How Blockchain Technology Can Redefine The Gaming Industry?

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 Gaming has come a long but slow way over the past 70 years. The world has moved from low-end, 1970s 2D arcade games like space invaders, death race, pong, computer space, etc., to top high-end graphics expressions on PlayStation5 and Xbox Series X.  

Consequently, the companies and technologies responsible for these video games have improved over the years. The technological developments have been responsible for the continuous traction-gain in the 21st century, growing the gaming industry to a $151 billion valuation in 2019.  

However, when it seems like growth is slowing down for gaming technologies, Blockchain comes to the rescue. With Blockchain technology in the gaming industry, we’re witnessing the birth of new systems and processes. These new systems are mitigating the limitations of the previous conventional gaming ecosystem.  

But, if you are not a gaming industry expert, it may be hard to track the transformations Blockchain is causing. Hence, this article needs to explore the exceptional benefits of Blockchain video gaming 

Does The Conventional Gaming Industry Need Transformation? 

For context, ‘conventional gaming’ in this article refers to games that don’t use Blockchain. These are video games we are all already used to, either console or mobile. The term, for this writing, also alludes to infrastructures like PlayStation and Xbox.  

The conventional gaming industry can be deemed successful. Generating millions of dollars in revenue for development companies, creating a whole ecosystem of brand endorsements, competitions, and incredible fandoms. However, once a company can get it right with gameplay, there’s a considerable chance of success.  

Why then was a revolution necessary? Why is blockchain online gaming deemed to be the future?  

The answer to this question has its roots in the history of blockchain and the need for adoption drivers. Since its creation in 2009, blockchain technology has promised disruption to industries. Starting with finance, the world soon realized how powerful blockchain technology is. 

Through innovations like Bitcoin, Ethereum, Ripple, etc., the world got new ways to perform financial transactions. These new means of transactions relegated the need for central authorities like central banks.  

However, the several years that followed the launch of bitcoin opened experts and enthusiasts up to understanding and identifying that there’s more to blockchain’s use than cryptocurrencies. But being a new, somewhat complex technology, maximizing the technology’s benefits isn’t easy.   

So to mitigate this adoption problem, experts thought of gamification. ExTheyelieve blockchain video gaming will help people understand the technology’s concepts better. Now, about 41 million blockchain gamers own crypto.  

While the initial intent of introducing blockchain to gaming was to aid the technology’s adoption, the game industry also benefits from the relationship. Blockchain technology is the transformation the gaming industry didn’t know it needed.  

What Are Blockchain Games?  

Any game that uses blockchain technology in any part of its operations is a blockchain-based gaming platform. For some games, the entire experience is built on blockchain. For others, blockchain is only responsible for their in-game economy.  

Blockchain games are also called NFT or Crypto games. These games are designed to leverage cryptocurrencies’ underlying technology in promoting ownership for gamers. Through this technology, players get ownership of digital assets. In some cases, gamers can also partake in governance.   

All old and upcoming blockchain gaming projects feature experiences riding on blockchain concepts. Examples of these are; 

  • Decentralization 
  • Digital ownership transfer 
  • Immutability 
  • Trustlessness 
  • Security 
  • Scarcity 
  • Smart contracts, etc.  

So far, through blockchain technology, gaming has been able to report new concepts like play-to-earn, yield farming, staking, trading of in-game assets, etc. These blockchain-powered processes are the new frontier of the gaming industry.  

Blockchain Is Transforming Gaming: The Role Of NFTS 

The presence of blockchain in esports and other online video games has created new economies. Thanks to the new economy, players now earn rewards for the effort put into games. This is called play-to-earn gaming.  

Play-to-earn games have always existed. However, play-to-earn in conventional games doesn’t translate to real-world value. The assets players accumulate in such games can’t be transferred out. Such assets belong to the proprietary company. So, even if a player spends to invest in purchasing in-game assets, everything essentially belongs to the developer.  

