Did you know that compared to 2021, blockchain gaming activity increased by 2000% in 2022? Blockchain in gaming is a reliable asset that has received more than $2.5 billion in investment from VCs and other international investors, despite the industry’s difficult micro- and macroeconomic conditions.
Additionally, the metaverse ecosystem has given games additional opportunity to shine in the blockchain universe while at the same time, development activities for gaming dApps continue to rise.
The potential of the fast developing decentralized metaverse to dominate the $8 trillion industry has also been estimated by some financial organizations. The key aspect promoting this kind of business expansion is the incorporation of Blockchain technology into gaming applications.
The concept of putting significant in-game assets on the blockchain has people fascinated. Once purchased by players, these assets can be traded for money, and game app creation companies can establish durable platforms on which other creators can expand. Although these concepts appear very intriguing, the industry is still developing and has a unique set of challenges.
We will explain everything about the realm of blockchain game development services to you in this article. But first, let’s understand what blockchain is and how it’s used in the gaming sector before moving on and getting into the specifics for the same.
How Is Blockchain Utilized In Gaming?
Blockchain is a digital ledger that is distributed and decentralized, allowing for safe transactions and record-keeping. For businesses and gamers that use NFTs and cryptocurrencies to buy in-game assets that could be converted into real money, it has created a unique gaming experience. For instance, Axie Infinity has millions of players worldwide who use cryptocurrency based on Ethereum.
Role Of Crypto In Gaming
The gaming business has helped cryptocurrency grow in sophistication. Digital money known as cryptocurrency employs encryption to safeguard, confirm, and speed up transactions. Users are able to pay online without using conventional payment methods like banks or credit card firms.
Non-fungible tokens, or NFTs, are digital assets whose ownership is unquestionably establish by the evidence of ownership that is maintained on the blockchain. NFTs can now take on any form thanks to Web3 and the use of blockchain in games, including but not limited to memes, movies, GIFs, photos, and other digital assets. NFT game development gives players a means of actually owning their digital things. Due to the lack of a middleman like another player, players have more influence over what happens to these objects and can trade and sell them more easily.
Blockchain has spawned a brand-new category of video games called “Crypto-Games.” Games that allow players to earn cryptocurrency (or digital currency) while playing the game set them apart from typical games. These games’ cryptocurrency can be exchanged for real money or used to purchase additional in-game goods. How does this operate?
You receive a cryptocurrency as a reward for starting a crypto game that can be utilized in the “real world” instead of the game. The goal is to motivate players to keep playing by offering them a reward in bitcoin that they can use to purchase products and services in the real world.
Virtual competitions and events are essential to the broader gaming industry. They have been held all over the world for decades, and handling the teams, prize money, and event spaces demands a lot of resources. However, this procedure has been fraught with difficulties, including exorbitant registration fees, expensive tickets, limited bandwidth, cybersecurity issues, etc. It is also difficult to confirm the rewards that participants receive.
By enabling the capacity to track and verify who has received compensation for their victories in matches or competitions, blockchain technology can simplify this procedure. Blockchain technology is decentralize, provides safe user-to-user transactions, and monitors data from any network where it is used. Therefore, blockchain technology makes it simple for gamers to take part in online competitions and events.
A Newzoo analysis claims that by 2023, in-game purchases will increase mobile platform income by 9.6%.
While the methods mentioned above are a few that let gamers earn virtual currency safely, there is no denying that blockchain technology is revolutionizing the gaming sector. How? Let’s investigate.
How Is Blockchain Technology Impacting The Gaming Sector?
It is clear that Blockchain technology has been around for a while, but recently it has attracted greater attention because of its potential to revolutionize many different industries. It has become the top option for the gaming industry in recent years due to its advantages in several industries.
Some of the advantages of blockchain that are transforming the gaming sector and enabling the development of blockchain games include:
Transactions That Are Transparent And Safe
Blockchain ensures that there are no double purchases or other types of transaction record fraud by being transparent, secure, and immutable. It gives users more assurance when making digital purchases and makes it perfect for games where players exchange private information or virtual goods, like in the case of NFTs.
Better User Experience
Blockchain offers a more effective, safe, and transparent means to conduct digital transactions and gain access to virtual assets, which can assist to enhance the user experience overall.
Users have more control over their gaming experience with blockchain gaming. This trend has shown itself in a variety of ways, including by letting players design their own characters, plots, and even gameplay. They can download multiple video games in different versions from anywhere without endangering their gaming experience thanks to this as well.
