How Blockchain Could Revolutionize the Gaming Industry
Can blockchain reshape the digital gaming experience, affecting both players and developers? Is it possible for game developers to incorporate blockchain into existing genres and titles? Let us investigate.
Over a decade, the gaming industry has seen a lot of innovation, from the widespread use of microtransactions to virtual and augmented reality advancements.
Blockchain has become a pillar for both current and future development in various industries, including gaming.
The current state of the gaming industry
The vast majority of online games use a centralized model—all related data stored on a server that the game administrators have complete control over.
Typically, the data contains account information and server history, which records and stores all events and in-game assets.
Players do not have actual ownership of their accounts or items because a single company owns the database.
In other words, game companies wield enormous Power.
What advantages does blockchain have for the gaming industry?
Let’s take a look at some of the ways blockchain technology is currently transforming the gaming industry:
- Ownership of Assets
Blockchain can help to simplify and secure the ownership of in-game items, which is one of the most common NFT applications today. Represent Each asset by a unique, non-fungible token (NFT), such as the ERC-721 tokens. Whatever asset type they are, they can all link to blockchain tokens managed by a distributed network.
Within games, developers can create self-contained economic systems. Because the structure is decentralized, transparency would be advantageous.
- Returning Power to the people
The inclusion of blockchain technology will make the gaming industry more democratic. Developers make decisions that players find appealing by introducing voting rights based on the number of tokens.
- Payments Streamlining
Using the blockchain instead of centralized servers can reduce transaction time and cost.
Blockchain gaming limitations
Building and maintaining a blockchain game is more accessible said than done. Let us also discuss some of the blockchain’s limitations in gaming.
Because centralized networks are much faster than blockchains, scalability is one of the most significant limitations of blockchain.
Because of scalability issues, demand for blockchain games is significantly lower than for traditional counterparts.
Decentralized blockchain games are not always available. To distribute tokens in some games, use a centralized server.
When it comes to maintaining a blockchain, developers frequently struggle to raise funds.
Because of their small size, blockchain game developers find it challenging to compete with major centralized game developers.
Blockchain-based online multiplayer games have successfully harnessed the Power of distributed storage technology as the underlying infrastructure. It not only ensures that different in-game assets are unique but it also maintains a value proposition.
CryptoKitties is one of the most successful examples of modern-day blockchain gaming. CryptoKitties, which debuted in 2017, allows players to buy, breed, improve and trade virtual kittens on the Ethereum blockchain.
CryptoBots is yet another multiplayer online game in which you can buy robots and upgrade their abilities to compete against other players.
In the case of CryptoKitties, you can make one-of-a-kind virtual kittens. Similarly, you can create robots with unique skills and abilities using CryptoBots.
In the gaming industry, blockchain is typically used in two ways:
- The blockchain underpins the entire game. Instead of relying on centralized servers, the developer can run the game on the blockchain.
- The game may run on a centralized server, but a blockchain-based platform will manage the tokens, digital currencies, and collectibles.
Taurion, a game built on the XAYA blockchain, is an example of the first type. The entire game is based on the XAYA and does not rely on centralized servers.
To summarise, running a massively multiplayer online role-playing game (MMORPG) on a blockchain assists developers and players in overcoming the numerous limitations of a centralized server.
More crypto market participants are likely to create gaming-centric blockchains in the future.
Blockchain has the potential to rebuild the gaming world as we know it, putting an end to the monopolistic reign of a few game publishers and developers.
Online gamers prefer digital items sold as in-game tokens to traditional purchases that do not offer a unique value-for-money proposition. Although we may have to wait a few years for blockchain to use in gaming, we can expect a more transparent and secure gaming environment in the future.