There have been plenty of technologies, such as augmented reality, that have transformed the gaming industry in the last few years. Blockchain technology is another technology that is set to do the same. With this technology, it can enable a new way for developers and players to interact with gaming platforms.
Impact of Blockchain Technology on Gaming Industry
1. More Control of Virtual Assets
A gaming industry will store game assets on a centralized server, due to the risk of any assets being copied. The centralized server forbids the gamers from buying and selling assets outside the game platform. This means players don’t own any gaming virtual assets they have. Blockchain will provide decentralized control and full transparency of virtual assets. This means players have full ownership of virtual assets. It will also allow gamers to use assets across different platforms to allow for a more personalized game experience.
2. More Exciting Gaming Universes
Blockchain will allow gamers to use characters and items across several different games. Data will be verified through smart contracts to make this possible, providing parallel and more exciting gaming universes.
3. Accountability and Credibility
Blockchain records all transactions and isn’t allowed to be altered without the authorization of most of the network. This allows players to use accounts across different gaming services that will track and document all interactions.
4. Game Security
Gamers will work hard to get ownership of virtual goods on these platforms. However, fraudsters will copy a virtual product from the game and sell it, which will decrease the value of the asset. Blockchain will create a ledger to prevent any illegal stealing or trading of goods.
5. Value of Gaming Items Increases
With more security, the value of gaming items will increase. Blockchain creates more value by creating new ways of using virtual items in and out of games. It will also create platforms that allow gamers to sell virtual items for fiat cash. Creating a virtual space that promotes sharing, gifting, and trading virtual items will also increase the social value of these items.
6. Secure Storage
Storing game items are important and blockchain guarantees gamers have a secure and safe way to store game items. If data is in the blockchain, then hackers don’t have a way to get to it. Blockchain will permanently ensure the safety of any virtual items.
7. Regulated Gaming Economy
The issue with any heavily regulated economies is that it creates black markets, and this isn’t good for anyone. Game developers lose the capacity to control parameters of the trade and lose out on potential revenue. However, blockchain doesn’t require any policing and still allows developers to collect royalties for trade across the gaming platforms. As a server owner or developer, you can decide whether you allow the trading of items without any restrictions or if you want to stop selling assets.
8. Rewards for Interaction
Blockchain can provide tokenization for gaming platforms. This allows gamers to earn tokens for reviewing, playing, and sharing the game on social media platforms. Gamers can also get incentives for providing feedback and reviews for developers.
9. Faster and More Transparent Payment Method
Blockchain will provide a faster and secure method of a transaction between developers and players. The faster payment will allow developers to reinvest in another game. This also provides access to multiple revenue opportunities for gamers.
10. Micro-transactions in Gaming Industry
With affordable and quick ways to make payments, it will allow developers to find better ways to monetize the game. It will also give gamers more justification for buying in-game items. Microfinancing features that are included in games through blockchain include games providing cheaper power-ups for gamers, which encourages more users to purchase these items. It can also set automatic options in-game transactions that can allow gamers to automatically transfer money. This all results in a turnaround for monetization goals and it’s no longer about serving the few. Instead, it’s about serving the many. With blockchain, the expected gaming industry revenue in 2021 will have exceeded $132 billion.
To allow gamers to fully adopt the technology, the challenges will need to be addressed. One of these challenges is the limitations of games that are developed on the blockchain network. Another issue is that network speeds are not fast enough.