Today, the continued growth of the video gaming industry has created a demand for new and innovative payment methods. Most gamers are familiar with sites like Gameflip or OPSkins, where they can sell in-game currency or buy premium accounts to access additional features. However, gamers often don’t know that there is a much larger market for players that want to sell their in-game items outside of these sites with a fair and equitable exchange rate.
Gamers and the Gaming Industry
The gaming industry generates more than $100 billion annually and is expected to grow to over $130 billion by 2020. With such growth, the demand for new payment methods has also increased. The gaming industry is at a tipping point where it doesn’t make sense for players to deposit large sums of money into games when most will never be able to play them again once they have paid for them.
For example, one player might spend $50 on virtual goods in a game only to find out that that game costs another $60 each time they attempt to play it after that. This leads them to abandon any desire they have ever had to play the game again—which is why it makes sense for developers and publishers alike to adopt platforms like blockchain technology that can eliminate this problem while simultaneously providing other benefits.
What is Blockchain?
Blockchain is a database technology that lets anyone make and store highly secure digital records. The records are called “blocks” (hence the name “blockchain”) that are linked and secured using cryptography. This is a very trusted system because it uses “blocks” of data connected by “chains” that are created by code. Each block contains a hash of the previous block, meaning the blocks are connected. This makes it almost impossible for the data in any block to be altered without someone noticing because the data in the next block will also change for anyone who tries to change a block.
Why is Blockchain Needed for Gaming?
Gamers don’t want to deposit funds into games they will never see again. However, they want to be able to trade items and receive rewards. Blockchain allows gamers to create a decentralized network to create their virtual currency. Then, they can use that virtual currency to sell items and receive rewards like loyalty points. Blockchain allows gamers to participate in a global economy that will enable them to get rewarded in a way that they find valuable without involving large intermediaries like gaming platforms.
Gaming Using Blockchain:
The first blockchain application for gaming was CryptoKitties. CryptoKitties is a game that uses blockchain technology to let gamers breed digital cats and feed them “kitty food” that can be purchased with cryptocurrency. The developers of this game say that the game has about 6 percent of the daily active users of the Ethereum network. Similar games created include Enjin Coin, a blockchain application that allows gamers to create and manage virtual items.
The game allows gamers to create virtual items and then trade those items with one another. Users can also create virtual items that represent real-world things. For example, a user might want to make a virtual item that represents a car. Then, the owner can list the car on the blockchain so that everyone who has the game can see the vehicle listed.
Advantages of using Blockchain for Gaming
Security:
Each blockchain transaction is recorded and securely stored using hash code technology. This makes it almost impossible for hackers to alter the data without someone noticing it.
Fair Trade:
Unlike centralized platforms like Steam, where games are charged a fee for using their platform, blockchain applications are entirely free. This means gamers don’t have to pay a fee to use the application.
Immune to Matchmaking Issues:
Matchmaking is when someone is turned away at the door because they don’t have the correct type of virtual items or levels to play a game. There are typically two approaches to resolving this issue. The first is by charging a fee or giving out bonuses to people purchasing virtual items. But neither of these solutions makes sense because they make the game itself more expensive than it already is.
Disadvantages of Using Blockchain for Gaming:
Slow Transactions:
Blockchain transactions are much slower than centralized platforms because the system has to record each transaction and verify the data. This can take a long period of time to complete.
High Transaction Fees:
The Ether network charges a small fee for each transaction, which can be problematic for gamers who want to make frequent transactions.
What is the Ethereum Network?
Ethereum is the most popular platform for blockchain gaming. It allows gamers to create decentralized applications and use their virtual items on the blockchain.
Final Words:
Gamers don’t want to deposit funds into games they will never see again. However, they want to be able to trade items and receive rewards. Consumers want to use their virtual assets to play games, receive tips, and earn the most money possible. Blockchain allows gamers to create a decentralized network to create virtual currency and use it to play games and earn rewards.
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