Recent transformations in the gaming industry are pretty significant. What was once a leisure activity targeting kids and young adults is now a multi-billion-dollar industry where many brands and entrepreneurs invest. The latest reports show that the gaming industry’s global revenue substantially grew to $347 billion in 2022.
This growth is not merely a historical trend. While already a formidable force, the gaming industry will continue to grow as it adopts blockchain technology. Read this infographic to learn more about the role of blockchain gaming in revolutionising the industry.
What is blockchain gaming?
Blockchain gaming is the innovative integration of blockchain technology into video games. This brand of play redefines how you interact with in-game assets.
Typically, traditional game models let you accumulate virtual items, skins and in-game currency. However, game developers own and control these in-game assets, including your earnings. Meanwhile, blockchain gaming uses the technology’s transparent and tamper-proof ledger to grant you ownership of your in-game assets.
Blockchain gaming interoperability also lets you seamlessly transfer your hard-earned items or currency from one blockchain game to another (assuming interoperability between games). It breaks down the traditional barriers that restrict in-game assets to specific titles. As a result, you are free to explore new gaming experiences while accumulating digital wealth.
5 key differences between blockchain and traditional gaming
You can better understand how blockchain gaming works by familiarising yourself with the features that differentiate it from traditional models.
1. Game economy
Developers often have complete control over the in-game economy in traditional gaming models. Being a player lets you earn, buy or sell virtual items, but these assets only apply to the game where the transaction happened.
In contrast, blockchain gaming decentralises the game economy. As such, you can definitively own and trade your in-game assets across your favorite titles. This fundamental shift allows for more control and value within the gaming world.
2. Monetisation
Traditional games rely on conventional monetisation models, such as upfront purchases or in-game advertisements. Meanwhile, blockchain gaming introduces new revenue streams by creating and selling non-fungible tokens (NFTs). You can buy and sell these unique digital assets to profit from in-game items.
3. Immersive gaming experience
The beauty of blockchain technology lies in the transparency and security it provides. For one, you can verify the scarcity and authenticity of in-game items for a more immersive and engaging experience. The blockchain’s decentralised nature also minimises the risks of cheating and fraud to ensure a fair gaming environment.
4. Ability to trade assets
In traditional games, in-game item transferability is often limited. Luckily, introducing blockchain in video games enables you to change digital assets. Whether it’s a rare weapon, a unique character skin or virtual land, you can buy or sell any asset you want on specialised marketplaces.
5. Game security
As digitisation becomes more prevalent, securing your data online is essential to a pleasant gaming experience. Blockchain introduces a higher level of protection by safely recording each in-game asset in the technology’s tamper-proof and hacking-resistant ecosystem.
7 benefits of blockchain gaming
Blockchain gaming offers several advantages to empower players like yourself while reshaping the gaming landscape.
1. Enhanced security and control for gamers
Unlike traditional models, blockchain gaming affords you complete control and ownership of your in-game assets. You can safeguard your in-game purchases and prevent account access or alterations to unauthorised users through a safe and secure environment created by game developers.
2. Traceable and secure transactions
The recording of every transaction in blockchain gaming takes place on a transparent and immutable ledger. This accurate record trail is vital in reducing or eliminating fraud and scams, which can negatively impact your gaming experience.
3. Authentic ownership and digital scarcity
Using NFTs in blockchain gaming enhances the authenticity and exclusivity of in-game assets. These unique items convey value and rarity within the gaming world. Blockchain transparency mechanisms further complement the legitimacy of such objects to make item selection more convenient for you and fellow gamers.
4. ‘Play-to-earn’ model
Blockchain gaming introduces the concept of ‘play-to-earn’, where you can participate in games and receive real-world value. This financial incentive transforms gaming from an enjoyable pastime into a potential source of income and rewards.
5. Platforms for decentralised gaming
On top of the ‘play-to-earn’ model, blockchain offers a compatible infrastructure for decentralised gaming. These platforms give developers more creative freedom in building unique, player-centric experiences.
6. Interoperable gamer profiles
Blockchain gaming involves creating profiles you can use from title to title. This interoperability streamlines the gaming experience as you seamlessly switch between games while retaining your progress and assets.
7. Safer environment for game developers
While blockchain benefits your player goals, you can leverage this technology’s security features if you are into game app development. You can use blockchain to establish ownership and protect the intellectual property concerning your creation. These factors may encourage growth for the industry as other developers explore blockchain gaming’s innovative and secure ecosystem.
7 challenges of blockchain gaming
Despite its advantages, blockchain gaming faces significant challenges. The gaming community must address these hurdles to advance widespread adoption within the industry.
1. Gamer concerns with non-fungible tokens (NFTs)
As mentioned, NFTs provide unique ownership of game items. However, the complexity or unfamiliarity surrounding blockchain gaming might compel you to abandon exploring this digital asset. If you are partial to traditional gaming models, you might struggle to grasp the value of blockchain-based assets.
2. Limited blockchain-based game options
The number of blockchain-based games is smaller than traditional ones, perhaps due to the former’s nascent nature and the complexity of developing blockchain-integrated games. With a limited selection of titles and genres, blockchain gaming might restrict your choices and preferences.
3. Lack of awareness leading to a low player count
Not everyone is aware of the perks of blockchain gaming. As such, blockchain-based video games may have a lower player count that can limit the ecosystem’s growth potential. That means you might not fully enjoy having vibrant and engaging gaming communities.
4. Requirement for substantial technical expertise
Engaging with blockchain games often demands a certain level of technical knowledge. You must know how to set up digital wallets, manage private keys and navigate blockchain interfaces. These requirements might discourage you from participating in blockchain-enabled games.
5. Scalability hurdles
Network congestion can occur when more players engage with blockchain games. Similarly, computer nodes that take longer to confirm blockchain records can affect transaction processing and gameplay speeds. BSV blockchain has little to no difficulty scaling due to being an interconnected network that massively scales, unlike other protocols that shard their network.
6. Regulatory framework difficulties
Blockchain gaming regulations typically have grey areas in many jurisdictions. Whether you are a developer or player, you might encounter uncertainties as you navigate compliance and taxation requirements.
The BSV Association (BSVA) advocates for pro-regulation policies, emphasising the importance of legal compliance within the blockchain industry for global adoption.
Through active collaboration with policymakers, BSVA helps shape favourable regulations that promote lawful behaviour, innovation and market growth. This process clarifies legal obligations, encouraging accountability and attracting investment through a clear legal framework.
7. Increased transaction fees
Games implementing blockchain technology may require actual currency for every transaction or activity. These fees might prevent you from engaging in microtransactions and affect your ability to afford blockchain gaming. Fortunately, BSV offers low transaction fees, allowing you to send however much money you wish for just a penny on a whim.
Level up with blockchain gaming
Blockchain technology is an asset for the gaming industry. You can make in-game purchases securely and engage in boundless gaming possibilities. Similarly, you can use blockchain to develop an immersive and player-centric gaming experience that transforms pixels into valuable assets.
Indeed, blockchain lets you play, earn and define the future of virtual worlds. You only need to maximise the benefits of blockchain in gaming by understanding the technology that powers it.
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