Cryptocurrency: Game Changer of the Gaming Industry

The blockchain ecosystem is expanding at a fast pace, and the number of people using it is increasing every day. The Gaming industry is underestimated for blockchain technology adoption. The integration of “blockchain technology and virtual currency” into games has been one of the things many people have long expected, and games that can earn virtual currency are still popular.

Current game industry

Most of today’s online games operate on a centralized model. All the data is stored on the server that is exclusively managed by the game operator.

In general, game data is account information and server history. The server history keeps track of all the happenings in the game, and also stores valuable assets, such as valuable collections, items, and in-game currency, that players collect in the game.

One of the most anticipated things when using blockchain technology in games is a “reward system in virtual currency” that can actually get value. The currency used in the previous games could only be used in the target game.

The database is maintained by one company, so players can’t really own an account or item. Also, the fact that the server is centralized results to many restrictions and vulnerabilities. For example, the contents are as follows:

  • Server down due to technical issues
  • Hacking the system
  • End of game service
  • Unauthorized account closure
  • Lack of transparency in game mechanics and fees
  • Tampering with game data by developers and operators

In other words, game companies have different privileges. However, blockchain technology can solve or mitigate these problems.

What are the advantages of blockchain games?

As a distributed database, the blockchain system can verify and protect any digital data. All data such as game history, items, and tokens are protected. The main purpose is to return the various privileges in the game from the game company to the player.

Every player has full control over their user account and earns assets, and can freely exchange any assets at any time. You can develop using various methods.

What impact will blockchain have on the gaming industry?

Let’s take a concrete look at the benefits of utilizing the blockchain for the game industry.

True ownership

As mentioned earlier, blockchain games give players permanent ownership of assets in the game and control over them themselves. Generally, non-fungible tokens (NFT) such as ERC-721 are used to create assets.

Assets include in-game play cards, items, and characters. Regardless of type, all are tied to blockchain tokens and maintained in a decentralized network.

Blockchain games, in contrast, allow you to create decentralized marketplaces. Players do not necessarily have to trust each other and at the same time provide censorship resistance. All players are peer-to-peer and can freely buy and sell in-game assets.

Closed ecosystem platforms, such as Mobage and Glee, have power, aiming to keep users in a closed ecosystem. The hurdles for moving between ecosystems have increased, and options are narrowed from the player’s perspective.

Payment efficiency

Blockchain and smart contracts can reduce payment fees and improve the speed of financial transactions. Not only peer-to-peer, player-to-player transactions, but also interactions between players and developers can be smoothly performed.

Mutual use in different games

By tokenizing game data and elements in the blockchain, assets can be exchanged between different games. This allows players to reuse their digital assets and try different games.

Tokenizing game items and allowing players to exchange tokens if they are on the same blockchain.

Fair game environment

Depending on how you use it, you can use the blockchain to build an open-source, highly transparent, distributed game server. In this case, to change the way the game works, you’ll have to get a lot of approval from participants in the blockchain network.

In addition, the blockchain is decentralized and has no single point of failure, which prevents hacking and other disruption to the game.

The period when you can enjoy the game

If the game is run on a centralized server, developers can stop the project or end the service for the game at any time. Blockchain allows players to continue playing the game even if the developer discontinues the service.

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