Were you aware that the blockchain-Led technology gaming industry experienced an astonishing growth rate of 2000% in 2022 compared to the previous year? Despite facing challenging micro and macroeconomic conditions, blockchain technology has emerged as a stable asset, having secured more than $2.5 billion in investment from global investors and venture capitalists.
The development of gaming decentralized applications (dApps) continues to expand, and the metaverse ecosystem offers additional opportunities for blockchain-based games to thrive. Financial institutions have estimated that the decentralized metaverse has a high potential to become a significant player in the $8 trillion market. The inclusion of blockchain technology in developing game apps is a crucial factor that is responsible for this growth.
As per the ‘DappRadar x BGA Games Report – Q1 2022’, the blockchain gaming sector attracted over 1.22 million unique monetary users in March 2022, representing 52% of all activities within the blockchain ecosystem.
Understanding what is Blockchain?
Blockchain is a decentralized data chain that provides access which is given through mutual consent. The technology uses advanced encryption referred to as cryptography for data protection.
One of the main advantages of Blockchain is that it offers an extremely high level of data security since it does not allow users to delete, alter or tamper with data.
Additionally, all inputs to the Blockchain are recorded as separate pieces of data and can be accessed through historical reports. In addition to this, the write only protocol of blockchain ensures a tamper-proof technology.
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What are Blockchain-led games?
It is widely known that Blockchain technology has made digital transactions more convenient. Similarly, Blockchain has been implemented into game applications to simplify in-game transactions. There are a lot of guides on mobile app development that can help you in handling game data for development purposes.
With the advent of blockchain-led games, there is limited need for developers to control game projects and their parts. The assets are stored in a decentralized way through multiple servers. Additionally, these games also offer decentralized transaction avenues like cryptocurrencies and NFTs.
How is blockchain technology enhancing the mobile game experience?
Given below are the top-notch benefits of Blockchain which has helped transform the gaming industry:
- Transparency is paramount
Blockchain is a technology that keeps transparency at the very top, which means that it prevents the occurrence of double-spending or fraud in transaction records. This feature instills confidence in users when they engage transactions digitally, making it a preferred choice for games that involve sensitive data like in the case of NFTs.
- Top quality security
Blockchain protects sensitive information, like user transactions, player data, and game information, against tampering or hacking by utilizing encryption systems such as Two-Factor Authentication and Secure Messaging.
- Improvised user experience
Blockchain has the potential to enhance the general user experience by offering a more effective, safe, and open method to participate in digital transactions and acquire virtual assets.
In the realm of gaming using blockchain, players have greater authority with respect to their gaming involvement, which has taken shape in numerous forms, such as enabling players to design their characters, plots, and gameplay. Additionally, it allows them to access multiple video games in various versions from varied locations without compromising their playing experience.
- Verified and Legalized
The utilization of a blockchain gaming platform guarantees the legitimacy of all dealings and interactions between different parties, thereby thwarting fraudulent activities that are commonly encountered in contemporary gaming platforms. Besides ensuring authentication, businesses can also utilize blockchain technology to confirm that no payments are done twice for same goods. This can also help ensure documentation of each transaction.
- Trading parts
Blockchain gaming facilitates item trading between players, which enables them to earn profits or obtain other valuable resources. As the Blockchain records each part and it’s owner, players can conduct transactions with full assurance that their things will not be replaced or copied. Moreover, it permits them to purchase or vend in-game things from other players.
- Maximizing rewards
By accomplishing quests and missions, players have the opportunity to receive cryptocurrency rewards in blockchain-based games.
In contrast to conventional games, where players get points that have no tangible value outside of the gaming environment, however blockchain-led games are different. Players can earn cryptocurrencies which can later be used as actual currency to get things from other players or make purchases on shopping websites.
- Option to create integrated gaming profiles
The rise of blockchain games has made establishing an all encompassing community where players can access multiple games easily. This setup permits users to maintain the application that they can utilize across a plethora of platforms, ultimately improving their playing experience and simplifying the process of accessing diverse games and procuring items.
In comparison to conventional gaming, blockchain games have become increasingly prominent in the gaming industry. Although there are numerous advantages to utilizing blockchain technology in gaming, some drawbacks are prevalent.
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What are the drawbacks of using blockchain led games?
Like with anything else, even blockchain technology in gaming entails some limitations; these are as given below:
- It is complex in nature
The complexity of playing crypto games stems from something other than their plotlines but from the actual gaming process itself. To start a game, a player must establish a user account, which is a simple task. However, based on the particular kind of game, a player may also be required to initiate a crypto wallet and purchase a specific amount of cryptocurrency, which can be a daunting task.
- Regulatory complications
The utilization of cryptocurrencies presents a challenge since regulation authorities still need to grapple with comprehending their mechanics and determining if they should be employed in gaming that is led by blockchain.
- Competitive nature
The gaming industry is exceedingly cutthroat, with recent games and platforms frequently introduced, rendering it arduous for blockchain-led games to rival older games.
Various blockchain-led games have been developed within the industry.
Future of gaming with blockchain technology
The outlook for blockchain technology in the gaming industry appears promising. With an increasing number of companies exploring the potential of blockchain technology, we anticipate a surge in the number of games that utilize Blockchain technology in the future.
Reports suggest that Web3 gaming represents the ultimate future, transforming the gaming ecosystem by providing players with ownership of gaming assets and greater control over decision-making delegated away from a single central authority. Major investors are now placing large bets on Web3 gaming, with a recent report from Dappradar revealing that $748 million was invested in developing new Web3 crypto games in August 2022. As such, we can make reasonable predictions about how web3 in gaming will shape the future.
It is important to note that web3 in gaming will not significantly impact the quality of the game itself. Rather, it will create new opportunities for integrating financial systems into games. The underlying blockchain technology, gaming cryptocurrency for secure payment rails, and digital asset ownership will propel the gaming ecosystem to new heights.
Brands must now develop new and improved gaming scenarios for multiple platform types and offer their players NFTs that are unique and capable of increasing interoperability and trading. They must understand that introducing new cryptocurrency games with robust gaming wallets will empower gamers within the industry, providing them with greater control over their digital identities.
The emergence of blockchain game development has caused a significant impact on the game market and is expected to be a lasting trend rather than a short-term fad. Blockchain technology will likely shape the major changes in the game industry. The mobile game industry is also looking to adopt blockchain technology to drive the next wave of innovations.