Graphic design and gameplay has improved significantly since the years of basic graphics and simple gameplay. Nowadays, entire the world is a multi billion-dollar industry and one of the most innovative technology which has touched gaming is the blockchain. Undoubtedly, the same technology that created Bitcoin and Ethereum is attempting to get into Proffesionally Playable Games, PC games and mobile games. In this blog, I will attempt to show how important blockchain is for the gaming industry, how is it emerging and why is it so much important for gamers, developers, and investors.
Be it a avid gamer, a game builder, or a person who wants to learn more about gaming world, here is a comprehensive guide that will aid you to grasp the very basics. Let’s start.
What is Blockchain and How Does It Work? Just like any other industry, we have to understand how blockchain is transforming the gaming industry. One of the main things that you want to understand is that blockchain is now a fully developed ledger that lacks the ability to record transactions on numerous computers which benefits the basic idea of privacy and security in general. Adding to that, it can be explained as a system that contains information which has been stored in blocks that are connected in a chain in a sequential manner. Once a block is attached to the chain it is impossible to induce any changes therefore making it highly safe.
Blockchain is the core technology behind cryptocurrencies and is widely believed that its sphere of influence does not end at just digital currency. It is being utilized for a multitude of services within different fields, including healthcare, supply chain management, and now, gaming.
What is the value of Blockchain for gaming? At the intersection of gaming and technology, there are always new inventions waiting to be made, and blockchain technology is no different. Here are a few reasons as to why the gaming industry is the most impacted by blockchain technology.
Ownership of In-Game Assets In regard to modern gaming, players will quickly realize that they do not have complete ownership of items they either purchase from the in-game shop or unlock. All of those items are controlled and saved by the developer of the game, which means that in the event the game shuts down or an item gets removed by a developer, the player will not be able to use the item again.
Thanks to blockchain technology and NFTs , players can reserve their in-game items as non-fungible tokens. These tokens are put on the blockchain network, where they can be verified, making them unique and owned by the player.
Play-to Earn Models With blockchain come play-to-earn (P2E) models, which allow players to gain real value through playing video games. This is immense, especially for countries with developing economics, as gaming can be a means of making money. This method is already used for Axie Infinity, where users can earn money in crypto for breeding, battling, and trading Axies.
Transparency and Fairness Every game has its own economy and mechanics. With Blockchain, transparency and fairness is ensured in gaming. Every transaction gets recorded on the Blockchain, hence making it possible for players to confirm the fairness of the in-game economy. Referring to games which have in-game purchases or loot boxes, players’ trust and transparency has always been a sensitive issue.
Interoperability Assets in one game can be usable in other games and on different platforms. That is possible due to Blockchain that permits interoperability. For instance, a sword earned in a game could also be used in a different game if both of them use the same Blockchain standards. This brings a new innovation in the gaming industry enabling cross-game economies and experiences.
What Are the Effects of Blockchain Technology On the Gaming Industry Now, let’s take a more in-depth inspection of how the gaming world is changing and evolving due to Blockchain.
True Ownership and Digital Scarcity One of the most important aspects of blockchain in gaming is true ownership. As most gamers know, in traditional games, players use money to purchase game items such as characters, weapons, skins, etc, but those items are not actually theirs. They simply rented the item from the game developer. With the help of Blockchain, players can now truly own their items in-game as NFTs.
As an illustration, players in Decentraland, a virtual environment that utilizes blockchain technology, can purchase, trade, or sell virtual land and assets as NFTs. The blockchain uniquely stores these assets so there is no duplication. This technology allows these assets to be verified and owned by the user thereby creating a sense of scarcity. The items become even more valuable with rarity.
Play-to-Earn Models The introduction of blockchain saw the new concept of play-to-earn (P2E) models emerge where users can earn money by simply playing games. It eradicates the previously set pay-to-play and free-to-play structures.
Another Example is Axie Infinity , a blockchain game that enables users to earn cryptocurrency by battling, trading, and breeding digital beasts called Axies. Users can easily sell the Axies or even the cryptocurrency for cash. These models tend to be more accepted in developing countries due to the new generation of income it provides online.
