The video game industry is an ever-changing landscape that is constantly adapting to new innovations in technology, and blockchain is one of the many possibilities currently being explored.

Digital Rewards & Items

This is probably the most promising use-case for blockchain within video games. Digital in-game items can be secured on the blockchain so that ownership of each item is recorded and immutable. Players would be able to have real-world ownership of their digital collectibles and could sell them to other players at their discretion, allowing them to earn profit through their gameplay. In this way, blockchain can create an economy within a video game’s community.

Cryptocurrency could be used to purchase in-game items by awarding game-specific currency to players that they can spend on cosmetic or useful items. Smart contracts could be used to automate payments and execute trades between players in a secure way that eliminates fraud because authenticity can be confirmed with the blockchain.

Anti-Cheat System

Blockchain could help prevent cheating in online games and make it easier to identify cheaters. Due to the transparent nature of blockchain, any inconsistencies within one player’s gaming experience (exploitation of a bug, hacking, etc.) could be identified within the backend ledger.

Connected Games & Sequels

When multiple games exist on the same blockchain, moving data from one game to another is much simpler. For example, a sequel game could easily pull cosmetic items, digital currency, choices, and outcomes from the first game into the sequel in order to tailor the gameplay or give the player the ability to purchase in-game items with currency earned through a previous game.

New Types of Gameplay

We will likely see new and innovative ways that developers incorporate blockchain into their games, potentially leading to an entirely new genre dedicated to blockchain gaming. Cryptokitties is a prime example of how a blockchain itself can become the game. While this could be the start of a new trend in gaming, it’s more likely that blockchain will be used to improve or augment pre-existing game structures.

Barriers to Mass Adoption

In order for any in-game cryptocurrency or digital goods to hold value, the community of players must agree on that value. Right now there are already disagreements within the gaming industry over the value of virtual items and the way that video games reward them to players, particularly when it comes to mystery loot boxes that may or may not contain items the player wants. Some people believe purchasing loot boxes is a form of gambling, and some countries have even gone so far as to ban them. Until this issue is sorted out, blockchain’s incorporation into this process may be stagnated.

Mass adoption of blockchain and crypto within video games will also be dependent upon developers who understand this kind of technology making the process easier and more scalable for major gaming companies to apply to future games.

Additional Reading

Check out this list of the 50 Best Blockchain Games by Future of Gaming on Medium.