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The Future of Blockchain Gaming

For the past five years, blockchain gaming has managed to establish a genre of its own. According to the Annual Dapp Market Report posted in January 2020, the user base from the decentralized gaming sector grew 162% last year compared to 2018. However, this percentage is just under 500,000 gamers, far more inferior than the 600 million console gamers alone.

The market is still young and continues to grow, showing a great understanding of how blockchain unlocks the value of both developers and gamers in the gaming world. With the bright future ahead, it is not surprising that the blockchain technology and gaming market developed a symbiotic relationship, making the user experience safer, secure, and manageable.

With the recent pandemic encouraging us to stay at home, the adoption of 5G technology, and the rapid growth of blockchain technology, the gaming industry is getting a serious boost. Over 2 billion gamers worldwide are willing to spend a combined $50 billion dollars on in-game assets and 100% of the total revenue only goes to gaming companies. But with blockchain gaming, things are now changing.

Why is blockchain technology the future of online gaming?

The blockchain technology is suited well for the gaming format as it allows:

  • Instant transaction

One of the issues faced by gamers is the additional fees charged by third-party payment providers when making in-game purchases. The blockchain technology eliminates the authority of bureaucracy and removes inefficient intermediaries from the process, allowing the fast and secure purchase of in-game assets. It makes the process of exchanging crypto units instant and efficient.

On the developers’ end, they are having difficulty in selling their software outside the app stores. But with the integration of blockchain technology, developers can now process nano-payments and receive them instantly.

  • To play anywhere

The use of crypto allows gamers to play anywhere in the world without having to worry about security and exchange rate issues. It provides gamers the option to play while hiding personal information such as email and card details. It also allows gamers to pay and withdraw funds faster without restrictions.

Cross-game interoperability is seen as a massive opportunity to keep players engaged, allowing both virtual currencies and in-game items to function in multiple games. Blockchain can also ensure the authenticity of in-game items or gamers themselves, making sure fair rules are always in play.

  • Safety and Security

Some gamers have trust issues when it comes to the security of online games, especially when making multiple purchases. In blockchain games, users can be confident in every transaction they make since blockchain technology prevents illegal trading of digital assets and eliminates hacking, stealing, and duplicating keys by creating an immutable ledger.

The technology enables digital scarcity, where gamers can take ownership of any in-game items. The gamer is also able to keep the items for a lifetime, which means even if the game is discontinued by the developers or no longer features some rare items, the gamer still retains ownership of the assets.

  • Opportunities to earn while playing
    One of the most compelling reasons why game developers use blockchain is because of the growing world of non-fungible tokens (NFTs).Players can hold and watch their assets rise in value, or trade and sell their assets on the open market as they please.

A good example of this model is the game CryptoKitties. The game allows players to buy, collect, mate, and sell virtual cats/kittens where each “CryptoKitty” is an NFT which is unique and owned by the user, validated through the blockchain, and cannot be duplicated or transferred without the owner’s permission. The most expensive CryptoKitty ever sold, called Dragon, was worth 600 Ether or $170,000 at the time of the transaction.

  • Hiding gamer’s identity
    In some online games, your transaction purchases may be secured but not your personal information. If you are uncomfortable with sharing your personal information online, then blockchain games will suit best for you.

With crypto transactions’ discrete nature, users can be assured that any purchases they made will remain anonymous, unless they voluntarily share their transactions. This is possible because the anonymous cryptocurrency address generated for user purchases constantly changes in every transaction.

One of the pioneers in producing unique and exclusive in-game items and events is Epik Prime, and working with Gameloft for Brands and Avakin are the top highlights of our achievements this 2021. With millions of active users, it is expected that these brands only work with reputable companies, especially since NFT is still nascent in the industry, and we take pride that we are one of those companies who can deliver. Epik continues to stay true to its commitment of strengthening brand value, increasing engagement, and delivering premium digital assets to users.

So, a seasoned traditional online gamer might ask, “How are traditional games different from blockchain games and how do NFTs become a factor?”

In traditional games:

  • You buy the game, you play the game.
  • As you play, you can find, discover, or purchase items, weapons, and gears — using fiat money through credit cards, bank transfer, and third-party payment providers.
  • You can use these items while playing the game.
  • When the developers discontinue the game or you simply quit playing, you CANNOT use the items you purchased or found in the game to another game. This means all your hardwork in playing the game for months or years is meaningless now.
  • You DON’T own the items in the game, which means you CAN’T sell or transfer them to another player or external marketplaces.
  • Game items are only usable in their respective games.

In blockchain games:

  • You buy the game, you play the game.
  • As you play, you can find, discover, or purchase items, weapons, and gears in the form of NFTs — using cryptocurrencies through Bitcoin or Ethereum wallets.
  • You can use these items while playing the game.
  • What makes blockchain games different from other games is that their items exist outside the game.
  • When the developers discontinue the game or you quit playing, you CAN use the items you purchased or found in the game to another game.
  • You OFFICIALLY own the items in the game as an NFT, which means you CAN sell or transfer them to another player or external marketplaces since it has provable ownership and history.
  • You can convert the items into cryptocurrencies.
  • The item and its transactions are recorded in the blockchain for all to see.
  • Game developers decide to incorporate items into their games.

Items in traditional games can only be used in that specific game. Let’s say you play Valorant and you own a rare armour set. That armour set can be used in Valorant alone. Game developers create the items according to their liking without relying on specific data. They are the real owners of the in-game items and they can remove any items from your inventory anytime if you violate any of the guidelines or get banned.

In the blockchain gaming scenario, items or NFTs are stored in the blockchain with data of who owns what asset. For developers who want to incorporate blockchain technology in their games, they MUST check the blockchain to see what users own and decide the scarcity of the item that will be available.

Let’s use first-person shooting games as examples. If Valorant developers decide to create NFTs, they need to check the player’s registered public Ethereum address to see what assets related to the game they can incorporate as NFT. If they see a rare armour set in the blockchain that came from Counter-Strike, they can decide to allow players to use it in Valorant.

This model is also applicable to other genres of online games such as Multiplayer Online Battle Arena (MOBA) games, Action/ Adventure Games, and Trading Card Games to name a few, allowing players to access the item in their inventory in any game so long as the developers of the games incorporate the existing item or NFT from the blockchain. While every blockchain game might have different applications on the said rare armour set, the fact that the item sits in the blockchain is a win-win solution for players who invest in games and developers who want to achieve a high player retention rate.

Final Thoughts

Blockchain technology in online games may seem technical, but the benefits for both developers and gamers are evident. For gamers, this technology improves their overall gaming experience while for developers, it is a good investment with high returns. The development of blockchain technology in online games is still in the early stages, but the future is certainly bright.

The future of gaming is blockchain!

References:

https://www.inverse.com/gaming/blockchain-games-online-gaming

https://www.thedrum.com/profile/mdo-s-de-rl/news/why-the-future-of-gaming-will-use-blockchain

https://www.exodus.com/blog/the-future-of-gaming-on-the-blockchain/

https://dailygazette.com/is-cryptocurrency-the-future-of-online-gaming/

https://www.epik.gg/about-us

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EPIK Prime Team

EPIK Prime Team

Epik unlocks digital worlds and enables the sale of premium, name-brand digital items; leading the way for brands to sell to new audiences. 🕹️🎮