Explaining Potential, Limitations, And Real-World Examples of Blockchain In Gaming
The gaming industry’s next big thing in blockchain technology. For the past few years, blockchain-based games have been all over the place. However, the number of games has recently increased in the sector. Businesses that wish to create decentralized gaming apps now have additional options because of this technology.
According to the latest Technavio analysis, the worldwide gaming market is predicted to increase by $125.65 billion between 2020 and 2025, with a CAGR of 12.40 percent. The incorporation of Blockchain technology into gaming apps is a key driver of market growth.
Some real-life examples and the future of Blockchain in the gaming industry, which is gaining traction among business owners and entrepreneurs. Let’s take a closer look to learn more. But, before we get into how blockchain technology is being used in gaming, let’s first define Blockchain and how it is employed in the industry.
What exactly is Blockchain, and how does it apply to gaming?
Blockchain is a distributed digital ledger that allows for secure transactions and records to be kept. It has developed a unique gaming experience for both businesses and gamers who acquire in-game goods that can be swapped for real-world money using NFTs and cryptocurrencies. Axie Infinity, for example, has millions of gamers worldwide who use Ethereum-based currency.
Cryptocurrency’s Place in Gaming
Cryptocurrency has evolved as a result of its popularity in the gaming industry. Cryptocurrency is a digital currency that secures, verifies, and facilitates transactions using encryption. It enables users to make payments online without using traditional payment systems such as banks or credit card providers.
Avatars, power-ups, themes, unique artifacts, and other in-game purchases can all be made using cryptocurrencies, such as Bitcoin and Ethereum. While playing games, gamers can also earn awards or Crypto tokens.
You can’t refute the altering cryptocurrency trends that have taken over the whole gaming sector, especially with such a big rise in the gaming industry. Furthermore, with the emergence of crypto/blockchain games, blockchain technology is being employed in a variety of ways in the gaming business, including:
NFTs are non-fungible coins that may be traded or used to buy characters, memes, movies, and other digital goods in blockchain games. NFTs give gamers the ability to genuinely own their digital assets. This provides people more control over what happens to their objects and makes trading and selling them easier because a middleman, such as another player, is no longer required.
Earn money by playing.
The Blockchain has spawned a new sub-genre known as “Crypto-Games.” Crypto games differ from typical games in that they allow users to earn bitcoin (also known as digital currency) while playing. These games’ cryptocurrencies can be exchanged into real money or used to purchase new stuff within the game. So, how does this function?
When you play a crypto game, you are given a cryptocurrency that you may use outside of the game in “real life.” The goal is to entice players to keep playing by providing a cryptocurrency incentive that can be redeemed for real-world products and services.
Tournaments and virtual events
Virtual tournaments and events are an important part of the gaming business. Virtual events have been staged globally for decades, necessitating a large number of resources to manage teams, prize pools, and event venues. However, there have been other problems in this process, including expensive registration fees, ticket costs, bandwidth, cybersecurity, and so on. It’s also difficult to verify the benefits that participants receive.
Blockchain technology can help with this by allowing users to track and verify who has received awards for winning matches or competitions. Blockchain technology is decentralized and provides safe transactions between users and tracking data from any network where it is used. As a result, gamers may easily engage in virtual events and tournaments by utilizing blockchain technology.
How is Blockchain technology impacting the gaming industry?
Blockchain technology has recently gotten increasing attention due to its potential to change a variety of industries. Some of the advantages of Blockchain that are assisting in the transformation of the gaming industry and the development of blockchain games include:
Blockchain benefits that are assisting in the transformation of the gaming sector
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Transactions that are safe and transparent
Blockchain is a secure, transparent, and unchangeable system that prevents double-spending and transaction fraud. It provides users with extra security while conducting digital transactions, making it suitable for games in which players share sensitive data or virtual assets, such as NFTs.
Because Blockchain uses encryption methods like Secure Messaging and Two-Factor Authentication to give an extra degree of security, it can prevent sensitive data like player information, game data, and user transactions from being tampered with or hacked.
The user experience has improved
By making digital transactions and accessing virtual assets more efficient, secure, and transparent, Blockchain can help improve the entire user experience. It also allows consumers to download a variety of video games in various versions from any location without jeopardizing their gaming experience.
A blockchain gaming platform aids in the verification and legitimacy of all transactions and interactions between various parties. Businesses can utilize Blockchain to ensure that no individual or entity has been paid twice for the same service or items given as each transaction is recorded and verifying transactions. This helps to avoid fraud, which is one of the most widespread problems in today’s gaming platforms.
