The gaming industry is ripe for new changes in the way transactions are made, as well as the power that players have over their in-game currencies. The rise of blockchain technology can provide multiple solutions for the gaming industry, as it can offer gamers a more transparent and decentralized way to engage with games and in-game assets. According to some experts, blockchain technology will change the face of the gaming industry in the near future.
Many game developers are already adopting blockchain with the launch of new dApps, or decentralized applications that use blockchain technology in gaming. Apart from the growth of dApps, the gaming community can look forward to new ways of managing their digital assets in their favorite video games.
Over the past decade, the gaming industry has been revolutionized by various new technologies, including Artificial Intelligence (AI), Virtual Reality (VR) and Augmented Reality (AR), all of which offer immersive gaming experiences. Blockchain technology is set to become the next big thing in the industry and may cause huge disruptions in the way developers and gamers interact and access their games and the digital assets attached to the games.
Though the future is bright for blockchain adoption in video games, there are many challenges that developers must tackle before they are able to roll out new systems and new ways of gaming to the community. Still, here are some of the benefits that blockchain can offer for gamers.
First of all, blockchain technology can provide higher security for video games. As a distributed ledger, blockchain can prevent illegal trading of digital assets online as well as in black markets. The distributed ledger can deter hackers from stealing information through the workings of an immutable ledger, meaning that information on the ledger may not be duplicated or amended retroactively.
From the old days of gamers paying high prices for in-game items, only to find out that illegal copies have made it worthless or that they had purchased an illegal copy themselves, blockchain can offer true ownership of digital assets through a distributed ledger. Moreover, with the introduction of smart contracts, players can be more confident in making transactions, as they will be certain that they are getting authentic gaming items that have not been duplicated.
Transactions made in video games are estimated to be worth as much as $50 billion and rising, and blockchain has the opportunity to play a huge role in the industry’s growth in the near future.
Another benefit of blockchain technology is the power that it grants to gamers, which allows them to assume full control over their virtual assets. Traditionally, in-game assets are kept in servers that may be exposed to the risk of being duplicated, and players do not truly own their virtual assets, which means they cannot trade these assets outside of the video game.
However, with blockchain technology, virtual assets can be easily traded due to a decentralized system that enables users to connect to each other in a P2P manner, eliminating the need of centralized servers. In the near future, players will be able to trade their virtual assets between different games, opening up opportunities for better gaming experiences.
Ultimately, blockchain technology can help players in the gaming industry make payments with ease, even for smaller transactions, as blockchain can enable transactions to be made without the involvement of credit cards or debit systems, driving down expensive fees incurred by gamers.
Nano-payments will also become the new norm with the adoption of blockchain, and developers will be able to process these payments immediately, providing more convenience to gamers.
For the gaming industry, cryptocurrencies will make in-app payments much easier, as the payments can be directly sent from users to game developers. Blockchain has proven its usefulness in cutting out middlemen for payments and offering more transparency in other industries, with video games on the cusp of adoption.
To fully allow gamers to enjoy the advantages of blockchain, challenges that may prevent the adoption of this technology must first be addressed. One of the key challenges is the limitations of games that may be developed on the blockchain network. DappRadar — a tool to assess the growth of dApps on Ethereum — shows that most gamers have yet to realize the benefits of blockchain games and digital asset exchanges.
Another problem with the adoption of blockchain in the gaming industry is that network speeds are not fast enough, and for this reason, many blockchain games have become iterations of mobile games. Game developers are aware of this obstacle, and projects are being carried out to fix the problem. For example, Decentraland is a virtual reality platform with the goal of developing more attractive blockchain-based games.
These existing challenges are meant to be fixed, and developers are working hard towards applying blockchain technology and cryptocurrency in the gaming industry. Scalability issues must also be addressed so that blockchain for gaming can become more widely adopted and revolutionize the gaming community worldwide.
About Asia Blockchain Review
Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.
Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.
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