The recent surge in popularity of blockchain game development can be attributed to the need to replace the flaws that exist in the existing paper money system with something new and revolutionary.
In addition to money, blockchains can be used for various other purposes, including gaming.
What’s the reason? It will revolutionize the future creation, management, and ways of playing games thanks to blockchain technology.
Using blockchain in gaming can lead to incredible things, as we will demonstrate. However, In this blog we will discuss all the aspects of Blockchain in the gaming industry.
What is Blockchain Gaming?
Instead of being controlled by a central authority, the decentralized blockchain system is owned and controlled by its users.
On a gaming blockchain, you own a certain number of digital assets called NFTs, much like on a cryptocurrency blockchain, you own a certain number of crypto coins like Bitcoin, Ethereum, or Litecoin.
In the same way that cryptocurrency is yours to own, these game objects can be moved outside of the game and to a wallet.
Trends in the market of the blockchain gaming industry.
It is estimated that 2.5 billion people will play games on mobile devices by this year, followed by 1.3 billion people who play on PCs, 0.8 billion people who play on consoles, and 2.5 billion people who play on mobile devices.
Image Source – Newzoo
A 5.6% annual growth rate (2015-2023) is expected to push the global market to over 3 billion players by 2023. In addition, let’s take a look at the gaming market during the forecast period.
How Can Blockchain Gaming Help?
Blockchain based platforms and the dynamics of the blockchain gaming industry have specific characteristics, and stakeholders also have specific responsibilities. Consequently, it is one of the fastest growing segments of the global technology sector. This makes it an excellent candidate for disruption as well! The following are listed:
- Popular games require money to play. Most players are not interested in accumulating digital gold because it takes so much time. It is common for players to purchase in-game assets with their fiat money.
- Game entrepreneurs require a safe and secure environment to develop and launch and monetize games.
- In-game currency must be bought and sold securely; hence, safe platforms are needed.
- There are many games that players can play, and they can create profiles on those games. Another area where technology can help is making the profiles interoperable across games.
- We will see more and more real money spent on virtual games as people project value on intangible assets. During this phase, a sector is primed for technological disruption.
How Blockchain Games are Transforming the Gaming Industry? – An in-depth overview
High fees, unsafe data, centralized control, fraudulent activities, and hidden costs are some of the challenges that gamers and blockchain gaming industry developers face.
The blockchain, however, solves many of these problems. Here’s how it works.
1. Game Developers and Entrepreneurs get A Safe & Secure Environment
Crypto token transactions are secured by blockchain gaming platforms using powerful data encryption technologies. Data encryption techniques are almost impossible to hack using the technology we currently use.
Additionally, hackers will not be able to destroy a decentralized blockchain network because there is no single server to attack.
2. Processing Payments at a Low Cost
It is possible to play games anywhere in the world. Games are played between players from different countries. Online gaming usually involves expensive fees for players. Fiat currencies can also be leveraged by players, but the transactions aren’t cost-effective.
The company also needed a solution for transferring assets without having to wait days for payment processing. Payments can be made instantly, regardless of location, across the globe with blockchain technology.
3. Fraudulent Activity Should be Minimised
Online fraud is most prevalent in the blockchain technology gaming industry. A growing number of technical vulnerabilities are being exploited by hackers. Because of this, the industry is always looking for ways to save money.
Fraud can be eradicated and billions of dollars can be saved with blockchain technology.
Create blockchain for smart contracts that work well for your blockchain multiplayer game. Blockchain gaming also benefits from an open ledger of all transactions.
4. Real Ownership of In-Game Assets
A key benefit of blockchain gaming is that players own their assets, unlike non-blockchain games where you do not own your in-game purchases. Smart contracts govern transactions in the blockchain-based game, which makes all the difference.
When the conditions outlined in smart contracts are fulfilled, they are executed automatically and irreversibly. The smart contract players receive their public addresses upon buying in-game assets. The rules of blockchain for smart contracts can be viewed by all players, enabling complete transparency.
5. Keeping Gaming Items Safe and Secure
Hackers love centralized servers, no doubt about it!
There is one stationary target for them, so they can easily hack them. The assets there can be theirs once they’ve broken through the encryption.
However, blockchain technology can change that. Digital collectibles purchased in blockchain-based games can be securely stored in crypto wallets.
As an example, you can secure your in-game assets by storing Bitcoin and Ether in an Enjin wallet, which can be found on the Enjin Coin website.
6. Reduce the Price of Gaming Assets
Games developers may have a limited customer base due to the high prices of gaming items. In the digital market, gamers often seek stolen game items due to price.
