The world is untangling and exploring new use cases for blockchain technology each day. Even though a lot of people think of Bitcoin and finance when they hear the word ‘blockchain’, the technology extends its reach far beyond those two things.
Blockchain is one of the new technology trends and is almost everywhere, in all the industries. But, there’s another unexplored sector also joining in: online gaming. Several cryptocurrency projects are picking up their controllers, so to speak, and some of the industry’s renowned names are contributing their support.
In this blog post, we’re going to tell you how blockchain technology is making its way to $50 billion online gaming market.
With regards to other industries, traditional gaming payment systems are usually slow, cumbersome, and expensive. They can also cause a maldistributed ecosystem of wealth as the middlemen and large vendors benefit the most from those inefficiencies.
Cryptocurrency payments make in-app purchases frictionless as micropayments can transfer directly from players to the game developer. There’s no more need for a middleman in this transaction. The security and unchangeability of blockchain technology are enough to facilitate this type of trustless exchange.
The blockchain also brings value to game distribution. Rather than publishing to a centralized marketplace like the Apple App Store, game developers can reach consumers directly through a decentralized marketplace. The developers pay only a fraction of what they normally would on sales fees in order to avoid a centralized middleman
GameCredits is building this exact type of payments system. It aims to become the sole payment system of the online gaming industry. The project’s cryptocurrency, GAME, is used to pay for games and make in-game purchases. The developers also include GPlay, a decentralized app store that pays out 90% of the sales revenue directly to the game’s developer.
It’s not surprising that, from time to time, game development companies announce the development of games based on this technology.
You may already know about CryptoKitties and the dozens of other collectible-style video games on blockchain. Although, blockchain technology is being used for more than just cute, digital animals.
Decentraland is a “virtual reality platform powered by the Ethereum blockchain.” In quintessence, it’s a virtual world that you can own a piece of. You purchase land in the Decentraland world, and the record of ownership is recorded on the Ethereum network. You are free to do whatever you want to with your piece of land.
Distributed ledgers can help Gamers to use their items and video characters in different games, virtual reality videos, and 3D virtual reality environments. The collected data can be used for the algorithm to provide the best 3D virtual reality experience to the gamers tailored according to their needs and requirements.
Gaming developers can connect this world in virtual reality videos with digital assets such as the items and skins by using blockchain technology.
Some projects are obscuring the lines between virtual reality and actual reality. The trend began with Augmented Reality games such as Pokemon Go and is unceasing through the blockchain. Because of the amicable nature of cryptocurrency, you can receive monetary rewards for real-life actions that you’re able to spend across virtual platforms.
Experience Points (XP) is the only project making this happen. Although Experience Points are confined to online gaming platforms by offering incentives, it also plans to expand into the real world.
Let us explain how it works: You earn certain XP, the platform’s virtual token redeemable for gaming items and services when executing certain tasks. These tasks can vary from unlocking a gaming achievement (virtual) to getting an “X” on a math test (physical). The team’s aim is to gamify life and reward you for everyday experiences.
It is quite early to make critical statements about the future of blockchain technology as it’s just starting to exemplify its hidden possibilities. Although, cool blockchain-based projects are moderately appearing, and their presidencies like full transparency of in-game transactions, opportunity to earn when playing, privacy and safety of accounts, effective communication among gamers are obvious.
A lot of things depend on whether the world adapts to cryptographic issues. The only certain thing is blockchain gaming is bound to happen, and the opportunities arising at this point are truly fascinating!
The appearance of the blockchain gaming trend is not without its obstacles, however. Extensible issues are reasonably restricting the development of various games at this point and will need to be overcome before the industry can reach its ultimate potential. Once that obstacle is overcome, watch out for blockchain gaming.