Blockchain Gaming Looks Very Promising

Developers games warm up the unique capabilities of the blockchain. Blockchain technology can provide decentralization, transparency and true ownership of non-replaceable tokens and game elements in virtual environments.

Blockchain technology is starting to integrate with the gaming industry. As the industry develops, the gaming market may offer one of the most compelling use cases for the blockchain.

Let's talk about numbers

In 2018, the global gaming market brought in more than 137,9 billion dollars. Research by an analytical company Newzoo, predict that in 2021 this figure will grow to $ 180,1 billion. The industry that began with rudimentary video games like Atari's Pong in the 1970s is currently one of the fastest growing. is becoming more exciting and popular across all demographics.

The impact of the gaming industry on popular culture goes beyond revenue-generating value. Data shows that there are more than 2,5 billion players worldwide, which means that approximately one in three people is a gamer.

For blockchain games, young upstarts in an already fast-paced market, revenues are growing rapidly. The market for unique blockchain-based gaming items is very valuable and is valued at $50 billion. It is expected that events will unfold at a speed corresponding to the level of the main sector, and in the coming years, the blockchain gaming sector is likely to continue to grow in terms of both popularity and revenue.

Blockchain for games

The blockchain and cryptocurrency communities have begun to learn how to use technology for use in the gaming context, once Bitcoin was deployed in the wild. Initially dominant in raw gambling, the blockchain-based gaming industry is just beginning to turn into a gaming sector that boasts a wide range of games of various genres.

In addition, the potential of blockchain technology is recognized in the wider gaming sector. Earlier this year, the French gaming giant Ubisoft, the company behind the popular Assassin's Creed and Far Cry games, has announced that blockchain technology will be used in several games that are currently in its production line.

In addition, a number of well-known companies - namely Ubisoft, Enjin, Ultra, ConsenSys, Alto.io, EverdreamSoft, Gimbl and B2Expand - have teamed up to explore the benefits of blockchain technology under the umbrella of the Blockchain Game Alliance.

The crossover of blockchain technology into the architecture of the main gaming software is determined by the relevance of the functions that innovation has. Developers are aware of the opportunities arising from the addition of blockchain to the main program structure of the game, as this can allow players to prove their unique possession of virtual objects even in different virtual environments.

For players who spend a lot of time and money creating tangled worlds within the game, creating a demonstrable affiliation of their online efforts can make a difference. Blockchain technology, thanks to the advent of intangible tokens (NFT), makes it possible to create ultimate, unique digital assets.

It is important to note that in the scenario of blockchain-based games, the user retains control and ownership of his creations and acquired in-game items. In a clear departure from mass games, which are property with control transferred to the manufacturer, customers can control their digital assets until they sell them. This increased level of control is a constant theme in the gaming sector of the blockchain, right down to the code used to create the games. Due to the open sector of the blockchain sector, gamers can relax, knowing that their favorite games will never be withdrawn from the market, as they can simply recreate the gameplay from the source code.

In addition, blockchain technology can increase the transparency of the game. For gamers, honest gameplay is absolutely essential. Thus, the innovation is suitable for applications in the gaming sector, as it relies on mathematical code. This is an advantage for all interested parties, as gamers will be happy to participate in the gameplay, which is both interesting and "provably fair."

In addition, the blockchain helps the gaming industry expand to real profit. As mentioned earlier, distributed ledger technology supports the digitization of any asset in the gaming environment. While this allows players to visualize their efforts, blockchain technology also allows players to exchange their digital assets. In addition, if players win any prizes during the gameplay, it is possible to convert these prizes into real money.

Finally, blockchain technology makes cross-game ownership possible. Most games currently exist in isolated environments that are unable to interact with each other. Blockchain technology allows you to create applications that support entire ecosystems, many of which can be interconnected. Gamers benefit from a scenario in which they do not need unique avatars for each game, but one separate for many games. For example, the popular Ethereum Dapp CryptoKitties is part of the wider Kittyverse universe.

Scalability issue

Despite the fact that blockchain technology can provide a number of unique advantages to the gaming industry, there are still several challenges ahead. It is noteworthy that the network capacity to scale. As mentioned earlier, the gaming sector is very popular, as a result of which the platforms that host such a large number of people should be able to effectively and efficiently meet the demand for bandwidth, connectivity and storage.

For the Ethereum blockchain, on which many gaming Dapps are based, the cost of gas rose to dizzying heights during heavy network congestion, for example during the CrytptoKitties boom in 2017. The network is constantly slowing down during periods of high activity. Moreover, higher gas charges at such times are a strong deterrent. Unfortunately, this is not isolated from the Ethereum blockchain. The same problems arise in many blockchain networks that support gameplay.

In addition, the UI / UX of most blockchain games remains in its infancy compared to advanced games. However, this will improve as the market develops.

Game industry blockchain by sector

The blockchain gaming industry is dominated by three major sub-sectors. The first one is gambling. The earliest gaming activity based on the blockchain consisted of bitcoin online gambling and set games. This first generation of games simply lived on the bitcoin blockchain and no longer took advantage of blockchain technology.

The most popular blockchain-enabled games are collectibles. This segment includes in-game digital currencies as well as NFTs. Perhaps the most popular of these is CryptoKitties, which went viral in November 2017. Other examples of NFTs are CryptoPunks, EtherRockets, CryptoPets, CryptoZombies, and Etheremon, while digital gaming utility resources include WAX. This iteration of entertainment offerings represents the second generation of blockchain games.

Virtual reality and eSports represent an important growing part of the game block market. At the forefront of innovation, the combination of blockchain technology, game theory, artificial intelligence and virtual reality is worrying many about where the industry will go in the next decade. Decentralized virtual reality game Decentraland is one of the first examples of this intriguing new intersection of technological innovations.

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