Despite this, blockchain facilitates micro-transactions at an affordable price. By reducing the price of their power-ups, developers are able to sell them at a low profit margin. Additionally, online gamers can control how much they spend.
Blockchain Games – The Next Big Thing?
Gaming items and characters can be customized, developed, and personalized using blockchain technology. They can also trade them on the platform and transfer them to other users. Because of this unique feature, blockchain multiplayer games are attracted to it since they can control the assets of the games and play independently.
Blockchain enthusiasts may also find gaming appealing. This trend is exemplified by the high volume of rare and valuable NFTs traded within the gaming industry. Financial technologies will be reliant on blockchain in the future. It is not just bitcoin debates that are driving interest in corruptible ledgers. Blockchain technology is vital to hosting decentralized banking systems, which can be used by game developers who want to add user-friendly features to their games.
How can Blockchain Benefit the Gaming Industry?
Today, blockchain technology is transforming the blockchain gaming industry in a number of ways:
- Ownership of assets
A major NFT use case is securing in-game items with blockchain technology. ERC-721 tokens are non-fungible tokens representing unique assets. A distributed network is able to maintain blockchain tokens for all types of assets.
- A transparent process
A game developer can create a self-sufficient economic system. It would be beneficial to have a level of transparency due to the decentralized structure.
- Restoring the people’s power
Gaming will become more democratic with the inclusion of blockchain. Players will be able to make decisions that hire game developers to introduce voting rights according to the number of tokens.
- Payments that are streamlined
As a final benefit, games can reduce transaction costs and time by using the blockchain in place of centralized servers.
The Importance of NFTs in Blockchain-Based Gaming
A new economy has been created thanks to the presence of blockchain in esports and other online video games. As a result of the new economy, players now earn rewards for the time they put into their games. It is known as a play-to-earn game.
Play-to-earn games have existed for a long time. Nevertheless, play-to-earn in conventional games does not translate to real-world value. A player’s assets cannot be transferred out of such games. The proprietary company owns such assets. Players can invest in buying in-game assets, but everything ultimately belongs to developers.
With the advent and growth of NFTs, however, things have changed. Blockchain games now offer players the opportunity to earn transferable assets within games. NFTs are the only assets in blockchain games.
The Future of Gaming with Blockchain
The answer to this question has its roots in the history of blockchain and the need for adoption drivers. People also ask who developed blockchain technology ‘Satoshi Nakamoto. Since its creation in 2009, blockchain technology has promised disruption to industries. Starting with finance, the world soon realized how powerful blockchain technology is.
There is a lot of potential in blockchain gaming: the global gaming industry is expected to grow from USD 173.70 billion in 2020 to USD 314.40 billion by 2026. Approximately one out of seven people on earth play online games, according to current estimates.
Blockchain Transforming the Gaming Industry in Several Ways
Blockchain is a great fit for gaming because of its liquidity and gamers’ familiarity with tokenization.
The experts agree that blockchain would be the best way to keep track of these transactions since many games allow users to buy in-game items using both virtual and real money.
Cryptocurrency and video games have a positive interaction thanks to blockchain technology. Several challenges in the gaming industry can be addressed with blockchain technology.
- Enhancing Gaming Market Security
As a result of blockchain’s decentralized nature and highly effective encryption measures, hackers will have a difficult time breaking into data across servers.
Consequently, game entrepreneurs and developers are able to work in a secure environment, resulting in higher productivity. There are no servers to damage on a decentralized blockchain network, so hackers cannot take it down.
- In-Game Asset Ownership Enhancement
Blockchain technology can also facilitate in-game asset ownership by introducing more transparency and legislation into the gaming industry. Blockchain-based gaming will allow players to exchange scarce goods and profit through actual digital ownership.
As part of the blockchain-based game, all transactions are handled by smart contracts. The smart contract operates based on preprogrammed parameters and is irreversible. Due to this, all in-game assets purchased via smart contracts are immediately transferred to players’ public address accounts when a blockchain-based game is launched.
Furthermore, smart contracts function without a central authority. In-game assets cannot be changed at their public address, and private ownership of those assets cannot be changed. As long as they are owned by a game player, they will remain their property.
- Enhancing Intangible Asset Value Projections
As of December 6th, 2017, approximately $6.7 million had been invested in Crypto Kitties since the game was released on November 28th, 2017. Intangible digital collectibles will be prioritized by players when an exciting blockchain game is created.
- Video Game Control
Blockchain-based gaming networks cannot be modified. Consequently, network-deployed game series and programs won’t change in the future. Your gaming experience will not be compromised by downloading and installing video games from any location.
