Gaming has always been an integral part of our lives. From 8-bit gaming consoles back in the day to virtual reality gaming today, the gaming industry has been like a sponge absorbing all technological advancements coming our way. The latest addition to the gaming industry has been the integration of blockchain.
Over the last couple of years, blockchain-based gaming has shaken up the gaming industry by racking up huge numbers and gaining attraction from all over the world.
Naavik estimated that the blockchain gaming market will grow at a CAGR of 100%, from $1.5B in 2021 to $50B in 2025 while the traditional gaming market is expected to grow at a CAGR of around 10%. This means that the blockchain gaming industry will grow 10 times faster than traditional gaming.
It is clear that the gaming industry is always hungry for innovation, and with the power of blockchain, we can only imagine the technological disruption and the sequential displacement of the centers of influence on the gaming market. In this article, we will explore the top 5 reasons why games with blockchain will push the boundaries of innovation in gaming.
1. Gamers can now truly own in-game assets
In modern gaming, you need in-game assets to complete missions and level up in games. You need items, characters, art, or other things to make progress. Until now, these in-game assets only helped a gamer make progress in a game but by integrating blockchain into gaming, gamers can truly own these in-game assets in the form of non-fungible tokens (NFTs) or tokens that are tradeable in the open market.
This means that along with the satisfaction of making progress in a game, a gamer will also be able to turn his in-game assets into real-world assets such as cash or cryptocurrency. In traditional games, players receive rewards that hold no monetary value in the real world, but blockchain has transformed this aspect of gaming. Gamers are now incentivized to earn rewards that they can use as real money to trade items from other players or to simply turn a profit by playing a game.
2. Immutable Security
Most games need to have in-game transactions that gamers make without adequate security measures. This leaves users susceptible to hacks, thefts, and online frauds when the trust is put into the wrong game. However, blockchain technology solves this problem. In games with blockchain, all transactions and interactions between players and third parties are verified on a distributed ledger technology called the blockchain.
Blockchain is secure, transparent, and immutable. It significantly eliminates the possibility of fraud and adds a layer of confidence for gamers, which subsequently increases the value of the games too. This added trust factor means games that rely upon in-game transactions for revenue are likely to get a push as players would be more likely to make transactions in games with blockchain.
3. Transparency and Verifiability
Competitions, tournaments, and events are a core part of the gaming industry. Gamers love to compete with one another and show off their skills to their peers by coming ahead of one another. Blockchain technology simplifies this process by making it easier to track progress and verify the winners of the game. As every action is stored on the blockchain, the game can be designed in a way to automatically verify winners and consequently reward them.
Gaming is a global phenomenon where players from all over the world enjoy different games and earn various digital items. These in-game items are restricted by virtual walls created by their developers in traditional gaming. But imagine how cool it would be if you could use an avatar you won in one game as your character in another game? Blockchain can make this happen!
In fact, games with blockchain can allow gamers to use any in-game asset from one game to another.
With NFTs and smart contracts in play, gamers are verifiable owners of their in-game assets which they can take out of one game and make use of in another game. Blockchain allows a game development studio to create a digital ecosystem that is no longer restricted to one game and opens up all kinds of possibilities for games, players, and developers.
5. Win-Win for both Gamers and Developers
Traditionally, gamers pay for games while large game development studios make a profit off users in a one-way relationship. Blockchain has completely revolutionized this and changed the way games are played. Today, gaming ecosystems are based upon a win-win principle where both developers and gamers can benefit.
The mechanisms of blockchain allow games to reward players in different ways to make playing a game worth their time and effort. This growing trend of rewards and monetary benefits is a point of attraction for gamers as they can easily liquidate their rewards. This model also works for developers too as they benefit from the increased value of their tokens/NFTs as more and more players get attracted to the game.
Overall, gamers benefit by earning money while playing an immersive game and developers benefit by building a secure, cost-efficient, and transaction-pushing game environment.
Blockchain technology opens up an opportunity where talented coders and creative game designers can put on their thinking hats to open up an entirely new way for gamers to experience gaming in the future. It may take a few more years to see the widespread use of blockchain in gaming, however, we can surely expect a more transparent, secure, and dynamic gaming environment in the future.
About Super Ultra:
Super Ultra is a game development and publishing studio based in Hong Kong. With a team of seasoned game developers, blockchain developers, and creatives, we are gamers at heart looking to bring accessible and addictively fun games to the world and most importantly - put the players’ first.
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