In this blog, we will explore the implication of blockchain applications in the gaming industry to address various challenges.
There are almost 3 billion gamers in the world today, according to a new industry survey, and they will spend almost $160 billion on games in 2020 alone.
One unavoidable reality is highlighted by these numbers: people are playing video games.
No organization understands this better than Netflix, the video-streaming giant. Last year, Netflix told investors in a letter to shareholders that it was not 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 200 million players’ interest, is much more interested.
Not only is Netflix a little worried about the soaring popularity of Fortnite and its parent company Epic Games; it has also put some entertainment companies on alert.
It might 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 now employing blockchain entrepreneurs.
Why does a gaming corporation want to evolve into a blockchain app development? “We see a young ecosystem flourishing in several different ways, according to Ubisoft, pursuing new avenues to imagine gaming partnerships, and between them, ownership and transfers of virtual objects, transaction security, and all that a cryptocurrency may enable.”
Today, a decentralized model accompanies the vast majority of video gamers. This suggests that all sensitive information is stored on a server that is completely managed by the game manager.
The information usually involves account information and server history, which tracks and preserves all player-collected activities and in-game properties (such as collectibles, objects, and virtual money).
As a single entity manages the inventory, players don’t have actual ownership of their accounts and products. There are also certain weaknesses and bugs on centralized servers, which may include:
In other words, the control is in the hands of the corporations participating in gaming. Although, thankfully, many of these challenges can be removed or mitigated by blockchain technologies.
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.