Resources are traded
Players can swap their belongings for cash or other resources. Players can deal with total trust, knowing that their items will not be stolen or replicated, thanks to Blockchain’s creation of a record of each object and its ownership. They can also sell and acquire in-game assets from other players.
By completing tasks and missions, players can win bitcoins as a reward. Players are awarded points in conventional games that have no monetary worth outside of the game. However, by playing blockchain-based games, consumers can earn cryptocurrencies that they can use to buy stuff from other gamers or even on e-commerce websites.
Creating game profiles that are integrated
Due to the popularity of blockchain games, it is possible to construct a centralized community where users can access a variety of games.
In comparison to traditional gaming, blockchain games have completely taken over the market. While there are numerous advantages to employing blockchain technology in gaming, there are also some drawbacks.
Blockchain technology’s gaming limitations
One of the differences between Dragonaire and other gaming platforms that also involve blockchain technology is that Dragonaire provides the opportunity to play for free. What are the limitations of playing for free? What advantages and benefits do users receive?
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However, while blockchain technology has generated the new potential for numerous enterprises, it has also brought new obstacles, such as:
The challenge of playing crypto games comes from the gaming mechanics rather than the storylines. A gamer must first create a user account, which is a simple process. Then the player must create a crypto wallet and purchase a specific quantity of cryptocurrency, which is a difficult task.
Cryptocurrencies such as MANA, Theta, and others pose a hurdle because regulators are still attempting to figure out how they work and whether or not they should be utilized in blockchain gaming.
The gaming industry is fiercely competitive, with new titles and platforms being introduced on a regular basis. This could make competing with traditional games harder for blockchain-based gaming. In the industry, there are various Blockchain-based games. Let’s look at some real-world examples of top Blockchain games now that you’ve learned about the benefits and limitations of Blockchain.
Blockchain games in the real world
Among the hundreds of blockchain games available, some of the most popular are:
It was one of the world’s first attempts to develop a blockchain-based game in November 2017. It has now become one of the most popular Ethereum-based games. The game’s main goal is to breed a new generation of kittens with distinct characteristics to increase their value.
In 2017, a new game built on the blockchain with support for NFT tokens called CryptoKitties thundered all over the world. There, users were asked to raise kittens. The success of the game did not go unnoticed and similar sites began to appear.https://t.co/u1JwZdQEx9 pic.twitter.com/4Bjr33PLTU
— apk fent (@ApkFent) May 16, 2022
Decentraland is a virtual reality platform that creates a decentralized virtual environment using blockchain technology. Users can produce, experience, and monetize content and applications on the platform.
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Users have the ability to walk around Decentraland’s virtual area, investigate, and acquire various properties owned by other users. They can even pay to play games, participate in space adventures, join groups, and try out all of the diverse experiences that builders all over the world could have imagined.
Gods Unchained is a collectible card game that tracks card ownership using Ethereum. Gods Unchained cards are digital assets that cannot be copied or modified without the permission of the owner, making them one-of-a-kind and precious.
The Gods Unchained cards can also be transferred directly between players without going via the game’s marketplace, and they’ve been protected from hackers thanks to the Ethereum blockchain.
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Last Will and Testament
The Last Will is a blockchain-based game in which players can inherit digital assets from other users. Users may form wills, set up trusts, and designate executors in the game, which is built on the Ethereum blockchain.
Also, read – How Axie Infinity is driving the Future of Gaming?
FIFAcoins4sale is an online marketplace where players can purchase and sell in-game stuff for FIFA’s popular football video game. The website employs a decentralized marketplace, allowing users to purchase FIFA currencies without fear of scams or fraud.
— Craig Frost (@FifaCoins4Sale_) December 7, 2013
The Gaming Industry’s Blockchain Future
Blockchain has a promising future in the gaming business. With more firms researching blockchain technology, we should expect to see more Blockchain-based games and platforms in the future.
According to the CEO of Quantum Economics, Crypto is the future of gaming. The in-game things will have real-world worth, and the games we play will become more resemble the real world. As a result, it is critical to invest in Blockchain now in order to reap the benefits later.
We may also anticipate seeing more features and applications for Blockchain in gaming as the technology develops and becomes more widely embraced, such as faster and more secure transactions, decentralized platforms for virtual worlds, and new types of digital assets.
Furthermore, as the gaming community expands, the social aspect of gaming becomes more crucial to gamers’ overall experiences. According to a recent Accenture poll, 84 percent of respondents believe video games help them connect with others who share their interests, and three-quarters believe that more of their social interactions now take place on gaming platforms rather than in person or over the phone.