Decentralized Gaming Economies By incorporating blockchain technology, a decentralized gaming economy is created, giving the user more power in the in-game economy compared to traditional games. For those types of games, the developer has full control over the economy and currency along with all in-game items. With blockchain, users are now able to fully control the economy.
Players are now capable of building, owning, and profiting from their own gaming experiences. For example, in The Sandbox, which is a metaverse that is based on the blockchain, users have the ability to create games, sell in-game items, or even charge other players for access to their innovations. All of this fosters increases in profit, all the while fostering empowerment for players.
Improved Security and Transparency Moreover, with blockchain, there is a boost in security and transparency within gaming. Since everything is achieved on the blockchain, players can be confident of verifying every transaction. Additionally, it is crucial for in-game economies and items to be fair. This is more than crucial during in-game purchases and loot boxes. Having fairness has been problematic many times in the past.
As an example, in Gods Unchained, which is a trading card game that is based on the blockchain, every card can be proven as unique and owned, making the game much more secure. It is critical to verify each card for maximum transparency for games.
Integration and Cross-Game Features With the use of blockchain, assets in-game can be transferred to different games and platforms. This means that, assets have been integrated. Many new opportunities rise in relation to inter-game experiences and integrated economies.
Take for instance, a sword that can be wielded in multiple titles if both games are on the same blockchain. This makes for a more seamless and immersive gaming experience where players are able to carry their assets across various games and worlds.
Gems of Reality of Blockchain in Gaming To understand how blockchain is integrated with gaming, let’s take a look at some of these real life cases:
Axie Infinity Axie Infinity is a blockchain driven game where players earn cryptocurrency through breeding, battling and trading digital creatures called Axies. The game has gained incredible traction especially in developing countries because it has become a source of income for many players.
Decentraland Decentraland is a blockchain electronic universe where players can purchase and sell land and items as NFTs. The game has created an astounding virtual economy with virtual ‘real estate’ selling for millions of dollars.
The Sandbox The Sandbox is a blockchain based ‘metaverse’ where players can create, own, and monetize their gaming experiences. The game has collaborated with major brands like Atari and The Smurfs to build ‘buzzing’ experiences.
Gods Unchained Gods Unchained is a free-to-play blockchain-based trading card game where players have the freedom to buy and sell their cards as NFTs on an exchange. With its meritocratic approach and transparency, the game has cultivated a strong player base.
The Future of Blockchain in Gaming There are great possibilities provided by blockchain in gaming. However, this is just the tip of the iceberg. Here are some trends to look forward to in the next years:
Mainstream Adoption As blockchain and its accompanying technology become more simple and user friendly, gaming will witness an embrace of its mainstream. This may include intergration with popular gaming platforms like Steam and Epic Games Store.
Enhanced Gaming Experiences With blockchain comes more lively and engaging gaming interactivity and experiences. For instance, we may have games in which players can build and run their own economy, or games where assets owned by players can be utilized on different games.
New Monetization Models The introduction of new monetization models like play-to-earn and gamified decentralized economies is something blockchain will continue doing. This will open new doors for the players, developers, and even investors.
Increased Transparency and Fairness There will be greater equality and transparency in gameplay with blockchain integrated in the game.
Gamers will now have the ability to assess the credibility of systems and economies within the game. This will positively impact the trust gamers have in the game.
Conclusion Blockchain is changing the trends of the gaming sector in ways that few could fathom just a few years ago. It has brought about real ownership of assets earned in games, new play to earn frameworks, and decentralized gaming economies. Additionally, blockchain gaming is ushering in an era of greater transparency, fairness, and player empowerment in these industries.
New technologies often develop alongside existing technologies, and we’re expecting the most exciting leaps forward in the coming years. Whether you’re a gamer, a developer, or someone who is simply curious about the potential of blockchain in the gaming realm, there is no better time to understand blockchain gaming than now. So what are you waiting for? Explore blockchain games today and get a glimpse of the future of gaming.
