Since its invention in 2009, the value of Bitcoin has gone from $0 to over $38,000 per coin (at the time of writing).
This massive growth has gone hand in hand with the increased use of blockchain technology, and the advancements made over the years have been huge. One of the more recent innovations is blockchain gaming, which is taking the internet by storm.
For a rundown on what blockchain gaming is, keep reading.
What Is Blockchain Gaming?
Blockchain gaming involves the use of blockchain technology to create games with several advantages that aren’t available in traditional games. It’s a new technology, so it’s still yet to reach its full potential, but there are already several game developers that have produced games using the blockchain.
Things on the blockchain are more secure and transparent, making for quick, safe transactions and a greater level of interaction between players.
Benefits of Blockchain Gaming
Using the blockchain for gaming has several advantages. These apply both to game developers and players.
Ownership of Assets
For years games have included shopping/trading features. You can buy all sorts of items in games for different purposes.
The use of gaming NFTs means that players can own such items outright. A gamer can trade their items with others without any input or interference from the publisher.
This isn’t just limited to items in-game but can include all kinds of things like skins, areas of land, and even characters.
The blockchain uses decentralized ledger technology which helps keep all transactions secure. Many games over the years have involved trading which people have been known to exploit.
Users have found ways to trick other players or even hack accounts to steal items. Gaming on the blockchain makes it much harder for people to do this.
Developers can look into various revenue models that weren’t previously possible. In recent years some games have introduced their own currencies for use in-game. Blockchain games do something similar with tokens.
This allows developers to easily charge players for special features in their games.
Players can use in-game currencies for secure microtransactions. Developers can choose to supply these tokens in various ways such as purchasing with crypto, in-game rewards, and giveaways.
Developers can even enable uses for their tokens outside of the game, and they can often be converted to other cryptocurrencies. Smart contracts can be used to ensure these transactions are quick and secure.
All data and records on a blockchain are stored on a distributed ledger. Anyone can see the details of any transaction which means players can see exactly what transfers are being made.
This means people can be sure that everything is fair and that the developers aren’t manipulating things in any way.
Blockchain Gaming Terms
If you’re going to get into blockchain gaming there are some terms you’ll need to know. Here are some of the most important ones.
One of the biggest appeals of blockchain gaming is play-to-earn features. These allow players to earn real-world money just by gaming.
This has been possible in the past, but only for professional players in competitions. Blockchain gaming makes it much more accessible to regular players.
This generally works through the use of the tokens mentioned above. Players can earn these, then sell them for another cryptocurrency. Depending on the game players may also be able to earn or create assets that they can then sell.
Some people are already serious players in the space, and in poorer countries where the money goes further people have been able to support themselves just by gaming.
This describes games where the player needs to make a purchase upfront to get an asset to use in-game. The appeal for gamers here is that these assets can grow in value with time.
Depending on the game, the player may be able to upgrade their asset, or earn others. This way their initial investment can turn into a profit.
This relates to the intersection of “gaming” and “finance”. It’s an umbrella term for all games that people can play to generate profits. Both play-to-earn and pay-to-earn games fall into this category.
The term “Metaverse” is used for digital worlds that people can enter and explore. They allow people to interact with each other in various ways and can include a range of services such as:
- VR (virtual reality)
- AR (augmented reality)
The main idea behind the metaverse is to create a bridge between people’s physical and digital lives.
What the Blockchain Means for the Gaming Industry
One of the biggest impacts the blockchain has had on the world of gaming so far is gambling. Many online casinos use blockchain technology for the advantages it offers over traditional online casinos. It makes the online casinos more resistant to hacks, more transparent, and faster.
On top of this, there aren’t any issues with international currencies, so a blockchain casino can be open to people from anywhere in the world.
For serious gamers, it also creates a way for them to turn their hobby into a form of income. Anyone with a passion for gaming can benefit from this. Even people who haven’t previously been interested in gaming may start to get involved as they can earn money from it.
The Future of Blockchain Gaming
As the technology advances, it seems more developers and consumers will move into the blockchain gaming space. It presents multiple benefits on both sides and has plenty of room to expand.
Sandstorm is an NFT marketplace that is helping to bring people into the blockchain gaming space. NFTs are based on Web 3.0, which is expanding fast. Check out this guide to see how Web 3.0 is changing the world.