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Blockchain in gaming is the next revolution in the gaming industry. Many users are moving toward gaming blockchain because of its new gaming experience, such as metaverse, crypto coins, NFTs, etc.
Also, many investors and entrepreneurs think it is a good time to invest in publishing their blockchain games. But how does blockchain in gaming work, and what is blockchain? Let’s understand in detail.
What is blockchain?
Blockchain is a decentralized and distributed network that enables multiple functions such as secure transactions, maintaining data records, and offering decentralized computing power and online storage.
Blockchain has brought a new gaming experience for businesses and players who use NFT and Cryptography to purchase in-game assets in exchange for real money.
But what is the role of blockchain in gaming? Let’s check.
Role of blockchain in gaming
First, let us explore more about cryptocurrency. Cryptocurrency is a decentralized digital currency that verifies, secures, and allows digital transactions with cryptography’s help. Players can use cryptocurrencies to make online payments instead of traditional payments like banks and credit cards.
Cryptocurrencies like Bitcoin and Ether enable fast and secure payment for various in-game purchases like digital avatars, weapons, season passes, etc.
However, various blockchain technology is used in gaming Industries, such as
1. NFTs
NFT is a non-fungible token used in blockchain games to trade assets. The assets can be characters, names, videos, etc. Each gaming blockchain can release its own NFTs that players can use in the game. The NFTs allow games to mint their digital assets into blockchain to make them able to trade among the players.
2. Play & earn
Unlike traditional play-to-earn games, blockchain for gaming provides a more advanced way of playing play-to-earn games. Through gaming blockchain, the users can earn cryptocurrencies and NFTs that can later be changed into real money or used to buy new gaming items.
3. Virtual events and tournaments
Blockchain enables excellent management of virtual tournaments such as e-sports and other gaming events with the help of blockchain technology. Blockchain allows tracking and verifying individuals that have received the reward for their matches and other winning competition.
Moreover, the blockchain for gaming provides secure transactions among users that track data from any network, which helps the player participate in virtual events and tournaments by paying through cryptocurrency.
There are multiple ways gaming blockchain has brought considerable changes to the gaming industry.
How is blockchain technology transforming the gaming industry?
Since implementing blockchain technology into the gaming industry, we have seen a significant positive change in different parts of the gaming industry.
Some of the benefits that blockchain has served to game industries are as follows:
1. Secure and transparent transactions
Blockchain for gaming provides secure, transparent, and immutable transactions, helping the gaming industry ensure no double-spending or fraud occurs during transactions between players and blockchain games.
Giving an additional layer of security through blockchain gives users the confidence to share their sensitive data and make payments when purchasing assets through blockchain games.
2. Enhanced security
Blockchain offers multiple layers of security, such as secure messaging and two-factor authentication. Better security helps the user to protect their sensitive data, be it player information, game data, or transaction-related information like wallet addresses.
3. Better user experience
Blockchain games provide a better user experience in terms of security, purchasing digital assets, and earning rewards from play to earn blockchain games.
Also, blockchain provides more user control over the games, allowing players to create their characters, communicate with others, and so on.
4. Users’ verifications
Another positive thing about blockchain games is that all the transactions and interactions among players are verified and secure. With the help of transaction verification, games can minimize the chance of fraud and other transaction errors in the blockchain.
Blockchain ensures that no individual will pay twice for the same service or digital assets as each transaction is recorded in the blockchain node.
5. Trading resources
Blockchain offers multiple digital assets, such as cryptocurrencies & NFTs, giving a better opportunity for players to trade their assets with other players and make profits.
Also, blockchain ensures that there will be no stealing or duplication of trading resources due to the immutable nature of the blockchain.
6. Earning rewards
Like traditional games, blockchain also offers play-to-earn games through which users can earn rewards through cryptocurrency, NFTs, and other digital assets.
Players can convert their rewards into real money by selling them to other players or someone interested in purchasing digital assets for the collections.
7. Creating integrated gaming profiles
Blockchain offers integrated gaming profiles through which users can access different games across multiple platforms with their single gaming profile.
Accessing multiple games with a single user profile enhances the User experience in blockchain gaming.
8. Blockchain helps players securely store in-game assets
Like traditional games, blockchain games also require a safe place where users can store their digital assets, such as NFTs and cryptocurrencies, to keep the assets secure from hackers and scammers. The blockchain offers crypto wallets where players can store their in-game digital assets.
As all the servers in the blockchain are encrypted, immutable, and decentralized, it becomes hard for hackers to locate the players’ assets and steal them.
However, you must know a few limitations of blockchain gaming to try hard to improve that part of your game.
Limitations of blockchain technology in gaming
1. Complexity
Getting started with playing blockchain games is a lengthy process. As blockchain involves NFTs and crypto transactions, there is a need for each player to have their crypto wallet for playing blockchain games.
Players under 18 will have to face a challenge to have their crypto wallet as many crypto exchange platforms restrict the registrations of users that are not adults yet.
2. Regulatory hustles
No perfect solution has been developed to integrate cryptocurrency and other blockchain-related digital assets into the games.
