Video games are a well-known entertainment medium, being loved by millions of people from all over the world. They vary in complexity, themes, and the features they provide, but you can be certain that those who love them are dedicated to improving their skills and becoming as good as they can be. Many are also fueled by the fact that they become part of a community when they play, having the ability to share insights and engage in discussions with people who share their hobbies. The intersection of blockchain technology and video games is one that is on the cutting edge of the industry today.
The sector has been estimated to be roughly three times the size of the global music industry as well as four times the size of the film industry, making it a very large chunk of the entertainment world. Consumer demands for better performance have also been a leading factor in the development of new software designs, making video games an influential force behind innovations in the electronics industry. But that doesn’t mean the industry is done growing. In fact, it is only just beginning.
One of the latest developments in this sense is that of blockchain games, products that combine decentralized ledger technologies with the games. The blockchain has so far been used almost exclusively in the world of crypto finance and transactions, with investors using it after reading on the latest ADA price prediction figures so that they can make better choices regarding their portfolios. But experts have always believed that there’s a lot of potential for other use cases as well.
The concept
Blockchain tech, including both digital coins and non-fungible tokens, is typically understood as a form of monetization when it comes to video games. There are many live-service games that have incorporated revenue models and options like in-game items or skins that can be earned and traded with fellow players using in-game currency. Some games allow the use of real-world currencies, but this model is unfortunately illegal in many countries and jurisdictions as a result of video games being regarded as similar to gambling. As a result, grey markets such as skin gambling have appeared, making publishers avoid taking the plunge and incorporating actual currencies in games.
When games integrate blockchain functionality the players have the ability to trade items from the game for digital coins that can later be exchanged for money. The biggest advantage of this technology is that it can avoid some of the issues connected to grey markets due to the traceability and transparency associated with the blockchain.
The key differences
Although blockchain is still a relatively new development within the technology and video games sphere, it has already left a lasting impact on the financial world. While many are still not convinced when it comes to cryptocurrencies as a result of their intrinsic volatility and sizable price fluctuations, experts have discussed the blockchain’s potential for development across many industry sectors and business areas, from banks to healthcare. Its implementation would change a lot of things, though, making the shift quite complex, with the gaming world being no exception.
One of the main features that would be different is the ownership. Traditional video games are controlled by the companies that created them, while the blockchain lets players actually own in-game items, generally in the form of NFTs. That allows them to own the items even outside the games. The blockchain is fully decentralized, allowing shared control and eliminating the reliance on centralized authority. Standard games, on the other hand, are managed by developers, so the community has very little influence over the decisions taking place in the game.
Blockchain technology allows for interoperability as well, as the tokens can be used across multiple games with no issue. This broad use is not possible in classic games. Gamers earn rewards they can trade or sell, with the potential for genuine income being quite high, while most games only let players spend money on upgrades or new in-game items and features. The only way to make real-world money in the games is to go pro or start streaming. The blockchain lets players take their profiles and assets from one platform to another, with no need to start fresh every single time, while the fact that every transaction is easily verifiable on the blockchain means that the possibility of fraud and tampering decreases.
Events
Video game events and tournaments are incredibly important for the communities, with people tuning in to watch their favorite teams and learn about the latest developments while they’re still in the incipient stage. They’re a critical aspect of the industry, and for decades, countless of them have taken place in the online world. The amount of resources needed to ensure prize pools, manage the teams and technology, and organize the venues is staggering, and that’s on top of additional challenges like bandwidth, cybersecurity, and ticket price point.
Technology and video games are the future and blockchain can be very helpful in this regard as well, providing the industry with a reliable way to track all these procedures for seamless results. The technology can track huge quantities of data from any network where it is integrated, so gamers will find the process simpler and hassle-free. Participation becomes more efficient, boosting engagement rates and increasing profitability, both factors that help ensure the continuation of these tournaments in the future as well.
The transformation
Since blockchain technology is known for its transparency and immutability, gamers don’t have to worry about sharing sensitive data or losing their holdings and items. Enhanced security safeguards game data and transactions from hacking and tampering. As a result of these features, the overall user experience is improved. When people know that the platforms they use are secure and efficient, they’re much more likely to keep returning to the games. Users have much more control over their experience, creating unique character storylines and plots as a result. Moreover, they can download different versions of the game without the risk of harming their experience.
If you’ve loved video games for quite some time now, you already know that the pace at which innovations happen is second to none. While the blockchain has not gone mainstream yet, it will undoubtedly bring a lot of changes when it does. Technology and video games are here to stay!
