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How Blockchain is Changing the Gaming Landscape

Red is a computer and video game enthusiast working as a Freelance Computer Troubleshooter. When not tinkering, he is gaming.

Photo by GuerrillaBuzz Crypto PR

Photo by GuerrillaBuzz Crypto PR

Gaming is a $101 billion industry, with virtual goods and in-game micro-transactions accounting for nearly half of that. It’s no wonder that blockchain technology is now infiltrating the gaming sector. And since gamers are so passionate about their pastime, digital tokens make for an ideal way to reward players for their time and achievements while also letting them trade those tokens on secondary markets. This article will explore the ways that blockchain technology can revolutionize everything from virtual economies to user identity management in games.

Blockchain Basics

A blockchain is a decentralized ledger that stores information about transactions between two parties. Those transactions are verified by a network of computers, and the ledger is then updated across the entire network. This decentralized nature makes blockchains ideal for peer-to-peer transactions, particularly those that occur across international borders. Blockchains also make it easy to track the provenance of assets, like virtual goods and in-game currencies, without requiring a central authority. And since blockchains are open-source, they can be integrated into any number of game environments.

This decentralized nature makes blockchains ideal for peer-to-peer transactions, particularly those that occur across international borders.

Virtual Goods and Micro-Transactions

The idea of in-game micro-transactions has been around since the advent of online gaming. And with nearly half of all gamers playing free-to-play games, virtual goods have become a vital source of revenue for developers. But what happens when someone buys a virtual item? How are those items tracked, and how does the player prove ownership? And what happens if the company behind the game shuts down? Blockchain technology can help solve all of these problems. Blockchain-based virtual item networks operate as decentralized marketplaces that allow gamers to buy, sell, and trade items. Like real-world asset registries, blockchain-based networks can track the authenticity of virtual items. And each transaction is recorded across the network, meaning that gamers can prove ownership of their virtual goods in perpetuity.

Blockchain-based User Identification

Biometric ID systems, like fingerprint scanners and eye scanners, are already changing the way we log into our devices and online accounts. But these systems have their limits: they can fail because of wear and tear or because someone is trying to impersonate you. Meanwhile, every gamer will inevitably be asked to prove their identity to log into certain games. But that’s not always easy, particularly if you’re a young person who doesn’t have an established identity or credit history. Blockchain technology has the potential to solve this problem. By linking a user’s blockchain identity to their online gaming account, developers can verify that the person logging in is the same person behind the account. This makes it easier for young people to log into games, proving their identity without needing to submit paper documentation.

Real-world Asset Tracking and Transparency

Real-world assets, like houses and cars, are often associated with significant amounts of fraud. That’s because there’s no easy way to track these assets across a network, making it easy for someone to sell a car or house that doesn’t exist. But with blockchain technology, you can track the history of any real-world asset. And since blockchains are decentralized, you don’t need a single authority or database to host the information. This makes the blockchain technology ideal for managing game economies. For example, a blockchain-based game world might have a finite number of rare resources. By tracking those resources across the blockchain, you can ensure that no one is cheating the system.

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Infinite Game Worlds With No Borders

The best games often create vast, open-world environments where players can engage in all kinds of activities. But in many cases, those environments are limited. Developers may be reluctant to add new game mechanics to a game that’s been around for years. Or they may charge money for certain upgrades and items. Game developers also need to think carefully about user jurisdiction. For example, some games aim to be played by everyone. Others are designed for specific regions, like China or the EU. And, in the case of multiplayer games, developers may have to think about how to handle player interactions. That’s particularly true in virtual worlds where players can engage in activities that have real-world consequences, like theft or murder. But blockchain technology can help game developers create games with no borders. By building games on top of blockchain networks, developers can ensure that users can interact with each other across game environments.

Final Words

While the gaming industry has long been a frontier for new technologies and digital innovation, it's only now, with the advent of blockchain technology, that players are truly able to experience the full potential and power of gaming. With the ever-growing popularity of digital assets and their importance for the gaming industry, blockchain technology has become a logical next step for the gaming landscape. Now is the time for gamers to embrace the blockchain revolution, and reap the benefits of this great technological shift.

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

© 2022 Red Fernan

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