A blockchain gaming platform aids in ensuring the legitimacy and veracity of all exchanges and interactions between parties. This aids in preventing fraud, which is among the most prevalent problems in today’s gaming systems. Businesses can use Blockchain to ensure that no person or party has been paid twice for the same service or goods because each transaction is recorded, in addition to using it to verify transactions.
By completing missions and objectives, players can receive prizes in the form of cryptocurrencies. In conventional games, winning players receive points that have no worth outside of the game. However, consumers can earn cryptocurrencies through blockchain-based games that they can then use as real money to buy goods from other gamers or even through e-commerce websites.
Integrating Gaming Profiles
The popularity of blockchain games makes it possible to establish a centralized community where players may access a variety of games. Users can have a single profile they can use across several platforms, which improves user experience and makes it simpler to access different games and make purchases.
Compared to traditional gaming, blockchain gaming has dominated the whole gaming sector. While employing blockchain technology in gaming has numerous advantages, it also has certain drawbacks.
Limitations Of Blockchain In Gaming Sector
However, the adoption of blockchain technology has brought new obstacles as well as opportunities for a variety of enterprises, including:
Crypto games are challenging to play because of the gaming method rather than their plots. A player must create a user account, which is a simple process, in order to begin a game. The next difficult step is for a player to create a cryptocurrency wallet and purchase a specific amount of cryptocurrency, depending on the type of Blockchain game.
With new games and platforms being develop on a regular basis, the gaming industry is extremely competitive. Blockchain-based games may find it challenging to compete with traditional games as a result.
In the market, a lot of Blockchain-based games have been developed. Let’s give real-world examples of the best blockchain games now that you are aware of the advantages and restrictions of blockchain technology.
Real-World Examples Of Blockchain Gaming
Video games made on this technology are known as “blockchain games.” In other words, they are stored on a blockchain, and every system in the gaming cluster has a copy of them. They allow users to transact online with other users to purchase or sell cryptocurrencies, NFTs, or other blockchain-related items. There are hundreds of blockchain/cryptocurrency games available, however a few are particularly well-liked ones:
CrytoKittes is one instance of a gaming crypto video reconstruction. One of the world’s first attempts to establish a blockchain-based game was in November 2017. It has currently risen to the top of the list of Ethereum games in popularity. The basic objective of the game is to breed kittens with distinctive qualities to increase their value.
Players can store their cats until they become valuable or trade them in an open market. The genes that make up each cat’s personality are responsible for qualities including hair pattern, eye shape, jaw shape, base color, and accessory color.
Decentraland is the first concept that comes to mind when discussing blockchain in the world of gaming. Blockchain technology is use by the virtual reality platform Decentraland to build a decentralized virtual environment. Users of the platform can produce, consume, and make money from content and applications.
It is a collectible card game that tracks card ownership using Ethereum. Gods Unchained cards are exclusive and precious since they are digital assets that cannot be reproduced or altered without the owner’s consent.
Additionally, players can exchange God’s Unchained cards directly with one another outside of the game’s marketplace, and because the Ethereum blockchain safeguards them, hackers cannot access them.
The Last Will
A blockchain-based game called The Last Will lets gamers inherit the virtual goods of other players. The game, which is based on the Ethereum blockchain, lets players create trusts, designate executors, and make wills.
FIFAcoins4sale is yet another outstanding example of blockchain in gaming. It is an online store where players can purchase and trade virtual goods for the well-known football video game FIFA. The website employs a decentralized marketplace so consumers may purchase FIFA currencies without being concerned about fraud or scams.
Other well-known cryptocurrency games include Age of Rust, Axle Infinity, Illuvium, The SandBox, Mirandus, and so on. These top cryptocurrency games have revolutionized blockchain-based gaming and given players more control over their in-game assets.
How Blockchain Is The Next Big Thing In The Gaming Industry?
Blockchain appears to have a promising future in the gaming sector. We can anticipate seeing more blockchain-based games and platforms in the future as more companies investigate the technology.
Web3 gaming, according to the reports, will revolutionize the gaming environment by giving users ownership of gaming assets and the power to make decisions, further removing them from a single central authority.
Now, major investors are placing large bets on Web3 gaming. According to a recent study from Dappradar, $748 million was invested in the creation of new Web 3 crypto games in August 2022. As a result, we can easily forecast the future and how web3 gaming will influence it.
It is crucial to realize that web3 won’t significantly alter the game’s quality. Simply put, it will create new possibilities for including financial systems in the game. The gaming ecosystem will advance to a new level thanks to the underlying blockchain technology, which will be further dominated by gaming cryptocurrencies for secured payment rails and ownership of digital assets.