The gaming industry is witnessing exponential product sales due to the new releases of hugely popular video games and next-generation consoles, as well as significant consumer spending on games. In 2022, more than half of the US population (approximately 54.2%) were digital gamers. In 2024, the sector is anticipated to grow to $219 billion globally.
It’s undoubtedly one of the most significant and innovative sectors in technology today. Along with it being a fast-expanding sector, its dynamics and unique characteristics make it highly vulnerable to disruptions.
With blockchain in the gaming arena, it’s a fascinating universe where reality in a virtual world is possible. And with the advancements in VR technology, these experiences are only going to rise. Blockchain has the potential to revolutionize the gaming industry, offering new opportunities for in-game asset monetization as well as improved security and transparency. Adopting this technology can provide:
- A secure environment for developers and businessmen to produce, distribute and eventually monetize games
- A secure system for players to buy and sell in-game currency
- A technology that can help players from falling prey to fraudulent transactions.
Blockchain essentially offers a global network of digitally secured nodes that serve as a decentralized, transparent ledger. This means there is no single entity that controls the network or a single database that is vulnerable and there are no means to reverse previously completed transactions.
Transferring money or any other tokenized asset globally is made simpler by the low cost of transactions. Since there is no middleman involved, these transactions are almost real-time.
A blockchain-based system can be used to authenticate and safeguard various kinds of digital data including in-game history, digital objects and tokenized assets because it functions as a distributed database. The major goal is to return control to the players rather than the gaming industry.
Players will have full control of their digital assets and they are free to trade them anytime. Some examples of blockchain-based games are:
- Cheese Wizards
- Gods Unchained
Benefits of Blockchain in the Gaming Industry
Blockchain technology has benefited numerous enterprises that lacked accountability. The capacity to establish an environment that enables irreversible online transactions between strangers is the core of this technology. Some of the biggest issues facing the gaming business today can be resolved by blockchain. Below are a few challenges that blockchain can address:
Gaming platforms are located on centralized servers and transactions are frequently done on mobile devices or computers without proper security safeguards making them vulnerable to thefts. Blockchain is widely known for being the safest method of storing assets as they are extremely difficult to hack.
A player would feel more secure when storing his digital assets on a blockchain. Even if the game is no longer available, you have the opportunity to withdraw your deposits at any moment.
NFTs have a significant role in revolutionizing the gaming sector. They have made it possible for users to own and control the things they use to create, acquire or trade.
Non-fungible tokens (NFTs) are digital assets based on blockchain technology. They are unique and cannot be replaced or traded or exchanged.
The decentralized distribution network tracks the sales on a blockchain, attempting to build trust between game developers and distributors. The NFTs operate on the concept of rarity or availability and the blockchain contributes to the transparency of digital transactions.
3. Management and Control
Games have become more interactive than before as they allow players to create their characters and storylines. As blockchain has enabled players to vote, a change will be implemented if the majority of players or perhaps almost half of them believe that the game should be altered in some way.
Disadvantages of Blockchain in the Gaming Industry
There is still a lot to learn and modify about blockchain technology resulting in several issues that need to be resolved, including scalability, high starting prices and accessibility to the general public.
Depending on the blockchain game it may be difficult for players to set up crypto wallets and purchase crypto. The user interface and general programming principles used by the developer will decide how technically accessible a blockchain game is. It’s important to make the programming principles easy to understand along with guidance on how to use them.
2. Difficulties in Entering
Launching and operating a blockchain game may be expensive. Additionally, scalability issues and a lack of adoption may restrict a developer’s work. In many play-to-earn games, players are expected to buy NFTs to start playing.
Many popular games also prevent players from moving forward unless they pay money. Although gamers can collect virtual money while playing, most people find it inconvenient due to the time and effort needed.
3. Limited Selection of Games
Small, independent teams or indie game developers frequently create blockchain games. They might struggle to compete against the world’s largest gaming corporations.
The poor playing skills of some players and the small number of games currently available are two other possible drawbacks of blockchain games. Because the crypto gaming market is still developing, there aren’t as many games available currently.
Soon this will be a thing of the past as developers are working on many blockchain-based games and are addressing scalability issues too.
Over the past three decades, the gaming industry has advanced significantly, moving from pixels to games with realistic graphics and action. But until now, playing games had only been for entertainment and now that games have been technologically improved, the best is yet to come.