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Is Blockchain The Future Of The Online Gaming?

Over the years, the gaming industry has grown to become a major part of the world economy. According to reports, the gaming industry generated around $90 billion in revenue, with more than 2.5 billion players in 2020 alone. Moreover, industry statistics show that VR gaming is about 20 times more profitable in comparison to traditional games, and players spent a whopping sum of $4.5 billion on VR games in 2020. The future of the gaming industry looks bright and promising. In fact, studies show that the gaming industry will reach the $256.97 billion landmark by 2025.

All these statistics show the immense growth of the gaming industry. However, with the rise of the gaming industry, the demands of the players are also increasing. Whether it's mobile, console, or PC, gamers are actively trying to find ways to enhance their overall gaming experience. This pushes the developers and companies to come up with new and effective ways to optimize the user experience. That’s where Blockchain comes in.

Blockchain technology is revolutionizing the gaming industry and paving the way for major improvements in online interactions and online economies to enhance the overall experience for gamers. Most importantly, Blockchain is setting the foundation to take VR gaming to a whole other level with the introduction of Metaverse. In this article, we are going to discuss how Blockchain is revolutionizing the gaming industry on top of analyzing the future of this technology in the gaming sector. So, without further ado, let’s dive into it!

What Is Blockchain, And How Does It Work?

In simple words, the Blockchain is a distributed ledger that records all transactions made by network participants. Blockchain networks are supported by a network of computers (called nodes) located all over the world. It works on a peer-to-peer model allowing each node in the network to initiate or validate new transactions. To make things even more simple, you can think of Blockchain as an immutable database that is distributed across a network of computers.

All the data sent over the Blockchain network is organized into blocks, which store the data until they are completely full. When a block is full, it is closed and linked to the next block that stores the upcoming data, and this process keeps on going to store new information in the Blockchain. From the very first to the very last block, the blocks are linked together like a chain. The beauty of Blockchain technology is that it allows a transaction/record to be added to the database only after the consensus of all the nodes in the network, and once it's in the database, it cannot be altered.

All the major cryptocurrencies, including Bitcoin and Ethereum, are established on Blockchain Technology. However, the use of Blockchain is not limited to just cryptocurrencies. In fact, Blockchain has infiltrated almost all industries and disrupted the business world by bringing security, transparency, and efficiency. The same goes for the online gaming industry as well. Blockchain in the online gaming industry has changed the entire user experience, including the way people play and compete against each other, as well as how they purchase in-game content.

The Issue With Game Currencies:

Typically, online games have several in-game purchases that players can get by using the game currency to enhance their gaming experience. For instance, 8 Ball Pool, a famous game from MiniClip, has 2 types of game currencies: Coins and Cash. They also have a marketplace in the game where you can purchase different items, including a wide variety of sticks, using the game currencies.

Now, there are 2 ways for a user to get the game currency to use in the marketplace. The first one is to stake their current game currency in 1-on-1 games and tournaments to earn more game currency. The second one is to simply buy the game currency using real-world money. The same model applies to almost all online games.

The problem with this model is that some players spend hours playing the game to earn enough game currency to purchase their desired items, while others simply pay the real-world money to get the same or even higher number of game currency in literally no time. To be honest, this is not a major issue. Of course, people who are willing to invest their money should be given some extra perks.

The real problem is that this is a one-way process. This means you can convert your real-world currency into the game currency but cannot do it the other way around. As a result, players who invest their time and/or money into the game get nothing but personal satisfaction from their gaming experience, and that too for a limited time.

Just imagine playing an online game and investing hundreds or even thousands of hours into it to become one of the best players. Now that you have become a champ, what does this game give you other than personal satisfaction? Eventually, you would most probably quit the game as well. So, what would happen with all the game currency you had earned with sheer hard work and dedication? Also, what about all the exotic and rare resources you have collected and purchased in the game? It’s all going to be wasted.

How Can Blockchain Help?

By now, you are already aware of the flaws in using the traditional game currency in online gaming. Now, what if I tell you that you can cash in your game currency along with all other game resources/assets you own? Yes, you read that right, and it’s all possible with the Blockchain. Integrating Blockchain in online games can actually help gamers earn money by doing what they love, i.e., playing games. With Blockchain, you can develop a native cryptocurrency for your games to replace the traditional game currency.

Introducing native cryptocurrency in online games will allow gamers to exchange their currency with any other major cryptocurrency like Bitcoin, Ethereum, etc., on top of allowing them to withdraw their earnings in any real-world currency like USD. Moreover, introducing Blockchain in online games can transform your traditional game assets into Non-Fungible Tokens (NFTs), giving them the value of a truly digital asset that can be minted, traded, bought, sold, or even mutated to enhance its value.

Most importantly, this can help gamers to actually own everything in the game, which will push them to spend even more time playing. Moreover, it levels the playing field for every player on top of ensuring that the players spending more time and players having exceptional skills will be getting more rewards. Lastly, Blockchain can help verify the true ownership of any asset on top of keeping a record of each and every transaction happening within the game. All in all, Blockchain can take the gaming experience of online games to a whole other level.

Is Blockchain The Answer To Online Gaming?

