How is Blockchain transforming the Gaming Industry?

The game business has come a long way since its humble origins. Those of us who remember playing Super Mario on a 16-bit gaming console are aware of how this once-simple industry has evolved into a treasure trove of emotionally-charged, engaging virtual reality games that reward precision and preparation.

 

Massively multiplayer online games (MMOs) like PlayerUnknown's Battlegrounds (PUBG) need players to live in a fair world because their characters are personalized to their own personalities. Any mistreatment of the character reflects poorly on the gamer. 

 

Characters do not perish in the same way as Mario does, and they do not follow a distant goal like a princess in a castle. These games involve a lot of emotional implications and are based on real-life situations.

 

The majority of these games are streamed online, and players employ virtual assets to fulfill specific goals and prove their dominance. Gaming is gradually gaining traction as a global sport. According to a DappRadar and Blockchain Game Alliance report from Q1 2022, the blockchain gaming industry alone grew more than 2000% in past one year.

 

The use of blockchain technology has exploded in recent years, owing to the need for a new system that can replace the problems that exist in the traditional paper money system with something wholly new and revolutionary.

 

Blockchain isn't only about money; it has a wide range of applications, with gaming being one of the most crucial. Why? Because blockchain technology will change the way games are created, managed, and played in the future.

 

When blockchain is utilized for gaming, extraordinary things can happen, as we will describe:

 

Also Read | Impact of Blockchain and Cryptocurrency on Gambling Industry 

 

Blockchain Gaming

 

How is it possible?

 

A blockchain is essentially a chain of data blocks on a computer network that is transparent to all of its users as well as anybody else. It cannot be altered or relocated. This way, a complete record of everything that has transpired on the network in relation to the data is preserved.

 

The system is decentralized, which means that the game is not owned and controlled by a central authority, but rather by the users, who possess digital assets and game objects.

 

You hold a particular amount of digital assets called NFTs on a gaming blockchain, just like you own a certain number of crypto coins, such as Bitcoin, Ethereum, or Litecoin, on a cryptocurrency blockchain. 

 

These are game objects, but you own them in the same way that you would cryptocurrency, and they are transferable not only to a wallet but also outside of the game.

 

Also Read | What is the Future of Cryptocurrency?

 

The Role of NFTs

 

NFTs are one-of-a-kind, unforgeable, and may be transmitted to a wallet address much like currencies. An NFT in a game can be a sword, a bow, a shield, a staff, or a portion, for example. These are merely metaphors, so they could be anything. Such digital assets can be yours indefinitely if you own them.

 

There's also the aspect of scarcity that comes with blockchain technology, implying that only a limited quantity of these products are available.

 

Just as in an online RPG game like World of Warcraft or another comparable title, there are things in the game that are common, special, uncommon, epic, and legendary. The legendary items are the rarest.

 

In a blockchain-based game, you can see how many legendary items are available in the game, such as 35. There can be no more of this type of item after this amount has been established. Even if these 35 items are identical, each one is distinct in its own way since it might include the entire history of how that item has been used.

 

It might be owned by the game's finest player, and this knowledge will always remain with the item, even if it is purchased by someone else.

 

But what if the game you're playing suddenly stops working? What's more, guess what? Your item, on the other hand, will not! Because it can be transferred from one blockchain to another in the metaverse. It is still yours to keep and possibly utilize in a new game. It is possible to keep it in your cryptocurrency wallet. This is the charm of NFTs.

 

NFTs are actually a type of content, a type of content that will live on in the metaverse forever.

 

Also Read | Top NFT Games to Explore 

 

Watch this: How Cryptocurrency ACTUALLY works.

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The Gaming Industry is Being Transformed by Blockchain in Several Ways

 

According to experts, because of its liquidity and the fact that gamers are used to tokenization, implementing blockchain in gaming is a piece of cake. 

 

Furthermore, because many games allow users to buy in-game items with both virtual and real money, experts agree that blockchain would be the best way to keep track of these transactions.

 

Blockchain technology is thought to have a positive interaction between cryptocurrency and video games. Blockchain addresses a number of long-standing challenges in the gaming business.

