Blockchain is secure, creates immutable records, and can be used to develop apps and smart contracts. It is best known for being the technology that underpins cryptocurrency, but it can be used in a host of other applications and settings. It can be used to tokenize physical assets, is being used to improve existing financial systems, and it can even be used for governance and administration.
As the technology continues to evolve, businesses, individuals, and even governments are finding new and increasingly innovative ways to use blockchain.
Blockchain In Gaming
Blockchain has also found use in gaming. Online casinos like Mega Dice offer Bitcoin and other cryptocurrency payments, which are recorded on the blockchain, offering additional layers of security to players. Reduced costs also enable the casinos to potentially offer even bigger bonuses and rewards while enabling players to withdraw their assets shortly after winning.
In other types of gaming, blockchain can be used to offer in-game currencies that operate the same as real-world currencies, or it can be used to mint and create non-fungible tokens that can be used as in-game items and can even be transferred from one gaming platform to another, or via players.
Security Is Being Enhanced
Blockchain is a highly secure digital ledger. It uses public and private keys to sign transactions, and both keys need to be present for transactions to be created. These transactions are then verified by users of decentralized networks, and once records are created, they are immutable – they cannot be deleted or altered.
This means that blockchain transactions can help combat fraudulent activity while providing reliable, secure payment solutions. Improved security is better for players, and it is also better for game makers, which provides considerable incentive for the use to continue growing.
Play To Earn Continues To Grow
A lot of existing blockchain games are play-to-earn titles. These P2E games reward players with cryptocurrencies or non-fungible tokens for time spent playing the game, leveling up, or reaching other milestones within the game. The rewards tend to be relatively small, however, and there have been some complaints that these titles concentrate too heavily on earning, meaning that the titles can feel like having a job rather than playing for fun.
However, titles continue to evolve, and some of the latest games have been dubbed play-AND-earn because the earning is incidental to the enjoyable gameplay. Play and earn games will continue to rise in popularity, and this is likely to be especially true when experienced game studios enter the blockchain gaming market.
NFTs Are Being Used More Often
Non-fungible tokens are a form of blockchain asset. These tokens are digital collectibles that are tokenized and minted on the blockchain. The owner stores the key to their NFT on a wallet, in the same way as occurs with cryptocurrency assets, and the NFTs can be transferred, sold, and traded in the same way as coins like Bitcoin, albeit on dedicated NFT marketplaces.
NFTs can be given as rewards in much the same way as crypto coins are given out in P2E games. They can also form part of the game itself, with NFT trading and battling games being very popular. However, another possible use is as in-game assets, so player characters, skins, weapons, vehicles, and other in-game items are minted as NFTs.
Cryptocurrency Is Being Used For In-Game Economies
Games like Eve Online have shown that multiplayer economies are not only highly effective in-game tools but are also very popular with certain types of gamers. Implementing and using cryptocurrency effectively enables players to manage their own in-game currency.
Over time, this will lead to the most advanced economies. Players will pay one another for goods and services, and new players entering the game will increase the money supply, which, in turn, can mimic inflationary pressures that are experienced in the real world.
Big Names Are Getting Involved
Crypto and blockchain gaming have largely been offered by specialists, startups, and individuals, with some exceptions. If blockchain gaming is to take off, the industry needs to see major names in the game-making industry throw their hats into the ring.
This has already started, at least to some extent. Some major online casinos and other betting sites accept cryptocurrency, while Ubisoft launched Champions Tactics, which is an NFT trading and battling game. Sony has launched its own blockchain network, is launching its own crypto exchange, and is rumored to have been working on a wallet that we could see installed on PlayStation. It looks like Sony is attempting to launch all the infrastructure required to act as a central blockchain platform for other publishers.
Communities Are Getting Involved
NFTs are, at their heart, tokens. This means they are minted on existing networks rather than using their own networks. Other blockchain tokens that are becoming more popular are governance tokens and fan tokens. Fan tokens enable fans to buy tokens belonging to their favorite sports teams, celebrities, or, in this case, eSports teams. The fans get to show their loyalty to the team while the team receives the income from purchases of the tokens, making it a mutually beneficial arrangement.
Some of the world’s biggest eSports teams now offer fan tokens with additional benefits, including the chance to meet players or choose the team’s banners. This voting is enabled through the system of governance that can be offered, allowing token holders to vote on specific topics or queries. Such tokens could also be introduced in games, allowing players to elicit a much higher degree of control over the games they play.
Conclusion
The gaming market constantly evolves, with new innovations and technologies introduced all the time to meet the exacting demands of players. Blockchain and cryptocurrency are not yet mainstream in the gaming industry.
But more and more people are buying and investing in crypto, and companies, including big names like Ubisoft and Sony, are researching and investing in these technologies. We will continue to see continued expansion within this sector of the industry, bringing more choice and, hopefully, better gaming experiences.