Will blockchain cope with the challenges of the gaming industry

Colin Baseman

Blockchain is spoken about mainly only in the context of cryptocurrencies, but the DLT technology itself has already proven itself in various areas and has managed to prove its effectiveness. Of course, cryptocurrencies are by far the most well-known way to use blockchain, but the potential of this technology is much more than just serving as a means of payment.

The gaming industry has always looked quite controversial due to a number of problems. Players are often concerned about data protection, fraud, high commissions, and most importantly, data manipulation by gaming companies. 

Blockchain + Game industry = Level up

Now there is an opinion among developers and management of the gaming industry that blockchain can successfully resolve these contradictions and bring the industry to a new plateau of sustainable development.

The reduction of fraud

The gaming industry is quite susceptible to online fraud, and therefore blockchain is primarily needed in games that use random number generation as the basis of the game process. First of all, this is the gambling industry - online casinos and lotteries. 

Here, the strengths of the blockchain serve as a solution to all problems - ensuring reliable encryption and immutability of data that is publicly available, which is completely transparent to the user. 

Since, in principle, it is impossible to disrupt the decentralized network, change or delete the entered information, it is possible to ensure that the player's data is safe. 

Making in-game purchases

Currently, in-game transactions are especially popular, as this is one of the main methods of monetization of games, which allows not only players to interact, but also to develop the game industry.  

If you are interested in games, you know that by transferring real money to the game, you get an internal currency that is completely controlled by the company. The user does not own their assets, and developers can easily change the economy of the game and the game itself, and the result is not quite what was paid for in the beginning.

For example, in games such as EVE Online and World of Warcraft, there have been numerous disputes that developers exclude entire game currencies or, allegedly, create inflation by incorrectly managing supplies. Some MMOs are often subject to hacker attacks and hacks.

Cryptocurrency can be used as a game currency that is actually in the hands of players. For the first time, blockchain allows a real economy with real money to be managed exclusively by players without an authoritative figure controlling everything from behind the scenes.

 Game accounts compatibility

How many games are installed on your phone? What games do you play in your browser or on your PC? 

If you like games, like to play quality, then invest in your favorite games, develop a character or account. After a while, any game gets boring or is postponed for some reason, and all the resources remain in it, without the ability to withdraw them or use them elsewhere.

The introduction of cryptocurrency and blockchain solutions will allow players to transfer their unique ID address from one game to another. This means that they will be able to make cryptocurrency transactions in different games from the same account, which allows for flexibility and cross-platform compatibility, which many times exceeds the capabilities and limitations of existing centralized solutions. 

This is my property, even if it is virtual!

In most existing games, in-game resources are not the property of the players. A distinctive advantage of games using blockchain is the ability to truly own your assets. 

CryptoKitties was the first blockchain experiment of its kind in which an in-game digital asset was sold for $ 170,000. Since the buyer was the true owner of the digital asset, not the company, a real market can be created for this type of asset.

Of course, at the moment, the applicability of blockchain in games is still in question. Some game projects just “asking” and the use of new technologies gives them a chance for growth and development. Of course, the casino and any gambling games get the maximum benefit from this (and some games,  in fact, can not exist without the blockchain, initially staying in the gray legal zone). Others are still experimenting, sometimes using only a hype from all technological perspectives. 

At the same time, there are many projects on the market, even if a small part of them will come out with something - this is enough for a generation of games with organically built-in blockchain capabilities to appear in a year or two. And we, the players, could not imagine a gaming life without blockchain.