Were you aware that the amount of gaming activity on blockchain increased by 2000% in 2022 over 2021? Despite facing difficult macro and microeconomic conditions, blockchain development technology in gaming is a reliable asset that has attracted more than $2.5 billion in funding from venture capitalists and other international investors.
Additionally, the metaverse environment has given games additional chances to shine in the blockchain cosmos, and development efforts for gaming dApps are still expanding.
A number of financial firms have also calculated that the quickly developing decentralized metaverse has the potential to lead the $8 trillion industry. The key element propelling this kind of industry expansion is the incorporation of blockchain technology into gaming applications.
The aforementioned research, “DappRadar x BGA Games Report—Q1 2022,” states that in March 2022, over 1.22 million unique active wallets (UAW) were drawn to blockchain games, accounting for 52% of all activity within the ecosystem.
The concept of storing significant in-game assets on a blockchain development company captivates people. After players obtain these assets, they can exchange them for money, and game app development companies can create robust frameworks that other developers can build upon. Though this industry is still in its infancy and presents unique challenges, these concepts look fascinating.
In this post, we’ll explain everything there is to know about the gaming industry’s use of blockchain technology. But first, let’s define blockchain and discuss its applications in the gaming sector before getting into further depth about the same.
How is blockchain applied in gaming, and what does it mean?
Blockchain is a decentralized digital ledger that keeps records and permits safe transactions. Businesses and gamers alike can enjoy a whole new gaming experience when they utilize NFTs and cryptocurrencies to buy in-game items that can be swapped for real money. For example, millions of players worldwide utilize Ethereum-based currency in Axie Infinity.
Cryptocurrency’s place in gaming
As cryptocurrencies have grown in prominence in the gaming sector, they have also changed. Cryptocurrency is a type of digital money that uses encryption to protect, confirm, and ease transactions. Bypassing conventional payment networks like banks and credit card providers enables consumers to make payments online.
Cryptocurrencies, like Ethereum and Bitcoin, allow for quick and safe payments for various in-game items, including themes, avatars, power-ups, exclusive artifacts, and more. While playing games, users can also win incentives or gaming cryptocurrency tokens. With the popularity of cryptocurrency and blockchain games growing, the gaming industry is utilizing blockchain technology in a number of ways, such as
The blockchain-based proof of ownership for non-fungible tokens, or NFTs, establishes their ownership beyond a reasonable doubt. NFTs can now be in any format, including but not limited to memes, movies, GIFs, photos, and other digital assets, thanks to Web3 and blockchain technology in gaming. Gamers can now actually own their digital goods thanks to NFTs. Due to the lack of a middleman—such as another player—players have more influence over what happens to these items and can trade or sell them more easily.
Play and win
With blockchain, a brand-new subgenre known as “Crypto-Games” has emerged. Because they let users earn cryptocurrency (also known as digital currency) through gameplay, cryptocurrency games are distinct from regular games. These games’ cryptocurrency can be exchanged for real money or used to purchase new in-game items. How, then, does this operate?
You receive a prize when you play a cryptocurrency game that can be used in “the real world” or outside of the game. By offering players a Bitcoin incentive that they can exchange for actual products and services, the goal is to keep them playing.
Virtual competitions and events
A vital part of the gaming industry as a whole is online competitions and events. Virtual tournaments have been held worldwide for decades, requiring a lot of resources to manage teams, prize pools, and event locations. However, this process has had numerous difficulties, including expensive registration fees, ticket costs, bandwidth issues, cybersecurity issues, etc. It is also difficult to confirm the rewards that participants receive.
Blockchain technology can streamline this process by enabling the capacity to track and validate who has received awards for their matches or competition victories. Blockchain technology automatically monitors data from any network where it is applied. It is decentralized, secure for user transactions, and delivers these features. Therefore, blockchain technology makes it simple for players to take part in online competitions and events.
A Newzoo analysis projects that by 2023, in-game purchases will increase income on mobile platforms by 9.6%.
How is blockchain technology changing the gaming industry?
Although blockchain technology has been around for a while, its potential to revolutionize a number of industries has recently garnered increasing attention. Owing to its advantages across various industries, it has become the industry standard for the gaming business in recent years.
The following are some advantages of blockchain technology that are reshaping the gaming market and fostering the development of blockchain games:
Transparent and safe transactions
Blockchain technology ensures that there is no fraud or double-spend in transaction records because it is transparent, secure, and unchangeable. It gives players more confidence while transacting digitally and is perfect for games. Where players exchange virtual goods or sensitive data, like NFTs.
Blockchain can prevent sensitive data from being altered or hacked since it adds an extra layer of security through the use of encryption technologies like secure messaging and two-factor authentication. This includes player and game data, as well as user transactions.
A better experience for users
Blockchain offers a more effective, safe, and transparent method of conducting digital transactions and gaining access to virtual assets, which can enhance the user experience overall.
Users now have greater control over their gaming experience thanks to blockchain gaming. This trend has shown itself in a number of ways, including letting users design their own narratives, characters, and gameplay. They can also download multiple video games in different versions from any location without having to worry about their gaming experience being compromised.
A blockchain-based gaming platform aids in guaranteeing the legitimacy and verification of all exchanges and transactions between various parties. This aids in the prevention of fraud, one of the most prevalent issues with contemporary gaming platforms. Because every transaction is recorded, businesses may use blockchain to authenticate transactions and ensure that no party has been paid twice for the same goods or services.
