Blockchain in Gaming – The Potential, and Limitations, Unleashed!

Blockchain in Gaming – The Potential, and Limitations, Unleashed!
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    February 16, 2023 Last Updated: March 7, 2023

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Gaming applications are ruling the hearts of youth since always. With humans drawing toward the virtual world, the craze of playing games and imbibing the latest technology has also taken a major toll. Blockchain technology in gaming or blockchain games is what people highly seek. But one important question that might disrupt the minds of entrepreneurs is, what perks will they enclose if they choose to develop a blockchain game? Or what are the related potentials, and limitations of the same? Therefore, we are here to unveil all these doubts with a detailed document. 

Keep reading till you find all your questions and queries!

Blockchain gaming witnessed a vivid growth of 2000% in 2022 as compared to the previous year. Hence the growth indicator is highly in favor of developing blockchain games. On top of that, blockchain games have also proved themselves as stable and feasible assets as they surpassed the investments of $2.5 billion from VCs and multiple global investors. 

Apart from this, the metaverse ecosystem is exceedingly paving way for games to skyrocket in the blockchain universe. Not just this, but the potential of inclining gaming dApps, attracted more than 1.22 million unique active wallets (UAW) by 2022, which amounted to 52% of total activities in the entire blockchain ecosystem. 

Blockchain in gaming

 

Though the prominence of blockchain games is evident, however, just going after the lucrative data without scrutinized research is not a wise entrepreneur’s call. Hence, we will understand everything about blockchain technology in gaming with the best informative insights. 

What Is Blockchain Technology & How Is It Integrated into Gaming?

Blockchain technology is nothing but a decentralized, distributed ledger that ensures and maintains stable records. This technology has proved to asset a new experience for all the gaming enthusiasts, and businesses who go for NFTs and cryptocurrencies, to purchase the in-game assets that could be further recoiled to real-life money. There are various popular games that use Ethereum-based cryptocurrencies. One example of such a game is Axie Infinity and it beholds an end number of users all over the world. 

Blockchain game at its best

What Role Does Cryptocurrency Have in Gaming?

Cryptocurrency has evolved beautifully with its popularity in the gaming world. Since cryptocurrency uses cryptography, therefore the transactions are fast, secured, and precisely verified. This is a perk for gaming enthusiasts, as they can easily make payments without getting into the hassle of traditional financial transactions via banks or credit card companies. 

The cryptocurrencies like Ethereum and Bitcoins are highly used for multiple fast and secure payments pertaining to in-app purchases like power-ups, themes, avatars, unique artifacts, and much more. On top of that, the players can also earn crypto tokens or coins while playing the games. 

Since blockchain technology is huge and cryptocurrencies also have a diversified niche, therefore, there are many ways in which blockchain technology is used in games. Some of those are-

1 Non-Fungible Tokens (NFTs)

NFTs are one of the most preferred modes of cryptocurrency and are highly used for decentralized transactions. These are basically the digital assets possessing the ownership of being stored in the blockchain technology. Also, it establishes the ownership of digital assets with keen precision. With the emergence of Web3 along with the use of blockchain tech in the games, NFTs have received a wider picture. As NFTs can shape themselves according to the requirement, be it images, memes, GIFs, videos, and varied other digital assets. With NFTs, gaming enthusiasts have the option of owning their digital assets with utmost prominence. Therefore, gamers have control over the performance of these assets and they can further trade, or sell the same without the involvement of any other intermediaries. 

2 The Crypto Games- Playing & Earning

Blockchain technology has brought one insightful and intriguing genre of gaming which is known as the ‘Crypto Games’. These games are different from traditional games and are more lucrative as gamers can play and earn cryptocurrency or digital currency. Furthermore, this cryptocurrency can easily be converted into real money and used for purchasing assets within the games. 

This idea was evolved and brought into existence for encouraging gamers to play and earn a handsome cryptocurrency in the form of an incentive. Basically, when a gamer initiates crypto gaming, then the gamer is rewarded with a cryptocurrency which is further used outside in the “real world”. 