After seeing how Blockchain can help gamers earn money, if you are still wondering whether Blockchain is the answer to online gaming, then the answer is Yes. The impact of Blockchain Technology is already being felt in the industry. That’s why game developers are now building Blockchain-based ecosystems and encouraging players to be more active by offering them reward programs. The juicy part of this deal is that Blockchain eliminates the need for a third party. This not only gives you full control of your transaction but also offers absolute security and transparency.

Benefits Of Blockchain In The Gaming Industry:

As mentioned earlier, Blockchain is revolutionizing the online gaming industry by offering countless benefits. Here are some of the most prominent benefits of Blockchain in the gaming industry:

1. Enhanced Gaming Experience & Fraud Prevention:

One of the factors that constitute a better gaming experience is the process of developing your gaming skills and working hard to attain new levels and features in the game. However, this fun and exciting experience has been limited by the introduction of cheat codes. Over the years, we have seen people making quick bucks from creating and selling cheat codes to gamers. This has become a major challenge to game developers in providing a better gaming experience.

However, with the introduction of Blockchain technology in online gaming, it is possible for developers to create reliable servers that are immune to cheat codes and all other kinds of frauds. This is possible because of the decentralized nature of Blockchain technology. In simple words, Blockchain keeps track of every transaction in an open ledger allowing everyone within a gaming community to see all transactions. With this feature in place, game servers can become immune to fraud as developers and players can easily detect and block any illegal transaction.

2. Authentic Ownership Of Gamers Assets

In traditional games, developers have full control of everything, and they can delete game items as they see fit. However, Blockchain has allowed the gamers to take charge and become the true owners of their in-game assets, making it impossible for developers to delete items as they wish. Blockchain technology has also made it possible for gamers to earn money while having fun. Gamers can now sell or trade in-game items on Blockchain platforms for other Cryptocurrencies. This also allows gamers to turn their gaming experience into a side business and earn a decent income from it.

3. Governance Based on Players

Some developers have become more like dictators due to the fact that they control and possess the authority to make rules for their games. Sometimes these developers make rules at the expense of their players, forcing them to upgrade to newer versions with the threat of canceling their game if they don't adhere. Blockchain gaming has changed this type of governance and put the power in the hands of the gamers.

Now players can decide on the rules they want. For instance, players can conduct voting to pass a rule, and if the majority is in favor of the new rule, it can be implemented. Another threat to traditional gaming is that the developers can simply cancel their games if they are not interested in them anymore. Blockchain gaming address this issue as well. Since Blockchain-based games are deployed on a decentralized server, they can't be canceled.

4. Decentralized Gaming System

Blockchain technology provides game developers with the leverage of running a game economy on Blockchain and hosting other game parts on centralized servers to enhance the security of the game economy. Having the game economy on a decentralized server allows gamers to trade game assets on the same Blockchain platform. Most importantly, this allows gamers to transfer their in-game assets between different games for a better gaming experience.

5. Allow Collaboration Of Players With Developers to Enhance the Game

The bridge of communication between developers and players has been shaking for a long time. However, Blockchain can solidify this bridge. Using Blockchain in gaming has significantly increased the communication between game developers and players. Game enhancement is now a public matter. This means players or third-party developers can make suggestions on the enhancement of a game, and if the community finds it worthy, it will be implemented. This has positively affected the gaming experience.

What's Next For Blockchain In The Gaming Industry?

The future of Blockchain in the gaming industry looks bright. In fact, Asus has partnered up with Crytek (a game engine company) to launch a Blockchain-powered cloud gaming platform that will change the gaming industry for good. This partnership could result in a breakthrough to a new era of gaming with limitless possibilities allowing gamers to play any game on any platform they want. Similarly, there’s a lot of development going on in the gaming industry to incorporate Blockchain into mainstream gaming. Moreover, many individuals and businesses are actively working on improving Blockchain as well. Considering all this, we can safely assume that Blockchain will soon rule the gaming industry, especially with all the work going on in the Metaverse.

Final Thoughts:

All in all, Blockchain technology is a feasible answer to many online gaming problems. The future of the global gaming industry in the context of Blockchain technology is a picture that is impossible to paint perfectly because we haven’t seen its full potential yet. However, we are certain that it's going to be a picture with many beautiful colors. The opportunities and gaming experience to expect from Blockchain gaming in the near future is something that would blow your mind.

If you want to develop a Blockchain-based game, it's the perfect time and opportunity to dive into it now. So, don't wait and let your competitors lead the race. Whether you want to develop a new Blockchain-based game or simply want to integrate Blockchain into your existing game, we can help you out. Here at IIInigence, we stand proud as the best Blockchain Development agency in the USA, offering a wide range of services, including Blockchain consultancy as well as cryptocurrency, smart contract, dApp, Decentralized Marketplace, and Metaverse development.

We have been into Blockchain development for 10 years, and we have successfully developed several Blockchain-based games. You can check out our portfolio and testimonials to get a better idea of our expertise as well as the quality of our work. So, what are you waiting for? Simply contact us today and schedule a call with one of our experts to see how we can help you develop a stunning Blockchain-based game that will become a gold mine in the future.

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