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Introduction
The gaming industry has seen a huge evolution over the last few decades. And with each new technological advancement comes a new round of innovation. From the 2D arcade games we started with, to multi-player cloud-based experiences we are rapidly developing today. And now, the next evolution is happening right in front of us, which is blockchain technology.
Blockchain is growing fast, and it is impossible to ignore the implications it will have, or already provides, in the gaming industry. It is clear blockchain is bringing revolutionary new business models, establishing player ownership. And creating decentralized ecosystems that will change how games are played, designed, and monetized.
What is Blockchain and Why It Matters in Gaming
Blockchain is decentralized ledger technology that digitally records the transaction of assets through a network of computers. Unlike traditional databases that are centralized and controlled by a singular organization or individual, blockchain ledgers are transparent, immutable, and secure.
Gaming, it means players can own their assets directly, developers can create economic systems that are more transparent, and players can interact with each other and games more dynamically by not relying on a centralized party to establish trust.
In a decentralized environment, players know that the assets they own, everything they have worked for, and their accomplishments are trustworthy as nothing can be taken away, or tampered with, because of a centralized server error.
In addition to asset security, blockchain also provides another layer of trust within gaming ecosystems. By being recorded on an immutable ledger, all transactions can be verified; therefore players have more accountability, and developers do too. With that trust comes more collaborative and community driven types of game development models and economies that reward players for their playtime and creativity.
Problems in Traditional Gaming That Blockchain Solves
Even with exponential growth, legacy gaming is still plagued by several major shortcomings:
1. Lack of True Ownership: Players in legacy games do not have true ownership over in-game items. The assets reside on a centralized server. Which means they can be modified, revoked, or destroyed by the company at their discretion.
2. Lack of Transparency: The in-game economies and currencies are opaque, and players have no transparency in terms of how items get prices, and how in-game currency is monitored or spent.
3. Fraud and Duplication: The black market for virtual goods has a number of scams and duplicative hacks.
4. Server Dependencies: When a game server goes down or a game’s support is canceled, all player progress and purchases are completely lost.
With blockchain, players have less dependence on any central authority, and they maintain complete, true ownership over their digital assets. Additionally, peer-to-peer trading is completely secure, and players can trace the history and legitimacy of every asset that they purchase, greatly reducing the risk of fraud or scams.
Key Ways Blockchain Is Transforming Gaming
a. True Ownership with NFTs
Central to the development of blockchain games are non-fungible tokens (NFTs). NFTs allow players to own in-game assets as unique, tradable digital assets. Whether it’s a sword, character skin, or collectable, players can buy, sell, and trade NFTs in the open market, away from arbitrary limitations of the game’s internal systems.
While in-game assets on traditional, non-blockchain games are only tangible on the screen (cosmetic or symbolic), the digital assets represented by NFTs have real-world value. Players who put time, effort, and even capital in a game are rewarded with the opportunity to monetize their achievements, becoming real-world investments.
b. Play-to-Earn (P2E) Models
The play-to-earn model popularized by games like AxieInfinity rewards players with cryptocurrency or NFTs for their contributions and achievements. This shift in the gaming economy turns gameplay into an income-generating activity in addition to being an entertainment activity.
Blockchain and the earning potential through gameplay open up opportunities for developing country players, students, and casual gamers to make income and ensure even wider access to financial empowerment through gaming.
c. Interoperability Between Games
Blockchain allows assets to move freely between games and platforms. A player may use the same NFT avatar across many titles, creating a network of games in a metaverse. This sort of interoperability has never before been achieved, let alone on such a scale, in traditional game development.
This model adds value to and creates new intermediaries for digital asset collaborations. It also creates a better experience for players by allowing them to connect with different games at the same time.
d. Decentralized Gaming Economies
Blockchain empowers players through decentralized game economies. Smart contracts manage transactions in a less secure manner in addition to eliminating the need for moderators. Players are allowed to participate in governance models for games and vote on updates to the game and economic changes.
