The invention of blockchain technology has brought great change to many industries across the board. And online gaming wasn’t left behind either. The world of gaming has managed to thrive by using new technological advances to its benefit.
Due to that, and a few other factors, the gaming industry has become a huge market with great potential for even more growth. It was just a question of time when these two worlds would clash and give birth to something unprecedented. Those innovations could prove to be invaluable to the world of online fun.
What is Blockchain?
It’s the platform that makes cryptocurrencies such as Bitcoin, possible. It’s a huge accounting ledger that keeps track of every transaction in the system. The ledger is not centralized, no single entity is in charge of it, so no one can rig the system. The system doesn’t require a third party to facilitate transfers.
True Ownership of Assets
When it comes to online games, in-game purchases often stay on centralized servers. In such cases, are games the true owners of their assets? After all, the company owns and manages “the bank”. Such practice doesn’t only raise issues of trust, but can also prevent the players from trading and selling the items between themselves.
The distributed ledger technology offers a solution to this problem. The blockchain is an excellent solution for storing items. Aside from enabling gamers to exchange assets on other games, it also enables transparent and decentralized ownership.
The first time someone exchanged Bitcoin for real goods it became clear that cryptocurrencies are a valuable asset. And what were those first goods? Two Papa John’s pizza.
It is just one of many fun stories about cryptocurrencies, but it’s the one that has proved that cryptocurrencies have tangible value. Now, that intrinsic and practical use has entered the world of gaming.
Players of FIFA Ultimate Team have the opportunity to earn FUT coins in-game. Those coins allow games to buy extra packs. But, other than that, they aren’t good for much. They have no real value.
However, a digital token system of a Blockchain, listen on a third party exchange, would allow the players to exchange FUT coins for BTC, ETH, and plenty of other cryptocurrencies. Players could exchange them for real-life cash, which is a much bigger incentive than an additional player pack.
Virtual asset ownership and trading were simply not possible in traditional gaming. Working hard to get an expensive item, only to find out it lost its value because a counterfeiter copied it is quite disheartening. Implementing blockchain technology can put a stop to that.
A decentralized and immutable ledger allows users to determine what belongs to whom, as well as store items. In such a system, no one can acquire the keys illegally. There’s no possibility of duplicating the items.
It’s the same as with Bitcoin and other cryptocurrencies. The blockchain, among other things, serves to prove ownership of an asset.
Removing the Black Market
Players often have to turn to unregulated black markets, as lots of platforms do not offer a facility for buying and selling established accounts. Such illicit markets are not regulated and don’t have any safety mechanism, so there’s plenty of space for scams.
A transparent escrow-like system is a key to solving the issue. A system that doesn’t need a dubious third party to validate the transaction allows players to safely exchange accounts, rewards, and items. Gaming developers can employ the blockchain technology to create such a safe and free marketplace.
Faster Payments and Lower Fees
Traditional deposit and withdrawal methods are expensive, sluggish, and painstaking for both the players and the platform developers. The technology allows for faster purchasing of games and items while ensuring secure payments.
When selling their software outside of app stores, developers face many issues. Loss of control over the customers and huge commission fees can cause huge headaches.
Cryptocurrencies allow developers to receive direct micropayments. As a result, they make a considerably larger profit margin.
When it comes to games of chance, the technology also allows for and decentralized playing on any jurisdiction. The blockchain facilitates payments, eliminating the need for a middleman between the platform and the players.
Taking into account the way blockchain has infiltrated the industry, it’s clear that is has become the foundation of its future. The decentralization of the industry and tokenized virtual goods make it very hard to dispute the matter. Blockchain technology is constantly opening new doors within online gaming.