What is Blockchain Gaming, and how is this Changing the Industry?

To put it as simply as possible, Blockchain gaming involves owning your digital game assets in real life, and being able to make genuine purchases with the currency. Blockchain represents the next generation of gaming, as the real use of digital items is innovative and exciting for everyone involved in the gaming industry. By creating a society without borders, gaming can become a lot more in depth and meaningful.

The Merging of Reality and Fantasy

A prime example of Blockchain gaming is Spells of Genesis, which integrates bitcoin into its mechanics via Blockchain technology. The currency within the game is known as BitCrystals, which counts as a Counterparty asset to be traded externally. Game cards can also be issued, and these can be exchanged amongst players outside of the game, merging the world of fantasy into the real world. This is changing the gaming industry massively, as it is allowing gamers to indulge into their favourite video games in real life, making the gaming experience much more magical for players.

Another example of this merging can be found in Beyond the Void, which is an upcoming game that involves real-time strategy. However, the difference here is that the game uses the Ethereum Blockchain as the tent pole, making it a massive aspect of the game. The currency within the game, known as Nexium, is an Ethereum token which can be used to purchase game assets, covering skills or motherships. Therefore, because of Blockchain, players can obtain proper ownership of game items, putting them in complete control of their assets. As the team behind Beyond the Void have partnered up with EverdreamSoft, the cards featured in Spells of Genesis will also be used in this game as well.

Another popular massively multiplayer online role-playing game (MMORPG), RuneScape  is now accepting cryptocurrencies like bitcoin as a payment method.

Benefits to the Gaming Industry

Within the industry, there are a range of issues that developers can find difficult to tackle due to the introduction of digital assets. However, with the advancement of Blockchain, these particular problems can be tackled in a simple way. Now that assets are being stored digitally, they are an easy target for skilled hackers, making safe guards crucial to prevent hackers from committing fraudulent behaviour and luring gamers into a scam. By introducing Blockchain, however, transactions can be made transparent. What this means is that users will have a decentralised record of asset ownership, making hacking increasingly difficult due to easy detection of any dodgy behaviour. Despite this, there have been rare incidents where gaming companies have exploited bitcoin users, so work is still required to ensure that the technology is completely secure.

Furthermore, without Blockchain, gaming transaction can take a relatively long time to reach the developers as they’re often done through a third-party. But, payments are made instant with Blockchain, as the need for a third-party is destroyed. With Blockchain currency, in-game purchases can be made instantly with rewards being received just as quickly, too.

Decentralised Game Logic

Of course, Blockchain hasn’t been around forever, so there are many new exciting things planned for the future. Whilst the technology revolves around digital asset transactions at the moment, it could bring several new ideas for decentralised game logic. This would involve using Blockchain technology to allow individuals to host their own games or, even better, develop their own games. Not only is this an exciting idea to look out for, it also means that aspiring game developers can gain experience and knowledge about what game development involves, introducing new aspiring developers into the industry.

This will be a huge change to the gaming industry, as indie developers and smaller teams of people have to rely on smaller programmes such as Steam to sell games to an audience. Of course, this limits profits that gamers can make as these kinds of platforms take a considerable cut of revenues, making it harder for aspiring developers to become successful in the gaming industry.

Alterations in Game Mechanics

Encouraging gamers to utilise their in-game assets is extremely smart, as they’re likely to put in more funds into games that they get joy out of playing, without worrying about losing any money or assets. As cryptocurrencies become more popular, it’s become increasingly common for people to seek out ways to earn money through bitcoin. Blogging is one of the most popular ways that people are earning bitcoin and gaming is another. Now that gaming transfers and trades all rely on the existence of Blockchain, no reverse transactions or fake items will exist due to the clever technology behind Blockchain. Therefore, game mechanics have changed as games are built around bitcoin or Blockchain technology, resulting in numerous special features.

The Effect it has on Currency

Despite all of the positive outcomes of Blockchain, the introduction of it into the industry can result in a lot of jobs being destroyed, particularly ones that revolve around financial services. Not only have developers tested the Blockchain technology in your average games, but they’ve also tested it in online gambling as well. But, as Blockchain is highly associated with bitcoin, there are still many benefits, as the total value of bitcoin currency is close to $9 billion, so it’s no surprise that it’s named “digital gold”. Therefore, Blockchain can expand into other fields other than financial ones, providing users with actual value that they might not receive from other games on the net, such as World of Warcraft. Even though digital assets will be massively affected, the effect on actual currency is still yet to be made clear.