Redefining the gaming industry with Blockchain Technology
Over the years, Blockchain has established its footprints in all most all sectors, one of them is the online gaming industry that is ongoing through considerable changes, thereby, bringing the realistic gaming experience to the players. The various application of the internet and mobile has led to the noticeable development in the gaming industry, thereby, making it robust in all terms. The secure and immutable ecosystem served by the blockchain technology can further institute changes in the gaming industry and make it compliant and resilient.
Though the different application of the Blockchain, the smart contracts have effectively brought up a decentralized system. It doesn’t leave any loopholes for frauds and other illicit activities in the gaming industry; still, there are specific dynamics and characteristics of the online gambling industry that have serious flaws and gaps. Henceforth, to create a robust and reliable gaming industry where gamers feel free and secure to play games, particular challenges must be addressed, which will be a very crucial step in enhancing the overall platform.
Challenges in the gaming industry
Ever-rising online scams, frauds, data thefts, lack of privacy and transparency, and high transaction fees are some of the major problems that the online gaming industry is facing today. Let’s have a closer look over the challenges to be addressed in the gaming industry:-
The online gaming industry is not self-regulated, which enforces its dependency over the third parties and grey markets, which will further increase the chances of frauds and malpractices.
Lack of Transparency
There is no clear separation between online gambling and gaming services, which endangers the rights of all the actors and thereby, makes the gaming system less secured.
Usually, gaming platforms neglects data safety, privacy, and transparency. Further, broken loyalty programs are being offered to gamers, which leads to trust issues.
Why do we need Blockchain in the gaming industry?
The decentralized blockchain technology, along with smart contracts, has not only let gamers to fight against the loopholes in the gaming industry but also, irrevocably altered the future of the gaming industry. Let’s have a look over the parameters that are primarily brought up by the Blockchain in the gaming industry:-
The data and information stored over the blockchain interface are encrypted and safe from any manipulation and breaches. Further, the distributed ledger ecosystem secures public records, interactions, as well as transactions in a cryptographically secured manner.
No to grey market
Since the records cannot be altered or changed at any point in time, Blockchain provides users a platform that offers a more secure and trustworthy network. In this, there is no third party interference, and thus, the copyrights are kept safe and prevented to enter the grey market.
The inception of the Blockchain in the online gaming industry provides an opportunity to innovate, expand, and also improve the in-house relationship between the actors over the platform. Thus, blockchain technology can undoubtedly leave a positive impact on the online casinos and eSports industry.
Eliminating the need for third-party interference or the involvement of the grey market makes it impossible to forge or manipulate the data and information; this lets the establishment of 100% secure network that has zero chances of frauds.
The Blockchain powered platforms can significantly alter the distribution and allocation of winning money for the gamers, which can bring up a fair system for betting games as they are played individually; this is the best solution to avoid entry into any gamblers money.
Since the blockchain platform eliminates the need of any intermediate party for any verification process, the information and data are stored cryptographically over blocks over a network; this makes it impossible to encrypt or manipulate and overall are cheaper.
Besides, avoiding the need for any documentation work, which in turn gives anonymity for its users, the gamers enjoy the privilege of earning or getting incentivized in terms of Cryptocurrency. It can be easily exchanged or traded for various other cryptocurrencies or fiat currencies. For example, one would be able to win/earn a virtual asset in a game like Super Smash Brothers and use it to buy characters in other Nintendo games. The unique confirmation process of Blockchain is very pleasing for the gamers, thereby, bringing their interest in this next level of gaming.
Further, noticeable changes are starting to spread throughout the $108.9 billion computer gaming industry, as blockchain technology looks set to change the perspective of games enjoyed by over 2.2 billion people around the world.
This technological development is further getting a boost collectively from both big techno giants and numerous startups. For instance, a startup came out of stealth in November 2018 announced a $16 million Series. The funding round has decided to use the venture capital to develop some games on the EOSIO blockchain for PC, mobile, and consoles. To create an open environment for developers to build games with “player-owned economies,” thereby, giving enough freedom to gamers from all corners of the world.
To continue from the above discussion, a reasonably new addition to the industry is that of blockchain-based gaming. By utilizing the decentralized characteristics of the blockchain protocol, gaming developers have the potential to cut out of the middle-man and market their designs directly to the consumer.
Moreover, it also provides a seamless barrier to entry, as there is no requirement to inject resources in the hosting of an independent server.
In terms of monetization, blockchain-based gaming has the opportunity to install a similar model to that of mobile gaming, insofar that users are not charged a fee to play, but they do have the option of purchasing additional in-game products. However, the critical difference is that instead of using conventional payment methods such as a debit or credit card, users pay with cryptocurrencies.
Another fact, about the intrusion of the blockchain technology in the gaming which makes it more interesting, is that players can monetize their gaming experience and in-game items what they can trade on internal or external markets like Worldopo have been done. Crypto-based Mobile Game with the capability of transforming the gaming experience into real profit.
For example, “Worldopo” is a crypto-economical strategy game in the real world based on the blockchain tech, Augmented Reality, and Geopositioning. It is a building simulator set on an actual world map where every player can buy or rent a piece of land, start raising in-game structures and mining farms around the world so as they may build up their capital. The game encourages an economic stimulus and encompasses gameplay through the implementation of its cryptocurrency WPT, which players may mine within the game.
By the way, the Mobile game is available for download in both the Appstore and the Google Play store, (Android and IOS devices).
What’s the Verdict?
It seems that the online gaming industry has a bright time ahead. Not only because developers have recognized the massive demand for in-game purchases, thereby, judging merely by the year-on-year growth analysis to such a business model, and conforming to the fact that the users present worldwide see no problem in spending additional money. To obtain rewards that otherwise, would be challenging to get through gameplay points alone.
However, with the age of digitalization now transitioning over the world of blockchain technology, could we soon see a level playing field, whereby both the participants the developers and the end-user have the chance to benefit.
These updates from the year 2018, shows that blockchain uses in computer games are growing rapidly and that global gaming companies have already taken a step forward to explore the endless potential of the blockchain technology in turning the possibilities go alive. Thus, Blockchain technology has overall improved the prospectus of an online gaming platform, making it more realistic, safe, secure, and sound in all terms. Further, under the era of digitalization, the online gaming industry which has consistently maintained a large and enthusiastic pool of fan base since its inception in the global market is growing at an exceptionally faster rate. This growth has taken over as a result of consecutive development in technology over the years and has further created a plethora of innovative revenue streams for the gaming developers across the world to monetize their designs also.
One such technological development ever took in the gaming industry is the blockchain technology, that has proved to bring laurels to the hard-core players. Henceforth, game developers cater to a vast global audience of 2.3 billion gamers who have already spent more than $137 billion in the year 2018 and as per the developments in Blockchain taking now is likely to cause more disruption in the fast-moving world of gaming. Further, Blockchain can solve some of the problems that have developed within the gaming industry, thereby making it more lively.
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