According to Newzoo, games, and E-sports analytics firm, on an estimate, the total number of gamers is about 2.5 billion, suggesting that 1 in 3 people play video games. Also, Gaming is one of the fastest-growing industries in the world right now. Blockchain gaming is playing an essential role in this growth.
Are you a gamer, Crypto savvy, a Blockchain enthusiast, or a total beginner? In this post, I will be giving you everything you need to know about blockchain gaming. So, stay tuned.
Before I go on let’s briefly talk about some basic concepts.
What is Blockchain?
A Blockchain is a database that uses the Decentralized Ledger Technology(DLT) to store data in a shared manner. Also, the DLT is built on a Peer-to-peer network, whereby the nodes(participants) on the network keep the same copies of the database on their storage devices.
The core attributes of this technology are Decentralization, Immutability, and Transparency.
Now, let’s move to the main concept of today.
What is Blockchain in Gaming?
Blockchain in gaming can simply be explained as the implementation of the aforementioned attributes of Blockchain Technology into the gaming system.
Before I go on, did you know that gamers were among the first users of cryptocurrencies? Yes, they were. This was because gamers were already using in-game virtual currencies to purchase game objects, and saw cryptocurrencies as a better option.
Take Cryptokitties for instance, which is one of the earliest and most popular Blockchain games, players are able to buy, breed, and trade unique virtual kittens with ether(Ethereum’s cryptocurrency).
These virtual cats carry a unique number and 256-bit distinct genome with DNA and different attributes (called cattributes in the game). When breeding several will be passed down based on the cattributes of the cats breeding.
A CryptoKitty’s ownership is tracked via a smart contract on the Ethereum Blockchain.
It uses non-fungible tokens(NFT’s) since each digital kitty is unique.
According to Wikipedia, on May 12, 2018, a CryptoKitty was sold for $140,000. Hmmm…that’s quite expensive for a digital cat, you would say. But, that actually shows how successful they were.
Note that all these could to summarized under one name, Crypto collectibles which is the core application of Blockchain in gaming.
Crypto collectibles are in-game objects that use Blockchain to achieve the following:
- To ensure that the player, rather than the game provider owns the objects.
- To guarantee the scarcity of the object.
- To assure the player that the object is unique and not duplicatable.
To better understanding, let’s see the benefits of Blockchain in gaming?
Benefits of Blockchain in Gaming
The following benefits revolve around Crypto collectibles.
Decentralized Asset Exchanges
As you all know, a common problem of conventional gaming systems is the inability to prove the origins of specific virtual items.
But, guess what!! Blockchain brought a solution.
Smart Contracts, which were first built by Ethereum(an open-source blockchain that allows developers to build Decentralized applications), allow developers to code in simple contracts in order to automate tasks without the need for intermediaries.
Thereby, making users confident that they are receiving original items since they are stored on the Blockchain.
Are you still wondering why users are confident about receiving items from the blockchain?
This is because, by design, every block on the blockchain has perfectly unique values called hashes, which serves as an identifier, therefore, uniqueness proves the origin
Before now, players were unable to sell their assets for money, or use them in other games or even trade them for other games.
But, with the integration of Blockchain in gaming, players can now sell their assets in a decentralized way, rather than pay middlemen to facilitate transactions.
Thereby, allowing players to create secure and fast transactions.
Easy Monetization by Developers
Imagine spending wholesome hours building a game, then people get to play it for free. Gamers can relate. It actually sucks!
But, with Blockchain in gaming, developers could embed rules into their paid assets that enforce a transaction fee upon each transfer of the assets. Or even create paid assets themselves. I think this great.
I think Cryptokittens would be a perfect example. Wouldn’t you love to make such money from your game? I sure would.
With the awesome DLT behind Blockchain technology, leaderboards would be more authentic.
And, due to its decentralized nature, gamers from around the world could be ranked correctly, without any form of falsification.
Increased Players Engagement
Using normal human psychology, whatever you place value on, you would have to like it and whatever you like, you will spend more time on it. Voila. That’s it.
For instance, Azarus, a gaming platform, runs a challenge network on Twitch streaming that rewards player for watching their favorite e-sports streams with the AZA tokens that can be redeemed for in-game goods and items.
Also, the higher the engagement rate, the higher the Average Revenue Per Paying User(ARPPU).
What’s Next for Blockchain Gaming
While the combination of Blockchain and gaming holds great potentials, they are stills challenges facing its development; just like any new innovation.
Although it’s striving, it needs to overcome most of those challenges in order to reach mainstream adoption.
I hope this gives you an idea of what blockchain gaming is all about. If you have any suggestions or questions do well to drop that in the comment section below.
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