Blockchain: The Future of Online Gaming Industry
By Pranay Singh Bayas
Over the years, the notion of gaming (video games) has evolved tremendously. The gaming industry is expanding at an incredible rate. The industry is presently valued at $173 billion, with strong indications that it will exceed $300 billion over the next five years.
As cryptocurrency continues to grow in popularity, businesses worldwide are seeking new ways to incorporate this innovative technology into their products. Online gaming has become a hotspot for creative ideas in this field. Advanced blockchain networks are being developed to help the sector as a whole. While the market continues to attract new investors, game developers have also begun to create blockchain-based games. Crypto-related games are undeniably changing the traditional gaming sector by enabling players to make money as they play. Let’s talk more about this new field that’s just getting started.
Introducing Blockchain Gaming
Blockchain technology is used in games that are based on Crypto. Blockchain is a ledger that maintains and records data by distributing it across a network of computers. Information can’t be changed or erased after being added to the blockchain, making the network incredibly secure. Furthermore, the database is accessible to all linked computers, ensuring that information is not controlled centrally. Blockchain technology powers Bitcoin, Ethereum, and other cryptos.
Crypto games are video games that operate on a Crypto network and feature a fully or partially distributed ledger architecture that gives players verifiable ownership of the virtual items in the games. Users can trade these for cryptocurrencies, which can then be converted to real money.
The majority of the traditional games include marketplaces where users may buy skins, weapons, avatars, and other items. However, even if they pay actual money for it, users may not own any of it. Because traditional game developers use a centralized approach, they have complete control over game dynamics and are the actual owners.
On the other hand, Crypto gaming allows everyone involved in the game to own a piece of it. The items obtained during a game are the user’s assets. For the first time, blockchain enabled a decentralized and fair marketplace, allowing players to have a voice in the gaming experience. The players can control the game’s dynamics. When games are operated on a centralized server, the developers can shut it down at any moment, but with blockchain, players may continue to play a game even though the developers are no longer engaged and can gradually expand the game with new narratives and assets.
What is NFT Gaming?
The NFT gaming sector has also grown in popularity as the Crypto games have. Crypto gaming received an upgrade with the addition of NFT games. Blockchain technology can be utilized in gaming for many different uses. The developers may build the entire game on a blockchain, with every interaction authenticated, stored, recorded on the blockchain, or utilize the technology for the in-game economy. NFTs, or non-fungible tokens, are digital assets that can be employed within games. “NFT gaming” and “Crypto gaming” are used interchangeably, but there is a major distinction between the two. While Crypto gaming focuses on utilizing cryptocurrencies to transact with other gamers, NFT gaming focuses more on native token usage to generate/ collect unique NFTs that may be used in-game for particular tasks or which can be sold later.
In NFT gaming, NFTs will be used in the rules, procedures, and player interactions. Ex: a game may use an NFT to represent your unique character. NFTs can also be in the form of in-game items you find while playing the game. You may trade your NFTs for a profit with other gamers. Developers build smart contracts that set the rules for the NFTs used in a game.
Popular Games in 2021
- Axie Infinity
- Gods Unchained
Benefits of Crypto-related games
Cryptocurrency is being used in online games to overcome difficulties related to transactions and frauds that users face. Other benefits include :
- Easy Payments and Withdrawals along with Low Transaction fee
- Safe and Secure
- Real ownership
- Metaverses and interoperability
What is GameFi ?
The combination of blockchain-based gaming with decentralized financial instruments is referred to as GameFi. GameFi implements a “play-to-earn” strategy. This approach provides financial incentives for players to play and develop through games. The GameFi projects use ideas from the DeFi industry to reward players.
To participate in any of these games, players will need the following:
- Get a Cryptocurrency wallet (MetaMask)
- You’ll need to put funds into your Crypto wallet with the appropriate cryptocurrency used by the game
- Purchasing starter items: Many games require users to buy characters, native crypto tokens, etc., before they can start playing.
The world of GameFi does not appear to be slowing down. The sector’s potential is limitless with increased investments and GameFi-specific funds streaming in. As blockchain network grows and players have access to more of such games, there will undoubtedly be a rush of new products hitting the market in the coming years, further boosting this industry.