3 The Tournaments or Visual Events

Virtual events or tournaments have been a vital part of the digital world and such events have been organized for years. However, the nature of these events is pretty complex and challenging for comprehension as there is a need for varied resources for management. On top of that the concerns like ticket prices, registration costs, cybersecurity, bandwidth, and many other factors. Thereby, verifying the rewards earned by the participants is not an easy thing to be done. 

Similarly, to aid this and smoothen the process, blockchain technology came up with an insightful option. Blockchain tech gives the ability to easily track and verify the person receiving the awards. Since it is a decentralized technology therefore it offers secure transactions along with tracking data automatically where it’s been implemented. This makes it very easy for gamers to easily participate in virtual events or tournaments using blockchain technology. 

The demand and popularity of blockchain games are highly diverse. The in-game transactions are estimated to generate a revenue of 9.6% just on the mobile platform by the year 2023. 

 

Blockchain in gaming

Now that we learned the role of cryptocurrency and blockchain in the gaming industry. Let us dive deep into the ocean of gaming transformation with the influence of blockchain games. 

How Is Blockchain Technology Transforming the Gaming Industry?

Since you are still on the page and surfing till now, it is pretty evident that you are aware of the perks pertaining to blockchain games. But we value your time and thus, we have now sorted the prime benefits of blockchain games in a cluster so that you get better clarity in your decision. 

Perks of Blockchain gaming

1 Encrypted, Secure & Transparent Transactions

The blockchain is evidently an immutable, secure, and transparent technology, that easily ensures no fraud or double spending in the transactional records. The integration of this technology empowers the games to have a layer of confidence in light of digital transformation. This safety in transactions is an ideal prototype for gamers to share the data or assets like NFTs.

2 Amplified Security

Blockchain is evidently synonymous with security & encryption, similarly, the gaming in the blockchain is correlated to secure messaging & two-factor authentication. This technology protects all sensitive data and information, user transactions, game data, and more from the risk of being hacked or tampered with. 

3 Enhanced User Experience

Blockchain games are extensively lucrative and feasible when it comes to user experience. The users or gamers create their own characters, playing or even the storylines and more. Furthermore, this technology also helps gamers to download the different versions of the game from any location without any compromise in the gaming experience. 

4 The Verifications

Blockchain technology ensures the verification and proper authentication of all the transactions taking place between different parties. All the transactions are adept and legitimate without the risk of any fishing or fraud. On top of that, blockchain technology also ensures that no individual or party receives twice payments for the same services or goods. Therefore, blockchain technology is nonetheless a lucrative perk. 

5 The Earning of Rewards

The players get the chance of earning rewards by completing various missions and quests in the games. While, when we look at traditional games the rewards and points are not equivalent to real money. However, here the rewards are cryptocurrencies, that can be easily used as real money for purchasing in-game assets, or purchasing products from e-commerce sites. 

Limitations of Blockchain Tech in Gaming

Since every coin has two sides, similarly along with the opportunities and perks for businesses, blockchain games also come with some challenges. 

Limitations in blockchain games

 

1 The Complexity/Perplexity

Blockchain games are undoubtedly not a hard nut to crack, however, the user first needs to set up an account that is not very complex. But when one selects the type of blockchain game, then the setting of the crypto wallet comes into play along with purchasing a stipulated amount of cryptocurrency which is a complex task. 

2 The Regularity Challenges

Cryptocurrencies are huge when it comes to blockchain games. Thereby, the use of crypto like the Theta, and MANA & more becomes a task or challenge as their functionality is complex. And the confusion if they must be incorporated/used in the blockchain games still lies as a task. 

3 The Competition

Since the traditional gaming industry is in the run for ages, and new games cater the user engagement, it becomes pretty challenging for blockchain games to stand against them. 

However, every art is valued, the more you make your game feasible and trendy, the more popular your game would be. 

Build your own blockchain game

Conclusion

Blockchain gaming is evidently having a pretty bright future as the world is inclining towards this technology. And by now, we hope that you must have received all the answers to your doubts. In case there is any doubt regarding this niche then, you have the option of simply coming up to us and receiving a legitimate description or demo of the same. Blocktunix is one of the best companies when it comes to the inculcation of blockchain technology. Develop your own blockchain game and explore the perks of its potential exclusively. 

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