Blockchain technology is growing at an incredible pace, which allows you to create innovative solutions in a wide range of different industries. Despite the fact that the scope of technology is associated with cryptocurrency, its application is much wider. For example, in the gaming industry.
In the world of video games, the technology is applicable for creating new forms of monetization, introducing reliable authentication of players, as well as new features of the game process.

How it works?

Most online games prefer centralized models, that is, they store data on servers (account information, server history, game items and internal currency), controlled by the game developers themselves. All data belongs to the developers themselves, which is a huge minus. Speaking of the disadvantages of centralized systems:

  • Various malfunctions due to technical problems
  • Hacking by hackers
  • Disabling game servers
  • Unfair account ban
  • Lack of transparency in game mechanics
  • Game economy manipulation by developers and administrators

A blockchain-based system can be used as a distributed database. Such a system will verify and protect all types of digital assets and tokens. The main idea is to transfer power to the players.

The influence of the blockchain on the gaming industry

Real property

Each asset is represented by an NFT token. Assets may include game cards, skins, equipment, and characters. Regardless of the type of asset, they can all be tied to a specific token in the blockchain, which is supported by a distributed network.

Decentralized market

Blockchain will create decentralized trading floors. Pros: lack of need for trust, protection from censorship, free purchase and sale, exchange of gaming assets by peer-to-peer.

Payment optimization

Reduced commission and reduced transaction time due to smart contracts, including between players and the developer.

Game Multiverse

The ability to exchange assets between different games. Since game items are represented by digital tokens, players can trade these tokens on other gaming platforms that are in the same blockchain.

Honest rules of the game

The creation of open source servers will mean the possibility of making changes to the game mechanics only in the case of votes of the majority of the network.

Game without limits

If the developers decide to leave the project, players will be able to continue playing. In some cases, developers will be able to continue working on the game.

Blockchain issues

  • Scalability. Blockchain, as a rule, works much slower than centralized networks, which may prevent the full transition of the gaming industry to new technology.
  • Lack of demand. Despite the fact that hundreds of games on the blockchain are already available, demand for them is still very low. In most games, almost no one plays.
  • Centralization. Not all blockchain-based games are fully decentralized. Some of them use ERC-721 or other tokens, but actually work on a centralized server.
  • The simplicity of the product. There are some exceptions, but most blockchain-based games are too simple to attract gamers. Players need beautiful graphics or challenging gaming experiences.
  • Entry Threshold. Raising funds to launch and support the game on the blockchain is a difficult task. Lack of adoption, as well as problems with scalability, can limit the capabilities of developers.
  • Competition. Blockchain games are often created by small and independent development teams (indie games). It's hard for these teams to compete with giant gaming corporations from a centralized world.

TOP-5 examples of using blockchain in gaming

  1. Ubisoft. Ubisoft is experimenting with a prototype game called HashCraft, where gamers can download worlds of their own creativity and receive rewards in digital currency for this.
  2. Fuel Games. In the first release of the company - the game Etherbots, participants can purchase spare parts, create robots and fight with each other. But the most important thing here is that these digital assets can subsequently be sold to other players. Some products reached prices of $ 18,000.
  3. Plair. Plair rewards participants for their time and intellectual property in the game with Plair tokens, which, in addition to in-game, have real value.
  4. Etheroll. Etheroll is a fairly simple betting game in which players bet on the result of a die roll. The main difference is that using the Ethereum blockchain, players can be sure of the fairness of the game.
  5. Robot Cache. Robot Cache is a blockchain platform where users can use the IRON cryptocurrency to buy and sell games. Also, players have the opportunity to mine the currency while they are not playing, thereby earning more tokens to buy new games. When a user sells a game on the platform, he receives 25 percent of the sale, and the remaining 75 percent is divided between the platform and the developer. Typically, developers do not get anything for the sale of already purchased games.

Most games work on the Ethereum blockchain, but the list of projects being developed on other networks, such as EOS, Enjin, Loom, TRON, ONT, NEO, VeChain, and IOST, is growing. Here are some examples of blockchain games:

  • Decentraland (virtual reality platform)
  • Cryptokitties
  • Gods Unchained
  • My Crypto Heroes
  • Cheeze Wizards
  • Crypto Space Commander
  • Mythereum
  • Axie Infinity
  • HyperSnakes
  • EOS Dynasty
  • EOS Knights
  • Beyond the Void
  • CryptoZombies
  • Relentless
  • HyperDragons Go
  • CryptoWars

Conclusion

Blockchain technology has huge potential in the gaming industry in the near future. It improves the user experience of gamers and developers, provides decentralization, transparency and interaction. The introduction of blockchain technology into the world of video games means the emergence of a new space for entertainment, as well as greater freedom for players.