In this blog, we will explore, whether blockchain applications can indeed revolutionize the gaming industry by addressing its various challenges, or is it just hype?
As per Newzoo, the gaming market may generate $159.3 billion in revenue this year. It will account for 9.3 percent year-over-year growth. Also, Newzoo estimates that the industry can exceed $200 billion of revenue in 2023.
Significantly, these numbers highlight that people love playing video games. Also, during the pandemic, due to preventive measures like lockdown and home quarantine, gaming has experienced mass spikes in usage.
No organization understands this better than Netflix, the video-streaming giant. Last year, Netflix intimated investors that it has no plans of looking over its shoulder at the rivalry emerging from other streaming platforms such as Hulu or HBO Max. Netflix said that coping with Fortnite, a combat game that now draws the interest of more than 200 million players, is more interesting.
Not only is Netflix a little worried about the soaring popularity of Fortnite and its parent company Epic Games, but it has also put some gaming and entertainment companies on alert.
We can understand why Ubisoft, the business that launched Assassin’s Creed, a game series estimated at more than $300 million, recently revealed in its incubator program that it is planning to employ blockchain entrepreneurs.
But, why does a gaming corporation want to get involved in blockchain app development? The company sees a young ecosystem flourishing in several different ways, enabling new avenues to imagine gaming partnerships, including ownership and transfers of virtual objects, transaction security, and other opportunities that a cryptocurrency may provide.
Today, centralized business models share a majority of video gamers. It means that all game-related information remains stored on a server entirely managed by game managers. It usually involves account information and server history, used to track and preserve all player-collected activities and in-game properties (such as collectibles, objects, and virtual money). As a single entity manages the inventory, players hardly get actual ownership of their accounts and products. There are also weaknesses and bugs on centralized servers, which may include:
In other words, the control is in the hands of the corporations controlling the gaming industry. However, thankfully, blockchain technology-based solutions can address these challenges efficiently.
Few of us expend a lot of time and, often, money on a game to gain valuable items. Still, there’s always the worry that we could lose it someday. This outcome can result in many scenarios. The game maker might go out of business, or we might be banned from playing the game by any central authority. This happens all the time, as these automated valuables are not owned by us. All are on a single site instead.
Suppose, in a single game, you’ve wasted a lot of time and money getting a sword. You’ve finished a game, and you want to move on to the next one. In the current game, you will not use this weapon, since it does not belong to you (even though you invested time and money purchasing it). In another game, you can’t trade that for anything else, too.
There are different servers for distinct regions in an MMO role-playing game. Besides, several sub-servers are required to build the whole system. Thus, various servers are used if there are players from different locations. Often, a wide region lacks access if one computer crashes.
The strength of decentralization and extremely resilient data protection techniques is given by Blockchain, making it virtually impossible for hackers to produce, erase, or alter current data through the server. This guarantees that both game entrepreneurs and players have a stable atmosphere, which further leads to improved outcomes.
In the gaming industry, one of the key benefits of blockchain technology is that it offers game players an ability to own their digital properties.
To handle all the transactions inside the game, a blockchain-powered game uses smart contracts. These intelligent contracts are immediately performed based on the criteria coded in them, and the transactions are void of nature. Thus, when you start a blockchain-based app, all of the in-game properties that players have purchased using smart contracts are immediately passed to their public addresses. In this way, intelligent contracts make it possible for them to completely rely on their digital properties.
In addition to this, no overarching entity engages in the application of smart contracts. This means that no one can modify the public address where the in-game properties are kept, which further suggests that no one can illegally change the ownership of those properties. They remain the property of the player of the game to which they belong.
Last but not least, blockchain technology integrates into the gaming industry the potential of smart contracts, which offers greater ways to build requirements for ‘IF-THEN-ELSE’. And in this manner, discover new ways to generate and boost higher sales for rare digital collectibles. CryptoKitties, the marketplace where smart contracts end in the breeding of rare kittens and attract a higher sum of cash, is a prime example.
By incorporating a tint of interoperability to the process, blockchain technology is another way to improve the emerging gaming sector. Let this be clarified in-depth to me.
Cryptocurrency traders and investors historically rely on a shared address that can be used in the blockchain community to enable cross-platform transactions. Similarly, if a developer creates an application, game players will imagine accessing the next gameplay stage with a specific email address. Because of this, a player playing an online game, for example, will use the same public address to deal with multiple games.
Collaboration is another game sector where blockchain will prove to be a highly successful weapon.
Previously, there was only some point of contact between game players and the developers that created it. Because of this, developing a gaming engine that provides the former with a highly engaging environment has become very challenging for the latter.
But the distance between the two, with the help of the blockchain, has filled somewhat. The power of consensus mechanisms in the process was introduced by Blockchain-based applications that enable players and developers to explore brilliant ideas to enhance the experience of games.
Blockchain technology is revolutionizing the gaming industry in various ways, as we have seen in this post. It has not only moved the fans but also drawn the interest of gaming companies and entrepreneurs to discuss the blockchain market and get a bigger slice. The one that is projected to rise during 2016-2023 from USD 210.2 Mn to USD 2312.5 Mn.