Blockchain technology has been able to change the way we live, in more ways than one. The biggest companies are beginning to adopt it, while even governments are now studying how they can leverage it to become more effective. But there’s a multibillion-dollar industry that’s ripe for disruption. Gaming Industry.
The very first PC Game
Since “Pong” – the very first PC game reached our TV screens in 1975, the gaming industry has never stopped growing. From that inauspicious start, with two paddles and a pixel ball, the market has seen gamers around the world spend around $138 billion on gaming in 2018.
Traditional gaming platforms create closed loops in terms of development: no one from the outside can build a different version of it, see the core logic or use existing data (assets). In the blockchain, most of the core logic and data (assets) are governed by smart contracts, and that can be analyzed and reused.
Blockchain games are decentralized. Instead of living in a centrally controlled server, Blockchain game assets (digital goods) are distributed among ‘players’. Blockchain games either issue their own token or use an existing token (such as Ether in case of Ethereum). With well designed token economics and gameplay, blockchain games are starting a new era in the gaming industry.
5 Industry Transforming Blockchain Applications | Data Driven Investor
True ownership, decentralized games, provably fair gameplay, acquiring crypto through gameplay (play-to-earn), global leaderboards, censorship resistance, and no infrastructure to manage for the developers, are just a few of the touted advantages of Blockchain games.
Ways to solve problems for the gaming industry
The blockchain and cryptocurrencies are the perfect innovation perfectly suited to solve the gaming industry’s problems and give players a more complete and free gaming experience.
- Making payment processing cost-effective
The gaming industry is accessible from all over the world. Though players get a chance to leverage fiat currencies, they are not effective in terms of cost-effectiveness. A player has to pay expensive fees to utilize online gaming.
With Blockchain, gamers can keep their debit or credit cards away. No matter how small payment is, this technology offers a decentralized method for it. There is no way for a scammer to steal information or manipulate the sector.
2. Minimizing fraudulent activities
The gaming industry suffers the maximum hit of online frauds. Hence, the industry constantly looks for techniques that can save lost revenues.
Blockchain can save billions by eradicating every chance of fraud. Companies such as B2Expand has already started using the crypto economy to reduce fraudulent activities.
3. Storage safety and security
Game items constantly face a security threat from hackers. Hence, storing data online seems a risk for game companies. But Blockchain encryption has come out to be a sustainable solution.
Data stored with blockchain encryption makes it impossible for hackers to breach. This technology requires correct nodes at the correct time in order to breach. Which is why game items get double security that saves from breaches.
4. Better control over the gaming economy
The government can put bans or regulate the economies of an industry. Harsh regulations give rise to black markets, which is never good for any industry. Gaming companies have been suffering from this problem as well. Game developers are losing their control over the trade. And that harms their ability to gain maximum revenues.
With Blockchain, there is no need to create policies. A developer can collect royalties from every gaming ecosystem on an ongoing basis. Plus, blockchain allows a game developer to begin or stop selling assets without any restriction.
5. Reducing the price of gaming items
The high price of gaming items limits the customer base for developers. This is also a reason why gamers look for stolen game items in the digital market. However, Blockchain comes with affordable micro-transaction benefits. This can allow developers to sell their power-ups at cheap prices without losing profits. Moreover, a user can control his expenditure when playing online games.
It is visible that Blockchain and cryptocurrencies are the future of the secure and thriving gaming industry. The growth of this industry will continue to increase in the coming years. That is a certainty!
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Blockchain and Crypto are Ready to Solve the Gaming Industry’s problems was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.