This transition promotes more transparency and places players in control of the evolution of their games. Leading to the formation of stronger and more engaged gaming communities.
e. Enhanced Security
Because of the immutable characteristics of Blockchain, assets are safe from duplication and hacking. This security layer makes it exponentially more difficult for malicious actors to tarnish the game or retrieve the valuable assets. This is also a much safer environment for trading and investing in virtual goods.
Moreover, blockchain’s decentralized infrastructure helps to mitigate single points of failure. Even if a certain section of the network gets hacked, the game and its assets will be accessible to the players.
Examples of Popular Blockchain Games
There are several blockchain-based games that already exist:
1. Axie Infinity: A play-to-earn platform where players breed and fight digital pets called Axies. This is one of the most well-known examples of play-to-earn.
2. Decentraland: A virtual world where players can buy, sell, and build on lands that are parcels of land represented as NFTs.
3. Gods Unchained: A trading card game where players own and trade cards as NFTs.
4. Illuvium: A high-quality open-world RPG game where players search the environment and collect (not to mention mint) NFTs from the game.
These games provide examples of how blockchain can take traditional gaming mechanics and shift them into a decentralized model with ownership and economies. The rise of these platforms has created demand for blockchain game developers experienced in the gaming ecosystem to steadily plugin innovative ideas that enable decentralization using blockchain.
Challenges and Limitations
While blockchain gaming has great potential, there are many barriers that must be addressed.
a. Scalability: Most blockchains are constrained to a limited number of TPS which can often lead to delays and high costs.
b. User Experience: Not every user is tech-savvy so learning how to set up crypto wallets, what to do with tokens, or even getting the basics of blockchain down are hurdles that present challenges.
c. Regulatory uncertainty: Governments around the world are still grappling with how to regulate all things crypto and NFT.
d. Quality: With so many new blockchain games, there can be a lot of variance in quality. Not every blockchain game provides the same level of gaming experience, graphics, or player engagement.
Actioning these challenges will require blockchain game development companies, regulators, and the gaming community to work together to continue innovate in a way that is responsible to the user experience and security.
The Future of Blockchain in Gaming
The future of gaming with blockchain is looking incredibly bright. We should expect even deeper integrations of NFTs, cryptocurrency rewards, and decentralized governance structures. With the metaverse taking off, blockchain will play a critical role in defining navigation in increasingly interconnected indeed worlds, allowing for cross-platform growth of digital assets in a manner that is unique and secure.
We’re likely to see the emergence of Decentralized Autonomous Organizations (DAOs). As a new form of game governance, allowing players to genuinely contribute to roadmaps, balance gameplay, and ultimate economic structure. This embeds a robust sense of community, and ownership over a game on the part of players.
With emerging technologies in AR/VR, followed by emerging blockchain technologies, the lines are blurring quickly between digital and physical realities. Blockchain is likely to form a backbone components of digital identity, asset verification, as well as to facilitate secure, borderless trade.
Conclusion
Blockchain is not just a game industry buzzword. It’s a true game changer in how we will develop, play, and monetize games. Blockchain technology enables real asset ownership, and fosters transparency and decentralization in gaming economies. This will set new standards of innovation and fairness in game development.
As more developers jump into it, the need for skilled blockchain game developers and reputable development companies will grow. Companies eager to enter the space need to partner with experienced partners who understand both game mechanic and blockchain intricacies.
There are few names more trusted in the space than Technoloader, a premier blockchain game development company. They covered all bases with their deep knowledge of blockchain technology. A solid track record taking the pain out of complex game development. Technoloader is the answer for developing next-gen blockchain games. If you’re looking for a highly skilled partner to help you with everything from complete game development, tokenized NFTs, blockchain game consultations & more, give Technoloader a call today, to discover what solution they can provide to meet your specific needs.
The team of expert blockchain game developers at Technoloader, leverage their skill sets, deep knowledge, and creative storytelling to make your vision come true. Technoloader also has experience on multiple blockchain platforms which sets them apart from other developers – developers who generally have specific skill sets because of their experiences on one or two specific platforms.
In this new era of blockchain gaming, Technoloader is equipped to provide solutions to billions of players on decentralized platforms.
