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By Xield Protocol
In the gaming sector, blockchain technology is the newest big thing. For a few years now, games based on blockchain technology have been anticipated widely. The quantity of games in the sector has increased recently. This technology has given companies that wish to develop decentralized gaming applications new options.
āThe most recent Technavio analysis projects that the gaming market will expand globally by $125.65 billion between 2020 and 2025, growing at a compound annual growth rate of 12.40%.ā
Blockchain technology integration in gaming apps is a major driver of market expansion. Check out our blog to learn more about blockchain's application in the gaming industry.
Blockchain in Gaming: An Overview
Games developed on blockchain-based platforms or incorporating blockchain technology are referred to as blockchain gaming. The gaming sector now has many prospects because of the combination of the blockchain and gaming industries.
First off, gamers in these games have access to digital resources. These resources are valuable outside of the game as well. Blockchain purchases in-game assets that may be exchanged for cryptocurrencies and real money when combined with NFTs and cryptocurrencies. The player fully owns these assets after they receive an NFT reward; they can be bought, sold, and traded both inside and outside of the games.
According to a September 2021 study conducted by the Blockchain Game Alliance (BGA) organization, asset ownership is the main benefit of blockchain games, as stated by 85% of respondents. This stands in sharp contrast to the conventional centralized gaming approach, which forbids the sale of any in-game items on third-party marketplaces.
The survey indicates that among the primary advantages of blockchain gaming, new income models (74%) and player reward models (71%) came in second and third place, respectively.
Blockchain games are decentralized as opposed to traditional games, which are extremely centralized and give the game makers complete control over all resources and money. It denotes that everyone in possession of digital assets and game objects owns or controls the game instead of any centralized authority.
Gaming and cryptocurrency: an ideal partnership
However, gaming and cryptocurrency have grown hand in hand at the same rate. With both these firms targeting the same audience, it would appear that they both target technology-conscious individuals with knowledge of digital currencies, always on the lookout for the next big thing. Also, gaming is one of the most innovative industries out there, and cryptocurrency is a direct progression for the business.
From the zero-value market sometime back, blockchain gaming will be valued at 3 billion USD in 2021.
The elements of cryptocurrencies that are useful for the gaming industry are faster transactions, lower prices, and better security. In addition, gaming that supports blockchain adoption makes it possible to use cryptocurrencies in every aspect. To online gamers, blockchain for digital money and virtual economies has an environment that will embrace cryptocurrencies very easily.
Impact of Blockchain Gaming
It has only been in the last decade that blockchain games have become more popular. Dapp radar also notes that gaming transactions occur daily at about 20 million through all mainstream blockchain platforms. This is three times more transactions than all the other applications of blockchain technology in an enterprise setting. However, the total volume, as established earlier in this blog post, is much lower than the total volume of financial dApps.
What blockchain-based games offer players is a reasonable chance of getting paid while playing the games. It is worth noting that the majority of gamers will not become millionaires because the gaming profit possibility is attractive to gamers.
Blockchain games can offer creators new opportunities to monetize their creations by establishing the real-world rarity of the items included in the game. Moreover, the owners of video gaming companies are allowed to earn royalties on the subsequent sale of the gaming assets.
Opportunities of blockchain gaming in real-time
Are you ready to discover all the potentialities that blockchain creates within the sphere of gaming? The opportunities are truly mind-blowing! Blockchain offers genuine digitization, player control, and improved security.
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True Ownership of In-game Assets
Have you spent countless hours farming that specific sword, skin, or whatever, only to find out that you donāt own it? With blockchain, this changes! Just try to think about possessing a character or a skin that no one else has and that will remain yours regardless of your further presence in the game. -
Play-to-Earn Models
What if, for instance, you could get paid just to play a particular game? Players receive the ability, character, or items, and cryptocurrency or tokens as they gain experience, complete tasks, or win battles in games based on play-to-earn models powered by blockchain. -
Decentralized Gaming Economies
Tired of centralized control? The major strength of blockchain is that the gaming economies are not tied to the publishers or developers. Learners can negotiate assets, establish prices, as well as participate in worldwide markets. The real economies of gaming are becoming more dynamic and now shifting in the hands of the players. Thatās why the future of gaming is looking so bright!
Challenges in Blockchain Gaming
Hold on! However, it is crucial to understand that blockchain gaming has its challenges if you want to dive right in. There are several issues that prevent people from adopting the new technologies on a large scale, and let us discuss some of them. Are you ready?