Exchange of resources
Players using blockchain gaming can exchange their goods for cash or other resources. Players can trade with total confidence, knowing that their goods won’t be taken or copied because blockchain records everything and its owner. Thanks to it, they can purchase or sell in-game items to other players.
By finishing tasks and missions, players can receive prizes in the form of cryptocurrency. Players in conventional games receive points as rewards, which are worthless outside of the game. However, individuals can earn cryptocurrency through blockchain-based games, which they can use to buy real money from other players or even e-commerce websites.
Establishing integrated profiles for gaming
Given that blockchain games are currently all the rage, it is feasible to establish a central community where members may access a variety of games. It improves the user experience and makes it simpler for consumers to access various games and make purchases by enabling them to have a single profile that they can use on several platforms.
Blockchain games have taken over the whole gaming market compared to traditional gaming. The use of blockchain technology in gaming has numerous advantages, but it also has certain drawbacks.
Blockchain technology’s limitations in gaming
However, the application of blockchain technology has brought about new difficulties as well as opportunities for a range of enterprises, including:
The gameplay mechanics of cryptocurrency games are more challenging than their plots. The first step in starting a game is for the player to create a user account, which is simple. Then, depending on the kind of blockchain game, the player must purchase a specified quantity of cryptocurrency and set up a cryptocurrency wallet, which makes the work difficult.
The regulatory authorities are still figuring out how cryptocurrencies like MANA, Theta, and others work and whether or not they should be used in blockchain gaming, so using them presents a hurdle.
There is fierce competition in the gaming industry, and new games and platforms are developed on a regular basis. As a result, games built on blockchain may be challenging to compete with more established games.
The industry has produced a large number of games built on the Blockchain. Now that you know blockchain technology’s advantages and restrictions. Allow us to present some actual instances of the best blockchain games.
How do blockchain games work? Here are a few examples from actual life
Simply put, blockchain games are video games developed on the blockchain. To put it another way, the entire network of systems involved in the game owns a copy of it. They let gamers transact with other players online for cryptocurrencies, NFTs, or other blockchain components. There are many blockchain and cryptocurrency games available on the market; some of the more well-known ones are as follows:
CrytoKittes is one example of cryptocurrency video game replication. Released in November 2017, this is among the first initiatives worldwide to introduce a game based on blockchain technology. It is currently among the most well-liked Ethereum-based games. The primary goal of the game is to breed fresh kittens with distinctive characteristics in order to increase their value.
Gamers have the option to either store their cats until they gain value or trade them on a public market. Genes expressing different features, such as hair patterns, eye shapes, mouth shapes, base colors, and accessory colors, determine each cat’s unique personality.
The first word that springs to mind when discussing blockchain in gaming is decentralization. The virtual reality platform Decentraland uses blockchain technology to create a decentralized virtual environment. Users of the platform can produce, consume, and profit from applications and content.
Within the virtual world of Decentraland, people are free to go around, investigate, and purchase a variety of other users’ properties. Even paying to play games, take part in space adventures, go into clubs, and experience all that builders throughout the world could ever want is an option for them.
The ownership tracking of the cards in the collectible card game Gods Unchained is done via Ethereum. God’s Unchained Cards are exclusive and priceless digital artifacts that cannot be duplicated or altered without the owner’s consent.
Additionally, players can exchange God’s Unchained cards directly with one another without using the game’s marketplace. The Ethereum blockchain safeguards the cards, keeping hackers away from them.
The Final Will and Testament
In the blockchain-based game The Last Will, gamers can inherit the digital possessions of other players. Users can create trusts, appoint executors, and make wills in this Ethereum blockchain-based game.
FIFAcoins4Sale is another excellent illustration of blockchain technology in games. It is an online store where customers can purchase and trade in-game stuff for the well-known football video game FIFA. By using a decentralized marketplace, the website lets consumers purchase FIFA currencies without having to worry about fraud or scams.
Other well-known cryptocurrency games across the globe include Age of Rust, Axle Infinity, Illuvium, The SandBox, and Mirandus. Some of the greatest cryptocurrency games that have revolutionized the field of blockchain-based gaming and given users greater control over their in-game assets are listed below.
We’ve covered a few actual instances of blockchain applications in the gaming sector. It is evident that blockchain technology and the gaming business work in tandem to enhance the user experience. Increase transaction security and transparency, and provide novel approaches to digital asset storage.
Blockchain’s future in the gaming sector
Blockchain’s prospects in the gaming sector are promising. We should anticipate seeing more blockchain-based games and platforms in the future as more companies investigate this technology.
According to sources, a Web3 game development company is the gaming ecosystem’s ultimate destiny. Allowing users control of gaming assets and decision-making authority further delegated away from a single central authority.
Large bets are currently being placed on Web3 gambling. According to a recent Dappradar report, $748 million was invested in August 2022 to create new Web3 cryptocurrency games. As a result, we can easily forecast how web3 gaming will affect the future.
It’s critical to realize that Web3 won’t actually have an impact on game quality. It will create additional avenues for incorporating financial systems into the game. The gaming industry will soar to new heights thanks to the underlying blockchain technology and gaming cryptocurrencies for secure payment systems and digital asset ownership.
It is, therefore, imperative for brands to provide fresh and improved gaming scenarios for a variety of gaming platform types and provide their gamers with NFTs that stand out from the competition and can boost trade and interoperability. They must understand that bringing in new cryptocurrency games with strong gaming wallets will provide industry players with greater control over their digital personas and empower them.