The advancement of technology has greatly impacted the growth of the gaming industry. Online games are getting more popular among the youngster’s community across the globe. In this regard, a new term introduced by online game developers, “GameFi” or Game Finance, combines traditional gaming with blockchain technology. Blockchain is a distributed ledger system that keeps all digital transactions secure with encryption between two or more parties.
Today, Blockchain gaming is continuously evolving where the game developers are introducing GameFi through blockchain technology. They are developing a blockchain gaming marketplace that allows gamers to engage with more games. Also, they can earn through playing blockchain games. However, GameFi offers many exciting and awesome ways to earn money while playing your favourite games online.
Thus, the future of the gaming industry and blockchain gaming is very promising, and it will see major growth in the coming years. The major aim is to develop a decentralized gaming marketplace for online players. In this article, you will learn how Blockchain transforms the gaming industry. But before you move ahead, you should know about Blockchain technology briefly.
What is Blockchain Technology?
Blockchain technology is one of the top trending technologies. It is a distributed ledger that allows transparent sharing of business information within its network. In other words, Blockchain is a database that securely stores data within blocks further linked together in a chain.
Blockchain is a decentralized public ledger that records all digital transactions through a network of multiple computer systems. It saves the user information with high security using encryption so no one can alter any data. Also, it is an immutable distributed ledger that records all digital transactions. It also helps to track assets inside a business network.
Blockchain in the gaming industry
Blockchain is playing a great role in the gaming industry. Blockchain gaming uses the Blockchain that allows gamers to purchase in-game assets and makes them owners. However, there are many ways that Blockchain is changing the gaming industry:-
Ownership of Digital Assets
Blockchain allows online players to own their in-game assets completely. Players can get unique digital products and items in the game using NFTs (non-fungible tokens) and Cryptos, such as skins, weapons, virtual space, etc. All data is securely stored and saved on the Blockchain platform. It ensures higher transparency and eliminates the risk of duplication of assets.
Blockchain allows users to create secure, decentralized marketplaces where players can directly trade digital assets. It removes the need for middlemen and offers a secure and transparent space to make online transactions safely.
Interoperability and Cross-Game Compatibility
Blockchain provides the interface between multiple games and their platforms. Players can easily transfer their in-game assets, coins, and other rewards between multiple games they play. They can also use them in different games to get a great experience and enhance the value of their assets.
Play-to-earn model is the latest and most preferred blockchain gaming model. This model allows all online players to earn cryptos/NFTs or many other rewards for games they play and win. Thus, Blockchain has the potential to change traditional gaming models. Further, it allows online players to monetize their time and skills in this digital gaming space.
Blockchain’s decentralized nature increases the level of security in gaming. Utilizing smart contracts lowers the chance of fraud and cheating by ensuring fairness and transparency. Additionally, it can aid in the fight against problems like asset forgery and duplicate goods.
Community governance models are frequently included in blockchain-based gaming platforms. They allow users to take part in the decision-making process. Also, players can affect the latest game updates, rules, and the direction of overall development through voting systems.
Funding plays a key role in the blockchain-based gaming industry. Blockchain has changed the idea of issuing initial coin offerings (ICOs) and selling tokens for game development. As a result, developers can raise money directly from the public, leaving traditional funding channels and gaining more financial freedom.
Benefits of Blockchain in the gaming industry
There are multiple benefits of the blockchain gaming model. The following are the most common benefits of using Blockchain in the gaming industry:-
- Blockchain technology helps to build secure digital identities and reputations for online gamers. The player identity helps to verify players and prevent potential fraud within the gaming industry.
- It allows monetizing in-game assets, developing game rules and policies, upgrading features, adding new material, etc. Further, it allows users to control their gaming experience fully.
- It offers higher transparency and security to the players and businesses within the gaming industry. Blockchain-based transactions are highly clear, efficient and immutable. They make it difficult for cheaters to duck the system.
- Blockchain gaming offers a secure space through strong data encryption without single servers. In a decentralized blockchain network, nodes collectively manage distributed databases, each possessing the sum of the database.
- Blockchain’s decentralized structure allows users to play the games and control their in-game assets much more safely, which is less open to cyber threats. Moreover, players can easily and more effectively manage and store their game winnings with great security.
Thus, Blockchain has the potential to transform the gaming industry. It also allows players and business users to manage their data over the gaming platforms securely. Moreover, the future of blockchain gaming is highly promising, and we can see excellent growth in this industry.
Author Bio :
Hi, This is Sai Thirumal, a Research Analyst passionate about writing and staying updated with the evolving tech industry. I specialise in writing blogs and articles on Machine learning, DevOps, Alteryx, Anaplan, Tosca and workday. I enjoy researching the latest technology updates and translating my findings into engaging blogs and articles.