There could be no doubt that the gaming industry will continue to scale and mature. According to 2019 Global Games Market report, there are now more than 2.5 billion gamers across the world. It is by far the largest entertainment industry.
As technology evolves, blockchain gaming and crypto assets have been emerging and slowly creeping into the gaming industry. While the current state of blockchain gaming is very much nascent, this statement won’t stand for long. Game developers are looking at blockchain as a solution and enhancement for current games, and companies are aiming to collaborate and invest in blockchain games. At the same time, gamers are becoming enthusiastic about digital assets.
The gaming industry has consistently garnered a lot of attention, and luxury brands are now venturing into this industry as well. Louis Vuitton is the latest to hop on board as they are making virtual items for League of Legends, one of the most popular games in eSports.
The problem with current virtual items is, there has always been a demand for game items and people are willing to spend truckloads of money on them. You can see that there is a lucrative market for virtual items but there are many complications as well.
For huge purchases, the risk of a scam will indeed be higher. In fact, transferring huge amounts of money might be a problem due to bank regulations and will take time to process. Besides that, most virtual assets do not serve any additional utilities. Have you ever felt that if the gaming company allows creating rarer forms of in-game assets, then the game would be a lot more fun playing?
Most virtual assets do not have value after you purchase them. Be it a character or upgrades, there is no other way for players to sell or trade the item with other players. The items you buy in-game are rarely convertible into cash. Although there are open marketplaces that allow trading of items, it is still not easy to liquidate your game items. Not to mention that players don’t really have ownership to the in-game items. If a game totally crashes the next day, all the progress and items of the player will be lost in just a blink of an eye.
How can Blockchain help?
This is where the beauty of blockchain shines. By converting in-game items into digital assets on the blockchain, magic happens. For players who spend extended amounts of time and money creating intricate worlds within the confines of a game, creating provable ownership of their online efforts would a game-changer. Blockchain technology, through the emergence of Non-Fungible Tokens (NFTs), makes the creation of finite, one of a kind digital asset a possibility.
It is important to note that in the scenario of blockchain-based games, the user retains control and ownership of his creations and acquired in-game items. For instance, Enjin, the leading project in blockchain gaming, has created its own token standard (Erc-1155) for game assets. It also created the world’s most secure cryptocurrency wallet in which you can view your digital assets. In order to use an item in-game, you will just need to link your wallet to the game. Your items do not need to be transferred in-game and you will maintain ownership at all times. Even if the game gets deleted or shuts down, your digital assets will still be alive.
Due to game items being on the blockchain, there can be various use cases for them. Taking into example, Enjin, Cocos-BCX, MCH+ all adopt the idea of multiverse items. It works the following way: one item (a sword, for instance) from a game can be used in another one as well (as a shield, for instance). Many games have adopted this concept and even added more benefits for their founder token holders. Some games provide early access while some give founder tokens a special ability in-game. It’s like generating interest but in the form of digital assets.
Most blockchain games run their own marketplace for their players to trade-in. Players can easily sell their in-game assets for crypto in which they can liquidize, simply put, cash out. CryptoKitties is one of the best innovations of a game built on blockchain that lets you acquire, breed and sell virtual cats, sometimes for serious cash.
Transactions containing huge amounts of money can be easily carried out due to the nature of blockchain. Both parties can be sure to receive their agreed terms as no one will be able to disrupt the smart contracts that carry the trade out. Furthermore, blockchain gaming accounts are way harder to hack. Most game accounts will be linked to your crypto wallets directly in which you have full control of.
The mixture of blockchain technology and gaming holds an incredible guarantee for the development of the two businesses. The crossing of blockchain technology, gaming, and cryptocurrencies are promising. Combined with the fleeting ascent of eSports and an opportunity for developers to adapt and participate in the gaming network, will assuredly encourage the new gaming sector.
Virtual reality and e-sports constitute an important emerging section of the blockchain gaming market. At the cutting edge of innovation, the combination of blockchain technology, game theory, artificial intelligence, and virtual reality is exciting to many, and where the industry will head in the next decade is a whole new level. The decentralized virtual reality game Decentraland is an early example of this intriguing new intersection of technological innovation.
In conclusion, game industry development and the software application development tools that are running in line with it, appear to go through a paradigm shift of reinvention every decade. And so, perhaps blockchain in your game is the next big thing.