How Blockchain Technology Is Changing The Gaming Industry

How Blockchain Technology Is Changing The Gaming Industry

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June 18, 2024 by Editor's Desk
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The gaming industry has adopted most of the emerging technologies from time immemorial, from a time when graphics could be regarded as poor to the age of 3D graphics. In the last few years, a new technology has emerged, and it promises to be yet another stellar adoption by the gaming industry. This technology is
How Blockchain Technology Is Changing The Gaming Industry

The gaming industry has adopted most of the emerging technologies from time immemorial, from a time when graphics could be regarded as poor to the age of 3D graphics. In the last few years, a new technology has emerged, and it promises to be yet another stellar adoption by the gaming industry. This technology is called blockchain, and it’s known to be a decentralized ledger system, where every move or record is irrevocable. 

Blockchain technology is known as the chief foundation of top-performing cryptocurrencies such as Bitcoin and Ethereum, among others. Now, it’s slowly finding adoption and application in the gaming industry. With it, key characters in the gaming world, such as players, developers, and investors, may be presented with new opportunities to explore. 

Digital Assets In the Gaming World: Scarcity and Ownership 

One of the most significant changes that the adoption of blockchain technology promises to bring to the world of gaming is the ownership of items or digital assets. In the world of traditional gaming, you get your items, including the following:

  • Weapons;
  • Real estate;
  • Cars;
  • Skins.

In a real sense, these items are owned and even owned by the game developers. This means that the players struggle, investing time and energy to get those items, and they end up not owning them. With smart contracts, you can automatically trigger processes such as rewards in a modern gambling house such as Twin.com Casino Sweden. Players are more satisfied with this new development because they get what is due to them once they have satisfied the needed requirements.

Now, blockchain technology offers players an option to own and control items they get in a game via a decentralized ownership pattern. Each asset owned by a player can be tokenized using Non-Fungible Tokens, which are commonly known by their abbreviation NFT. This development hands players more opportunities to own their players in the real sense. They can either:

  • Sell;
  • Trade;
  • Move their assets across different games and channels. 

In-game items now boast of real quality, which can only be got by perceived scarcity. 

Play To Earn Models

This is a new gaming model in the entertainment sector, as players now can earn real value through gameplay. With this model in place, players can play games like Axie Infinity and earn real, cold cryptocurrency. The play-to-earn model doesn’t just reward players for their loyalty but also serves as an additional or sole source of income, especially in parts of the world where employment is difficult to come by. 

How does the P2E work?

As players spend time and effort on a gaming platform, they can be rewarded with tokens that they can convert into their local currency. This development clears the air around the continued existence of a group —professional gamers.

Better Security and Transparency 

Transparency is low-tension in the world of blockchain because all game activities and monetary transactions are registered on the blockchain network. The records stored on a blockchain can be edited or deleted, making it almost foolproof against fraud and cheating. With this zero possibility of cheating, there is a high level of trust in the players on a blockchain-integrated platform, as they can easily verify the authenticity of the items they are being issued.

Another landmark development in the world of blockchain is the creation of smart contracts — self-executing agreements written into codes. This adoption eliminates the need for intermediaries, which was a normal sight in the past. 

Decentralized Gaming Systems

The norm in the world of gaming is slowly tilting toward a reality where one man will not be the overall owner of a platform; instead, it will be controlled by a team of players and developers. Customers are already living the emerging norm in games like Sandbox and Decentraland. They can customize, control, and make money from their own experiences on the gaming platforms. Gamblers also enjoy different tools to help them build and transact in the virtual worlds afforded to them by the various games they play.

With more control over the game they play and its development, players can now enjoy more customized options. The world of blockchain and its entry into the gaming niche is not without some challenges. Some of them include the following:

  • Limited flexibility;
  • High transaction rates;
  • Impact of blockchain-based activities on the environment and economy.

Blockchain technology is expected to grow, and more solutions are being developed and implemented to help address the existing challenges in the world of gaming. Developers are exploring ways to integrate blockchain ‘transparent’ technology into their existing gaming systems. 

Gamblers are not left out of the revolution, as they are currently being offered different entertainment and monetization models, such as play-to-earn (P2E). Modern casinos like Twin.com Casino Sweden are also making more promises of security and transparency with the advent of blockchain technology and the agenda of decentralized ownership setups in the gaming ecosystem.