Acutely aware of the widespread adoption of blockchain technology across various industries in recent years, the gaming industry is also exploring how this nascent technology can be implemented to create more engaging user experiences. The gaming industry is worth about $108 billion today, growing from $70 billion just a few years ago. It’s an exciting time for gamers, developers and everyone else who thrives on this fast-growing market. This article explores exactly what blockchain games are and how they are different from traditional video games. We also look at how blockchain is changing the gaming industry by introducing new business models, monetization strategies and player interactions. Let’s get started.
What’s a Blockchain Game?
A blockchain game is any game that uses blockchain technology. This can be in any capacity — from the game being built on blockchain tech, to a game that uses in-game assets or currencies on the blockchain. To better understand blockchain games, we need to look at how traditional games are built. Most games are centralized systems owned and operated by a single company. All the data generated by users and gameplay is stored on a single server controlled by the game developer. Typically, players are required to create an account on the developer’s platform and establish trust by sharing personal information, such as their email address and credit card details. The game developer uses this information to monetize the user base by selling in-game items, subscriptions or completing micro-tasks.
How is Blockchain Changing the Gaming Industry?
The gaming industry is one of the most lucrative markets in the world. It’s estimated that by 2021 the industry will be worth $138 billion. The rapid growth is attributed to the increase in the number of gamers, growing from 2.3 billion in 2017 to 2.6 billion in 2021. This year is also expected to see a rise in the number of people spending on gaming, increasing from $108 billion in 2018 to $138 billion in 2021. In fact, the gaming industry has grown at a faster rate than the global GDP since 2009. To capitalize on this rapid growth, game developers are exploring ways to harness blockchain technology and bring more value to their products. Here are a few ways blockchain is changing the gaming industry:
- Better Gameplay – Gamers can now own their in-game assets, earn real money when playing, and create their own gaming communities.
- New Monetization Strategies – Blockchain has enabled game developers to create new monetization strategies that remove the need to rely on advertising or pay-to-win models.
- More Trustworthy Games – Blockchain provides a trustless environment where every player is given a verifiable identity. Developers can also use blockchain to store game data, which makes games more trustworthy.
- Better User Experiences – Blockchain can be used to create more engaging user experiences by enabling developers to design a wide range of decentralized apps.
Benefits of Blockchain for Games
Now that we know what blockchain games are, let’s look at the ways blockchain technology can benefit the gaming industry and create better player experiences.
- Real-world Assets – Players can own real-world assets, such as virtual weapons, cars, or real estate. They can also earn real money through gamification and monetization strategies.
- Transparency – Blockchain enables the complete transparency of all game activities, including the flow of assets and gold.
- Security and Trust – Blockchain is built on trust and encryption. It’s a highly secure technology that protects user data and makes gaming trustworthy.
- Ease of Use – With the growing adoption of cryptocurrencies, blockchain is becoming easier to use by the day. Developers can also choose to let their users mine tokens to earn coins in the game.
Real-world Assets on the blockchain
One of the biggest challenges of using blockchain in the gaming industry is the adoption of non-fungible tokens (NFTs). NFTs are unique digital items that can be traded on blockchain. This is how blockchain-based games such as CryptoKitties work. However, real-world assets, such as rare collectibles, artwork, and property, can also be stored on blockchain, making them tradeable and fungible. Rare Pepe Wallet allows users to collect and trade rare Pepes, which can be sent as a message or traded on the market.
Blockchain-based Game Currencies
One of the most exciting ways that blockchain can be used in the gaming industry is to create blockchain-based game currencies. Blockchain-based game currencies can be used in a number of games, including MMORPGs (Massive multiplayer online role-playing games). In blockchain-based games, game currencies are stored on the blockchain and managed by smart contracts. This makes them trustless and decentralized, which removes any need for a third-party verification.
Conclusion
The gaming industry is very exciting and rewarding. According to Statista, the global gaming industry generated $108 billion in revenue in 2018, and the forecasts suggest that the industry will only grow from here. This means that people who are passionate about gaming have many opportunities for growth in the coming years. However, gaming has come a long way since its conception. From simple board games to online role-playing games, the industry has evolved over time to keep up with the changing needs and demands of its players. Now, the industry is undergoing another transformation thanks to blockchain technology. Blockchain will enable game developers to create unique gaming experiences that have never been seen before. In the coming years, we can expect to see a lot of interesting blockchain games.
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