- Resources can be Traded and Rewards can be Earned
Blockchain gaming mining procedures enable gamers and developers to build resource-rich games and apps and upgrade game versions. Creating an immersive app experience allows them to collaborate and earn tokens.
The Drawbacks of Blockchain Gaming
It is easier said than done to build and maintain a blockchain game. Also, let’s discuss some of blockchain’s limitations in gaming.
Blockchain’s scalability is limited by the speed of centralized networks.
- The need
Since blockchain games are difficult to scale, their demand is significantly lower than their traditional counterparts.
- Increasing centralization
It is not always the case that blockchain games are decentralized. Tokens are distributed by a centralized server in some games.
- Preventative maintenance
It is often difficult for developers to raise funds to maintain blockchain games.
- Availability of resources
In comparison to major centralized game developers, blockchain game developers face challenges due to small groups.
Cryptocurrencies Can Make In-Game Purchases Easier:
Providing in-platform payments and cryptocurrency purchases to players can benefit you as a game developer. It will be possible for players to purchase game collectibles instantly without having to wait for third-party payment providers to process their fiat currency transactions.
This opportunity is already being noticed by blockchain start-ups. As an example, Enjin provides game developers with the following framework:
- SDKs (software development kits);
- The wallet;
- Plugins for games;
- Payment gateways and other apps for managing virtual items.
The video game industry is also benefiting from blockchain technology. In order to support transactions on their platform, they have developed an ERC20 token called ENJIN Coin. Learn more about Enjin Coin by visiting their website.
Blockchain Provides A Safe And Secure Environment For Game Developers And Entrepreneurs:
Crypto token transactions are secured using highly powerful data encryption technologies such as private key-public key. Using today’s computer technology, these techniques of data encryption are impossible to crack.
A decentralized blockchain network can’t be destroyed by hackers since there’s no one server to destroy. Databases are distributed among nodes, and each node has access to all the information in the database.
The blockchain prevents hackers from altering the transaction history of an existing network, and it prevents ‘Distributed Denial of Service’ attacks against these networks. In order to keep the network secure, blockchain networks use ‘Proof of Work’ (POW) or other consensus algorithms.
Blockchain In Gaming Helps In Securely Buying And Selling In-Game Assets:
The popularity of cryptocurrencies has made it easier for people to buy and sell crypto tokens securely. In-game assets can be bought and sold using digital currencies if your game is built on the blockchain.
Example of Blockchain Games
Blockchain-based gaming still occupies a very niche market compared to traditional gaming. However, there are already hundreds of blockchain games available.
Here are some of the most popular:
One of the first blockchain-based games is CryptoKitties, which was released in November 2017. Among the most popular games built on Ethereum, it has grown to become a rage.
Creating a new generation of cats (digital, of course) with unique traits to maximize their value is the goal of this new, play-to-earn game.
The Upland metaverse game is a property-trading game. Virtual properties are purchased, sold, traded, and built using real-world addresses in Upland. According to Upland, the cities of New York and San Francisco have been mapped.
In Upland, you can earn UPX coins by building properties and becoming a “digital landlord.”
3. Gods Unchained
Ethereum-based blockchain game Gods Unchained uses the same technology.
Play-to-earn opportunities abound in this fantasy trading game. There is no monetary investment required to begin playing this game, so players find it easy to begin.
In this game, $GOD is the token. (Gods Unchained cards) cannot be copied or modified. The Gods Unchained marketplace does not have to be used to trade them.
With Mobox, you can farm both yields and NFTs in a gaming metaverse. Play-to-earn and free-to-play options are available to its players. Using the Binance Smart Chain, this platform combines gaming with decentralized finance (DeFi).
The Cryptopop game may seem familiar to you if you’ve played online games before. Cryptopop is also inspired by Candy Crush, another popular game.
In addition, players make more money by trading with other players on the in-game market. Popcorn and Ether are the main currencies of Cryptopop.
As a result of blockchain technology, the mobile gaming development industry can be rebuilt, and monopolistic practices can be ended.
The value-for-money proposition of digital items sold as in-game tokens tends to be higher than that of traditional purchases. While blockchain might take a few more years to become widely used in gaming, we can expect a more democratic, transparent, and secure environment in the near future. However we provide the best blockchain game development services to our customers. For more information regarding blockchain in the gaming industry contact BR Softech.
Quick Contact Us :
Skype : bdm.br
BR Softech Pvt. Ltd. excels in providing cost-effective IT Solutions. Established in August 2012 with over 10+ years of rich experience. An Apex rated IT serving company around the world. Our team of innovative and creative designers deals in web designing, and mobile game/software development intending to deliver outstanding digital outcomes.