acceptance
- Greater interoperability
- Improved scalability
- Integration with NFTs
- The emergence of new game genres
The future of blockchain-based gaming looks bright, with exciting opportunities for game developers and players alike. As technology continues to evolve, we can expect to see even more innovative uses of blockchain technology in gaming.