 

1. Increasing the security of the gaming market

 

Hackers will find it nearly impossible to break into data across the server because of blockchain's strength of decentralization and highly effective data encryption measures.

 

As a result, it creates a secure environment for both game entrepreneurs and developers, resulting in increased productivity. Hackers would be unable to knock down a decentralized blockchain network since there are no servers to damage.

 

Also Read | Game Development Companies Integrating AI Research

 

 

2. Enhancing the ownership of In-Game Assets

 

By introducing more transparency and legislation to the gaming business, blockchain technology can also help with in-game asset ownership. Actual digital ownership, which will allow players to exchange scarce goods and profit, is one of the most important elements of blockchain-supported gaming. 

 

In a blockchain-based game, smart contracts are utilized to handle all transactions. Smart contracts run on pre-programmed parameters and are irreversible. As a result, when you launch a blockchain-based game, all in-game assets purchased using smart contracts are promptly transferred to players' public address accounts.

 

Aside from that, smart contracts are operated without the involvement of a central authority. No one can change the public address where the in-game assets are stored, and no one can replace the ownership of those assets in private. They will remain the property of the game player who owns them.

 

Also Read | Centralized and Decentralized Cryptocurrency Exchanges 

 

 

3. Enhancing the value projection of intangible assets

 

After Crypto Kitties was released on November 28th, 2017, players had invested approximately $6.7 million by December 6th. When an exciting game is created on the blockchain, players will prioritize intangible digital collectibles, according to these statistics.

 

Players will be willing to place real value on intangible digital collectibles if you construct an interesting blockchain game. The combination of cryptocurrency and interesting and pleasant video games is certain to result in a boom in investment.

 

4. Control Over Favorite Video Games

 

Gaming networks built on the blockchain aren't mutable. This guarantees that network-deployed game programs and their series will not change in the future. This enables you to download and install video games in various versions from any location without jeopardizing your gaming experience.

 

Also Read | Best Programming Languages for Game Development 

 

 

5. Trading resources and earning rewards

 

Gamers and developers can leverage blockchain technology to construct resource-rich games and apps, as well as upgrade game versions and earn awards through blockchain gaming mining procedures. This allows them to collaborate and get tokens while creating an immersive user experience on the app.

 

 

6. Improving payment methods

 

Cryptocurrencies are extremely secure and private. In the gaming business, there have already been multiple incidents of major networks being breached, with customers' credit card information being released online and sold on black markets.

 

In blockchain gaming applications, local crypto tokens or other similar tokens are used to make payments, resulting in a better transaction experience. The collaboration of cryptocurrency with video games in this way can improve payment possibilities for gamers.

 

Collaborations with crypto firms like Twitch and Stream may be dated back several years in the history of cryptocurrency and video games. Twitch and Steam are two of the most well-known names in gaming, and the fact that they're experimenting with cryptocurrency payments could indicate that there's a future for combining cryptocurrencies with video games.

 

7. Integrated Gaming Profiles

 

Most gaming platforms require users to create a gaming profile before they may access the platform's games and other features. Blockchain gaming app users, on the other hand, can create a single, integrated gaming profile that can be accessed and run across numerous gaming portals.

 

Blockchain gaming app users can create a single, integrated gaming profile that can be viewed and used across numerous gaming portals. This method improves the user experience for gamers by making interlinking activities in programs more accessible.

 

Also Read | Types of Block in a Blockchain Network 

 

Watch this: Blockchain Games - Can Blockchain Technology be a Game Mechanic?

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Bottom Line

 

We can now see how combining cryptocurrencies with video games can result in a more enjoyable, secure, and smooth gaming experience. The cryptocurrency gaming business is still in its infancy. This assures that users will be able to try new games in the coming years.

 

Customers have never been let down by the gaming business. While the internet helped the gaming industry advance, it couldn't keep crooked individuals and unethical players out.

 

Fortunately, blockchain-based gaming is the next step in protecting video games and establishing an industry standard for the long term. As a result, cryptocurrencies and video games have the potential to change the whole gaming business in a variety of ways.