Moreover, many regulatory bodies are still finding a perfect way to know how cryptocurrencies will function in the games, making it a tough challenge for game developers to integrate blockchain technology.
3. Competition
There is already high competition among game developers and organizations to attract a large audience to their platforms, giving a solid challenge to blockchain games to survive in the market.
Also, many players don’t know about blockchain, which makes
them ignore newly released blockchain games in the market.
Even after having multiple challenges in the blockchain gaming industry, many blockchain games are making good profits in the market that you must check.
Real-world examples of Blockchain games
1. CryptoKitties
Cryptokitties was released in November 2017. Crypto kitties are considered one of the oldest games in the blockchain era. Cryptokitties was built on the Ethereum platform, which aims to generate kittens with a unique trait to maximize their value.
Players can trade their kitties through an open marketplace with other players in the game. Each kitty’s personality is based on genes representing various traits like eye shape, fur pattern, mouth shape, and accessories of different colors.
| Launched in | 2017 |
| Founded by | Dapper Labs |
| Available on | Web browser |
| Blockchain | Ethereum |
| Market valuation | $20B |
2. Decentraland
Decentraland is another blockchain-based platform that has a decentralized virtual world. The players can experience the virtual world by exploring and purchasing various properties other users own.
Along with world exploration, the game also forces other kinds of games, such as pay-to-play games, space adventures, clubs, social events, etc.
| Launched in | 2020 |
| Founded by | Argentinians Ari Meilich and Esteban Ordano |
| Available on | Desktop |
| Blockchain | Ethereum |
| Market valuation | $15.5M (per year) |
3. Gods Unchained
God’s Unchained is a collectible card game that uses the Ethereum blockchain to track each player’s card ownership. The game containing digital assets cannot be copied or modified without users’ permission, making the assets more unique and valuable.
Also, the game offers direct card trading between players without needing them to reach the game’s marketplace. Each trade is secured by the ethereum blockchain, giving better security from hackers.
| Launched in | 2015 |
| Founded by | James and Robbie Ferguson |
| Available on | Web browser |
| Blockchain | Ethereum |
| Market valuation | $4B |
4. Star Atlas
The game takes players to 2060, where they can compete and collaborate. The game offers multiple activities, such as city construction, land purchasing, and trade with other players.
| Launched in | 2021 |
| Founded by | Michael Wagner |
| Available on | Web browser |
| Blockchain | Solana |
| Market valuation | $7.3 M (per year) |
5. Sandbox
The Sandbox is one of the oldest games on the list. Later, Sandbox integrates blockchain technology into its game to enhance the users’ gaming experience. The game offers a virtual world where users can build and monetize their assets within the game.
| Launched in | 2012 |
| Founded by | Arthur Madrid |
| Available on | Web browser |
| Blockchain | Ethereum |
| Market valuation | N/A |
Know why it is best to invest in the gaming blockchain industry.
Why investing in the gaming industry a great choice?
The given data will show you how fast the market size of the gaming industry is growing:
Moreover, there are a few stats that help you realize why it is a great time to invest in the gaming industry:
- Statista reports’ predicts that the gaming market can reach around $270 billion by 2025
- The US consumers’ spending on gaming grew up to 8% in 2021
- In 2021, the gaming industry generated around 180.3 billion
- Play-to-earn games are attracting millions of gamers on their platforms as these games provide better earning potential
Looking to invest in the blockchain gaming industry?
Since the gaming industry is already growing and will grow further, adding the advantages of blockchain technology to your game can give you a better chance to the game for succeeding in the market.
If you have already developed your game and are looking for a team of blockchain developers, then we suggest you contact Idea Usher.
Idea Usher is a team of expert blockchain developers and project managers that can help you to make a viral game to bring better profits for your company.
If you don’t have your game developed yet, then you can still contact Idea Usher to help you to create blockchain-based gaming platforms starting from scratch.
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FAQ
1. How is blockchain used in the gaming industry?
The developers integrate blockchain technology into their games, allowing players to customize their gaming items, such as enabling modifications for character development, offering blockchain-based crypto and NFTs transactions, etc.
2. Which blockchain is best for gaming?
You can consider the following blockchain platform for game development:
- Ethereum
- Hyperledger fabric
- IBM blockchain
- Tezos
3. Why are blockchain games popular?
Blockchain games are popular because integrating blockchain with games offers multiple benefits such as:
- Secure and transparent transactions
- Better level of security
- Proper users verification before each transaction
- Provides a better user experience
- Offers better trading resources
- Provides crypto wallets for users to store their digital assets
4. What is a blockchain gaming platform?
Blockchain games are video games that integrate blockchain technology, such as cryptocurrencies, NFTs, metaverse, etc. The games use decentralized servers for storing and verifying users’ data.
5. Which are the biggest blockchain gaming companies?
The biggest blockchain gaming companies are given as follows:
- So rare
- OpenSea
- Decentraland
- Axie Infinity
- Splinterlands
- The Sandbox
- Enjin
- Forte Labs
- Dapper Labs