But, the advent and growth of NFTs have caused a change. Now, players can earn transferable in-game assets from blockchain games. Every asset in blockchain games is NFTs. Once a player earns assets, they are attached to the gamer’s wallet address. Hence, players can decide to trade their assets for fiat currencies on exchanges like Binance, Coinbase, etc.  

Any NFT in a blockchain-based gaming platform is one-of-a-kind. It can’t be forged and can be transferred on the blockchain from one wallet address to another. They hold and permit the transfer of value.   

These NFT assets, in the gaming context, can be game characters, swords, boosts, XPs, staff, potions, etc. Furthermore, being NFTs, these assets are designed to be scarce. Therefore, the scarcity of NFTs translates to the projected value, which benefits players.  

The NFT assets’ value can also be due to their history in blockchain online gaming. For instance, if an outstanding player used a character for incredible in-game exploits, such history remains with the character. So, even if the player sells the character, the new owner inherits the knowledge.  

One other exciting attribute of NFT characters is that they continue to exist, even if the original game they were created for stops existing. These NFTs are independent entities existing on the blockchain. You can send them from one crypto game to another because they are directly attached to your wallet address (upon ownership).   

NFTs are what make blockchain video gaming truly work.  

More Ways Blockchain Is Transforming The Gaming Industry 

So much remains to be known about how blockchain will transform gaming. But current developments have birthed different levels of change.  

  • The first level is ownership over digital assets. 
  • The median level is ownership and economic distribution 
  • The maximum level is complete decentralized governance.  

Through NFTs, more people have been able to make money from gaming. So, unlike conventional games where only the developer benefits, blockchain games also help players make money.  

However, beyond the financial revolution, blockchain is transforming gaming in the following ways:  

Interoperability 

Blockchains allow for interoperability. This means features from one crypto app can be incorporated into another app. This advanced, trustless, open-source interaction between apps improves the experience for players. Interoperability also works for players, such that they can take assets from one game to another.  

Security 

Thanks to blockchain’s decentralization, security is enhanced. The data storage on blockchain networks is distributed on different computer servers. Hence, all data on the blockchain is replicated on all computers on the network. So, it’s impossible to change or alter data on all the servers simultaneously.  

Governance 

Each blockchain-based gaming platform has its token. When players buy or own such tokens, they can decide to stake them for governance stakes. When you stake tokens, you become a part of community members able to suggest and vote for changes for a game.  

Conclusion 

The best blockchain for gaming is Ethereum. However, others like Solana, Polkadot, etc., are introducing outstanding features that are changing the game. For instance, CoinFantasy, the best blockchain esports platform, has exciting features for players.  

Globally, from what we’ve seen so far, the world is on course for better gaming experiences.  

Frequently Asked Questions 

1. How is the Gaming Industry Evolving?  

The gaming industry is leveraging blockchain technology to deliver a rich, inclusive, and profitable experience for players. Unlike conventional games where only the developers get to make money from games, blockchain gaming makes it possible for gamers to earn some money. 

2. What Games Use Blockchain?  

There are different blockchain games out there right now. However, not all of them are popular. The most popular blockchain games are; Cryptokitties, Axie infinity, CoinFantasy, etc. These blockchain games make it possible for gamers to make money. The process by which players make money is called play-to-earn. 

3. Why is Blockchain Good for Gaming?  

Blockchain is good for gaming because it introduces better experiences. In addition, it helps players make money. Blockchain also improves the security of games. However, the most important uses of blockchain in gaming are ownership and governance. Now, players can own digital assets for real and govern games they love. 

4. How is Blockchain used in gaming?  

Blockchain is used differently in varying games. For example, some games build their entire games on the blockchain. Others, however, only use blockchain for the in-game economy. Either way, blockchain facilitates ownership, governance, interoperability, and better security. However, due to the presence of blockchain, players may need to buy into games.  

5. How many blockchain games exist?  

There are over 400 blockchain games in existence. These games exist in different gameplays. As a result, blockchain has been able to find use in various games. Now, we have blockchain esports platforms, fantasy games, video games, etc. Hence, choosing the best game depends on what experience you crave.   

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