How Blockchain is Transforming the Gaming Industry

Over the past few years, the gaming industry has witnessed remarkable changes because of the advent of various cutting-edge technologies. The industry has mitigated various prevailing challenges and found newer ways to take the experience of both game players and developers to the new level with the adoption and application of Artificial Intelligence (AI), Augmented Reality (AR), Virtual Reality (VR), and Internet of Things (IoT).

In the midst of this, it comes as no surprise that the gaming industry is also looking ahead to embrace the Blockchain technology; making the gaming experience “decentralized”. But, why so? How can the technology behind the cryptocurrencies make a difference in the gaming world?

Let’s find an answer to these multi-dollar questions in this article. But firstly, let’s have a quick look at the basics of blockchain.

A Brief Introduction to Blockchain Technology

Blockchain is a tamper-evident, shared digital ledger that enables one to record all the transactions in public/private peer-to-peer (P2P) transactions. In layman terms, blockchain is a distributed decentralized public ledger where the data is stored in different blocks, such that each block contains the hash address of a block in the next connected block. Here, the hash address is designed using the information contained in the associated block, which ensures that no other node can be connected to the chain.

With this attended to, let’s dive deeper into the gaming market and see different ways blockchain can make a difference.

7 Applications of Blockchain Technology in the Gaming Industry

Blockchain comes with the power of decentralization and highly robust data encryption techniques which makes it nearly impossible for hackers to create, delete, or modify existing data across the server. This way it ensures a secure environment for both game entrepreneurs and developers, which further results in gaining better results.

Besides the evolution of new gaming models and the best online gaming platforms, blockchain also come up as the perfect way to manage digital assets for our favourite game. That implies if a game player wishes to buy or sell in-game collectables using digital currencies, they can do so with the robust security provided by blockchain during the transaction.

One of the biggest advantages of blockchain technology in the gaming industry is that it provides game players with an opportunity to own their digital assets.

A blockchain-powered game uses smart contracts to manage all the transactions within the game. These smart contracts are executed automatically based on the conditions coded in them, and the transactions are irreversible in nature. So, when you launched a blockchain-based game, all the in-game assets that players have purchased using smart contracts get transferred to their public addresses automatically. This way, smart contracts facilitate them the full dependency on their digital assets.

Apart from this, no centralized body is participating in the working of smart contracts. This implies no can change the public address where the in-game assets are stored, which further means that no one can change the ownership of those assets secretly. They remain the property of the game player they belong to.

Last but not least, blockchain technology introduces the power of smart contracts into the gaming industry, which brings better opportunities to create ‘IF-THEN-ELSE’ conditions. And this way, uncover newer ways of producing rare digital collectables and driving higher revenue. A perfect example of which is CryptoKitties, the platform where smart contracts result in the breeding of rare kittens and attract a higher amount of money.

Another way the blockchain technology is improving the evolving gaming market is by adding a tint of interoperability into the process. Let me explain this in detail.

Traditionally, cryptocurrency traders and investors rely on a public address that can be used for making cross-platform transactions across the blockchain ecosystem. Likewise, whenever a developer develops an application, the game players can consider a unique public address to enter the next gaming level. Because of this, a player playing an online game, for instance, can take advantage of the same public address to transact with different games.

Another gaming area where blockchain can prove to be a highly effective tool is collaboration.

Earlier, there was merely any source of communication between game players and the developers who created it. Because of this, it was quite difficult for the latter to design a game platform that delivers a highly immersive experience to the former.

But, with the help of blockchain, the gap between the two has somewhat filled. Blockchain-based applications added the power of consensus mechanism in the process that let players and developers discuss great ideas for enhancing games experience.

As already proven by the CryptoKitties, a blockchain-powered game launched by Canada-based Axiom Zen in November 2017, the technology also helps with projecting the values of digital assets in the gaming ecosystem.

Let me explain in simpler words. When you build an interesting and engaging game on the blockchain platform, players do not feel hesitated to devise the real value on the insubstantial collectables. 

As we have seen in this article, blockchain technology is revolutionizing the gaming industry in numerous ways. This has not solely moved the gamers but has also gained the attention of gaming industries and developers to discuss and get a bigger slice of the blockchain market. The one that is anticipated to grow from USD 210.2 Mn to USD 2312.5 Mn between 2016-2023.

So, knowing this, if you are someone planning to enter or already existing in the gaming economy, look ahead to consult with the best blockchain app development companies to introduce this technology into your business process today itself.