3 Ways Blockchain Technology Can Help Game Developers

The gaming industry is a high-risk, high-reward business environment. Developers require a substantial amount of resources and capital to develop a game and for that game to become a commercial success.

While the industry is embracing new and emerging technologies, game developers are just figuring out the benefits of utilising blockchain technology.

Here are three ways blockchain technology can help indie game developers succeed in the competitive gaming industry.

Crowdfunding

As a developer, it doesn’t matter if you have an excellent idea for a new game. Without adequate funding to bring the concept to life, the odds of your idea getting turned into a functioning game that is available to the public is very low. The reality is, the high-risk high-reward nature of the gaming industry favors well-established game development companies as there are high barriers to entry for new developers.

“Video games cost a lot of money to make, so companies need to have deep pockets and different ways of making a profit to stay in business.” [1]

However, through an Initial Coin Offering (ICO), developers can crowdfund their game without needing to rely on traditional investors. Crowdfunding through an ICO allows funding to be received from interested parties, most notably gamers who are interested in the game concept.

Crowdfunding through an ICO benefit both developers and gamers. Developers get the crowdfunding they need, and gamers get to see the game come to life. To incentivise supporters further, developers can reward them with in-game digital goods and exclusive game features.

In-game currency

In-game currency isn’t something new. The use of micro-transactions has become important for developers to incorporate into their business model. However, using blockchain technology to create a standardised currency can help game developers reap further benefits.

In-game currency enables developers to offer freemium games, helping to attract large audiences and gain significant revenue through micro-transactions. Utilising a blockchain for backend infrastructure to better allow in-game tokens or currency can unlock new sources of income for developers.

Learn more about the monetary value of digital goods and how blockchain and can revolutionise the gaming skin marketplace.

Blockchain enabled in-game currencies allows for the integration of games with a tokenised coin, which enables gamers to buy and sell their digital goods from other games on the same platform. If a game development company creates a multi-game blockchain system, they will be able to deliver gamers the flexibility they are demanding.

This will not only encourage gamers to stay on the platform, but it also benefits developers in the way of security and transaction fees. Furthermore, a blockchain can enable virtual goods to get tokenised and exchanged for cryptocurrency.

Overall, while building a blockchain gaming infrastructure may seem like a significant investment, starting early and utilising blockchain technologies as a foundation to develop future games will pay off in the long term.

Decreased R&D costs & multi-game integration

Developers who utilise blockchain technology can easily integrate the same network into future games, reducing research and development costs and enabling multi-game feature integration.

Strategic planning and the right developers can help create the fundamentals of blockchain-based gaming networks. Having multiple games on the same network unlocks the possibility to integrate features between games, such as in-game currencies and trading marketplaces. Worldwide Asset eXchange (WAX), for example, has followed this model and created a decentralised platform that allows for the trading of digital assets with the use of tokens through virtual gaming marketplaces.

Big benefits await game developers

Gaming is a multi-billion dollar industry, but much of the revenues are gained by the big game development and distribution companies. The three benefits explained in this post provide a good starting point for developers to get their hands on more seed funding and get a larger slice of revenues.

• Crowdfunding through ICOs allows gamers to fund their game by tapping into gamers and supporters around the world, ridding the reliance on institutional investors to fund game development.
• In-game currency enables developers to offer freemium games, helping to attract large audiences and gain significant revenue through micro-transactions.
• Connecting multiple games on the same blockchain network allows for reduced R&D costs, higher security, and the cross-functioning of features between games.

For more blockchain and gaming articles, check out -

Gaming on Blockchain — Exploring blockchain applications in the gaming industry.

Blockchain & Decentralised Gaming Distribution — Benefits for Indie Developers & Gamers

Originally published at Blockchain Review.