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Scalability Issues
Blockchain is useful and magnificent, still, it is not everlasting. High transaction fees and slow processing speeds, especially on networks like Ethereum, can hamper the seamless gaming experience players crave. As solutions, such as Layer 2 protocols, and sidechains, emerge, scalability remains an issue that is yet to be solved. Do you agree? In order not to fall, millions of players trade on the platforms in real-time, which cannot be done without some stumbles. -
User Adoption
Remember when you tried to explain blockchain or cryptography to a person who had no clue about it? Itās not easy, right? However, for blockchain gaming to go mainstream, the number of users has to increase. But the depth of crypto wallets, even the concept of the gas fee or unfamiliarity with gameplay, could turn off those with a lower time commitment. The learning curve is steep, and for many, the tech barrier is a dealbreaker. -
Regulation and Security Concerns
Now that blockchain has emerged, issues such as regulation and security emerge as concerns. Free markets can mean that spammers and fraudsters appear, and such things have been seen in the world of cryptocurrencies. Moreover, the constant growth of digital wallets requires crucial protection of user assets in these applications. Regulation is still an issue for governments, and this will sometimes lead to slow development of this sector.
Despite the challenges, the potential for blockchain in gaming is undeniable. While hurdles exist, solutions are being actively developed to overcome them.
Looking Ahead: The Future of Blockchain in Gaming
Blockchain makes the future of gaming all bright in different ways. Let's dive in.
Blockchain Advancements in New Generation Gaming
Honestly, as the concept of blockchain evolves further, and as more firms use it to create novel games that would have been inconceivable before, the benefits would increase exponentially. The integration of blockchain will help developers design worlds where players can buy and sell their games and experiences. Players own and control the economies of the games, and it enables interoperability between platforms that was previously unthinkable.
The involvement of gamers in determining Blockchain Technology
Lastly, it is important to discuss the potential of gamers in determining the further development of the blockchain industry. Gaming has always been and will always be an enthusiast of future technology because there are so many options that are discovered. Their passion and desire for engaging content will ensure that blockchain finds its application and growth in gaming applications.
Real-World Cases: Blockchain Success Stories in Gaming
Want to see blockchain in action? The first step is CoinFantasy, which is not just another blockchain gameāitās pioneering an entirely new category!
CoinFantasy
Imagine combining the thrill of fantasy gaming with the strategy of the financial marketsāsounds intriguing, right? Thatās exactly what CoinFantasy offers. CoinFantasy is the worldās first decentralized platform for fantasy games in financial markets, enabling users to predict outcomes in crypto markets through an entertaining game. It is possible to predict matches and earn rewards for completing that correctly and taking positions on the leaderboards.
Axie Infinity
Axie Infinity made gaming take the world by storm by introducing the play-to-earn model to gaming by enabling players to earn an income from battling and breeding Axies, these being digital pets. These assets can be traded as high-value tokens among the players, and such tokens can also be bought and sold for other cryptocurrencies. Some parts of the world have adapted the game and its earning potential so much that players can make a living off Axie Infinity alone.
Decentraland
Want to own virtual land? In Decentraland, the users can purchase properties and assets, build on them, and then sell them as individual NFTs. This allows users to build almost anything in this metaverse, from art galleries to virtual casinos, with real-life income from virtual real estate. From this perspective, you see that Decentraland is constantly advancing and evolving due to its stable and, based on the Ethereum blockchain, rapidly growing economy.
CryptoKitties
CrytoKittes is one of the first games ever made on a blockchain and published in 2017. Gamers have the option to either hold onto their kittens until they increase in value or trade them on the open market. Genes reflecting a variety of traits, like eye and hair shapes, and base and accessory colors, determine a cat's personality.
āA Newzoo analysis predicts that by 2023, in-game marketing will increase revenue on a portable platform by 9.6%.ā
Conclusion
As you continue to expand and increase steadily in the entertainment industry, this begs the question: how will this future of blockchain gaming look like? Presently, blockchain gaming is relatively young as an industry, but there are predictions that it will skyrocket in the future when companies fully adopt blockchain technology. The use of blockchain in games may make regular game producers accept the blockchain technology, hence broad acceptance.
As future gaming platforms may be based on blockchain, the prospects for enhancing the interaction between game networks may become a priority. There is an opportunity for players to integrate their assets into multiple games and interfaces, which increases the overall immersion. The game business, which is infused with blockchain tech, can provide players with numerous exciting new experiences and do so on a sustainable basis.
Author bio
Xield Protocol: Biggest Gaming DePIN Infrastructure leveraging idle bandwidth and computing power to generate DePIN rewards seamlessly.
Disclaimer
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