Blockchain To Bring The Next Big Revolution in Online Gaming Industry
In a short period, Blockchain has brought us more application areas than expected, be it finances, healthcare or gaming it has proved to be the 21st century’s most influential technology adding core values to all the sectors. In this context, we’ll be emphasizing over its impact on the gaming industry and its future aspects.
Developments in Blockchain are now likely to cause more disruption in the fast-moving world of gaming that comprised of a global audience of 2.3 billion gamers who have already spent over $137 billion in the year 2018. This technology can solve some of the problems that have developed within the gaming industry.
Challenges in the Gaming Industry
1. Lack of Security
One thing that is found common among gamers all over the globe is that they all possess a gaming account associated with their gaming profile. Using this account, they can accumulate incentives or rewards, and in some cases, make in-game purchases using real money.
However, unfortunately, the more valuable these accounts become, the more likely they are vulnerable to being targeted by hackers. For instance, if we look over the case of popular Fortnite game, we’ll be unhappy to know that Players of the Fortnite game have fallen victim to such hacking attacks.
As a result, game publishers often find themselves held to account for such happenings and thereby, are held solely responsible for the poor security.
2. Resilience and Scalability
Presently, games are running over the centralized servers which are subjecting them to downtime, making it expensive to the game publishers. For instance, Gaming console developing firm, Sony lost $171 million during a Playstation network outage some years back.
Further, traffic congestion has always been a problem in the paradigm of a centralized server. When a large number of simultaneous gamers connect to the same server, it causes many issues like delay in the responses in gaming.
3. Higher Cost
The software and hardware of a centralized server are usually very decisive. A single centralized server may not be able to serve a certain number of users. Thereby, one needs specific software and hardware, especially on the server side, to create a comfortable gaming platform as per the gaming requirement; this thus increases the overall cost.
The Blockchain is the solution
Undoubtedly, the gaming market has grown at an alarming rate in the last few years. However, this rapid growth has also led to the birth of problems in the industry. Thus, to sustain this current growth, all such issues need to be addressed by bringing up the best solutions in the gaming interface.
So, what’s the solution to these problems? Well, the answer to this very question is the intrusion of the Blockchain technology in the gaming! Let’s have a look!
1. Engaging more users
Blockchain can be instrumental in retaining a pool of loyal users through incentives that can be held securely, ensuring uptime and the ability to scale up or down according to the user population are all issues that Blockchain can solve.
2. Reduced Cost
With the online gaming market expanding, the mobile gaming market is finding more space into the system. As per the aforementioned Global Games Market Report, mobile gaming is consistently leading its way from being the smallest gaming segment to the largest.
Further, it is estimated that by the year 2021, the mobile gaming sector will grow by $100 billion in annual revenues. The reason behind this growth is that these games are free to download.
Further, users are given an option of earning points while playing, which in turn gives them additional privileges such as upgrading a character or simply being able to proceed to the next level.
However, in case gamers fail to attain the required amount of points that they need, they are given an option to purchase them directly from their phone via debit/credit card, PayPal and digital currencies, thereby, serving as an excellent way for developers to monetize.
For instance, hugely popular mobile game Clash of Clans, which is though free to download reportedly generates close to $60 million monthly revenues, just from users purchasing the game’s in-house currency.
3. Good for Designers
Another reasonably better option brought up by the Blockchain is that utilization of the decentralized characteristics of the blockchain protocol, gaming developers are allowed to cut out the need of any middle-man and thereby, market their self made designs directly to the consumer.
Thereby, Blockchain provides direct creator-to-consumer opportunity, enabling game developers to build and distribute their products without the need for expensive intermediaries and further monetizing game creations properly; this also affords them complete control over the digital rights management process.
Developers can further monetize games through unique in-game tokens or assets as part of the game’s design and receive automatic payments in the format of digital currencies by leveraging smart contracts.
Hence, Blockchain acts as the most promising tool for gamers for indispensable reasons including decentralized asset exchanges, verifiable scarcity of virtual objects and collectibles, fast and secure payment networks, and thereby, giving an ability for the game developers to properly monetize their creations.
Besides providing a sustainable base for the games, the blockchain technology for gaming is equipped with non-fungible assets that can be anything from game skins to virtual cards part of a specific game that is verifiably scarce.
The genuineness of individual virtual items is further assured using smart contract standards such as the ERC-721 which is a non-fungible token standard and the newer ERC-1155 reference implementation.
5. No Frauds
One of the common problems that plague gaming is its incapability to prove the provenance of specific virtual items, leading to fraud. To mitigate such issues, Blockchain’s application, Smart contracts allow users to be confident that they are receiving authentic items since they are tethered to the Blockchain.
Further, making such in-game exchanges have emerged as a lucrative industry worth $50 billion. The industry is expected to grow further; this is not limited to in-game item exchanging industry like legacy video games, Call of Duty and Counter-Strike. Rather it also serves to be promising for the popular blockchain-based games like Cryptokitties that are built over a blockchain interface.
Facilitating the exchange of virtual in-game items and crypto collectibles has been the goal of some notable platforms including Wax, OpenSea, and Rare Bits.
Decentralized asset exchanges have the potential to eventually develop into bustling marketplaces in various industries from financial assets to physical assets tied to a blockchain.
6. Non-Fungible Tokens
Another apparent benefit being served by the digital currencies for gaming is its ability to bring up faster and more secure payment networks. The payment benefits of digital currencies are especially useful for eSports, creating native in-game tokens, and driving seamless transactions on decentralized exchanges.
To achieve it, there are platforms like OpenSea allows users to pay for virtual collectibles using Ether, while other decentralized exchanges such as Wax enables users to pay in the native WAX token and platforms like Enjin further allow developers to build fungible in-game virtual currencies and assets as part of their unique ecosystem.
Finally, Unikoin Gold is an eSports betting platform that allows users to participate in decentralized gambling using the native UKG token of the platform.
Summing up to these aspects, we may infer to the fact that the clash of blockchain technology and gaming holds great promise for the significant growth of blockchain and gaming industries. Improvisations in the fastly emerging field of blockchain gaming have pushed the limits of non-fungible assets and are poised to keep supplying novel developments in other areas like scalability.
Gamers were some of the early adopters of digital currencies as they were already familiar with many in-game virtual currency models and saw the benefits of integrating digital currency networks into the domain. The eSports industry is booming, and it is only a matter of time before its rise is perfectly coupled with digital currency payment systems and decentralized models.
The Blockchain decentralized ledger ultimately boils down to trust, mitigates the chances of manipulation and fraud from the equation and further intrusion of smart contracts further removes the possibility of dispute, with all bets and moves recorded and validated on the Blockchain. The calculations of odds are also far more transparent and fair.
Henceforth, the world is gradually unraveling new ways to use Blockchain technology. While a massive proportion of people would quickly think of digital currency and finance every time the word “Blockchain” is heard, but, since after it has entered the gaming, people have started realizing the fact that there is more to this technology.
Already, many projects have become live homing to about two billion users and thereby, projecting growth from USD 94.4 billion to $128 billion in revenue by the year 2020, thus, thriving the gaming sector.
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