Blockchain technology has been successful in creating a buzz all around the world. It occupies its territory in multiple sectors, from finance to healthcare to any business. This technology is also revolutionizing the gaming industry. Since its birth, the blockchain gaming industry grew to $3 billion in 2021. And it is expected to hit $39.7 billion in the coming three years. The blockchain gaming industry has been successful in attracting 1.5 million gamers in recent years. And as it is associated with NFT, gamers across the globe have been relying on this platform.
By relying on the NFT, the blockchain games allow gamers to own their assets. Unlike the previous video games where the gamers had to pay money to play the games, but they could possess no own assets, blockchain, on the other hand, allows the user to have the assets in the form of NFT. Despite the growing possibilities that the blockchain has to offer, it is also true that blockchain games have plenty of challenges to face. And it is expected that this new platform will overcome those challenges to make it an even more reliable platform for gamers all around the world.
What Is Blockchain Gaming?
Blockchain games are built on a blockchain framework. These games are very closely associated with trading, NFTs and ownership capabilities. Ownership capabilities in blockchain gaming mean the gamer can possess various assets of the game that they are playing. Previously, the game developers managed all the assets and currency, but the introduction of blockchain-backed gaming has changed that forever. Blockchain for gaming is more accepted due to its proximity to NFTs and cryptocurrency. The game assets owned by the gamers can be exchanged by using cryptocurrency. So, if a gamer earns the NFT rewards, he is in complete control of his own gaming assets. He can sell or trade those assets whenever he wants to.
How Does NTF Help In Blockchain Gaming?
NFTs have unique wallet addresses like cryptocurrencies. It helps you to verify the ownership of your assets. If a blockchain game provides a certain number of legendary items, you can get them using NFTs. Simply put, NFTs act as money in metaverse that will allow you to trade on the platform.
Blockchain Gaming Is Changing The Gaming Industry
Many games have been designed in blockchain to allow gamers to purchase in-game assets by using NFTs or real money. Blockchain keeps track of the transaction as well. There are numerous ways in which this technology is changing the gaming industry forever.
1. It Ensures the Ownership of In-Game Assets
Blockchain creates transparency while doing any transaction. So, it encourages the gamers to own as many in-game assets as they want. Digital ownership allows gamers to exchange goods, which is one of the most noteworthy features of blockchain gaming.
Blockchain-based games rely on smart contracts to handle all the transactions. As a result, any transaction that happens during the purchasing or selling is directly transferred to the player’s public address account.
2. Blockchain Is Providing The Much Needed Security to The Gaming Market
If you build a blockchain-based game, you cannot centralize it, making it more difficult for hackers to penetrate. It is almost impossible for hackers to get the data by penetrating its highly protected data encryption measures.
It is clear that blockchain for gaming is very secure for gamers. Not just that, Entrepreneurs and developers are trusting this due to its highly rigid decentralized blockchain network.
3. Blockchain Is Icreasing The Value Projection of Intangible Assets
Soon after the release of Crypto Kitties on 28th November 2017, it was said that players invested nearly $6.7 million by 6th December. Due to the security measures that the blockchain has, the players are willing to prioritize their intangible digital collectables. Moreover, they are likely to place real value on intangible digital collectables.
4. Enhances The Value of Intangible Assets
Blockchain technology helps gamers to construct valuable games that are rich in resources. It also allows them to upgrade game versions and earn rewards through blockchain gaming mining procedures.
5. Blockchain Helps to Have Control Over Favourite Video Games
The gaming networks built on blockchain are not mutable, so the network-deployed game programs and their series will never change in the future. This helps the gamers to download any game of any version from any location of their choice without destroying the gamers’ gaming experience.
6. Secured And Protected Payment Methods
In the gaming business, multiple incidents of network breaching have been reported in the past. Customers’ credit card information was hacked and sold on black markets. On the other hand, blockchain provides more security during transactions. The games built on blockchain gaming prototypes use crypto tokens or other similar tokens for payments. And the involvement of cryptocurrency has improved the payment possibilities more than before.
7. Creating Integrated Gaming Profiles
Like most gaming platforms, blockchain also requires gamers to create a gaming profile before accessing its games and features. The users of blockchain-based games can create an integrated gaming profile that different gaming portals can access.
Challenges for Blockchain Gaming
Blockchain for gaming is a widely distributed idea that is creating a big change in the gaming world. However, the growth of adopting this idea is comparatively slow and filled with challenges. One of the most important reasons for this is the lack of knowledge. Most people have a very vague idea about this new technology. And the regulatory framework of the cryptocurrency and NFTs is also one reason why the developers prevent themselves from exploring the blockchain-based games. Therefore, it is fair to say that blockchain technology for gaming is still under development.
Though blockchain-based gaming has great potential, it requires plenty of improvements and changes. However, the concept has fascinated a good portion of developers, and many of them are closely working on this technology. Looking at the current situation, we can expect the blockchain-based gaming industry to explode in the coming few years.