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Blockchain is a distributed, decentralized digital ledger that allows for secure transactions. It has created a new gaming experience for both businesses and players by allowing them to buy in-game assets with NFTs and cryptocurrencies and then exchange them for real-world money.
The modern gaming industry had humble beginnings. Simple and minimal in nature, a decade ago, gaming was regarded as entertainment. But with time, the gaming industry has taken a turn in unexpected ways. With the introduction of blockchain technology-based gaming, the gaming industry has undergone a complete makeover. Despite their infancy, blockchain and NFT games are appealing to players because they provide a variety of new alternatives that traditional gaming does not. Revolutionary new concepts like "play-to-earn" gaming and allowing players more power have made them appealing to both crypto fans and gamers.
Gaming Industry Today: Currently, the gaming industry hosts games on a centralized server. All the in-game assets, including collectibles, items, virtual money, and avatars, are stored on the centralized server, which the gaming company fully controls. Also, they are "pay to play" models where gamers need to buy real money to buy skins, potions, weapons, etc.
But with blockchain in the gaming industry, virtual gaming assets, and accounts are safe and free of hacks and malware attacks as they are on the blockchain; moreover, the blockchain is decentralized and no one controls it, unlike the traditional games.
Blockchain in the Gaming Industry: Blockchain in gaming has the potential to provide significant benefits and financial gains to all participants. Some of the benefits are listed below:
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Asset Ownership: In a typical game (current internet games), the game developers cannot sell the in-game currency, skins, texture packs, worlds, maps, and in-game assets to other players. The players can buy those assets within the game, but they cannot monetize them by selling them within or outside the game. However, with blockchain technology-powered games, players can own their in-game assets as NFTs and sell them secondarily on NFT marketplaces.
Similarly, tokenization will give the in-game currency (cryptocurrency) real-world worth. Players will be able to purchase, earn, and sell this token to their peers or in the real world. Asset ownership and tokenization will result in revenue distribution between game developers and gamers.
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Transparency: Blockchain technology offers a consensus mechanism in which no one can alter anything based on individual decisions. Blockchain provides clarity by storing information in the distributed ledger and every node in the blockchain platform has all the transactions that have taken place. That's why the system is decentralized and transparent, making it risk-free, more robust, and secure from cyberattacks.
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Giving Power Back To The People: The use of blockchain technology will make the gaming industry more democratic. Developers can make decisions that players find appealing by introducing voting rights based on the number of tokens. Unlike present-day internet games, where game developers are the sole owners and decision-makers, blockchain gaming technologies give power to the people. No one is authoritative, and there is no controlling central power; everyone is equal and has equal rights within the blockchain.
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Crypto Assets: Crypto Gaming is a type of blockchain-based online game in which players can earn crypto assets such as cryptocurrencies or other digital in-game assets such as NFTs or other collectibles that have the potential to increase in value over time.
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Streamlining Payments: Last but not least, by employing gaming on the blockchain platform instead of centralized servers, games can reduce transaction time and cost. With third-party banking and other financial institutions, there are many hidden charges, like service charges, whereas, in blockchain technology-based games, there is no third-party financial institution involved, thus reducing transaction costs and enabling payments in real time, even across international borders.
Since blockchain technology enables the actual, real-world trade of non-fungible tokens, the cryptocurrency gaming sector is worth billions of dollars (NFTs). There are even digital economies where you may get paid to play!
Blockchain gaming has grown from a zero-value sector to a 3 billion USD market by 2021. By 2025, this value is predicted to climb to 39.7 billion USD. If you want to dive into the game-changing 40 billion-dollar revenue blockchain technology business, many software companies offer blockchain development services like blockchain-based gaming development, NFT development, smart contract development, custom cryptocurrency development, and other blockchain solutions.
Author Details
Vijayavani Chandra Sekaran, a Crypto and NFT Enthusiast, is a graphic designer, technical content writer, and SEO executive in a blockchain development company.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.