IT systems analyst and smart contract developer
By now, most industry enthusiasts are well aware that cryptocurrencies are far from the only use case associated with blockchain technology. Industry-wide disruptions are underway and you need to prepare for them.
This article will discuss the purpose of blockchain within the gaming industry, thus highlighting not only its main benefits, but also how a series of blockchain-based projects are revolutionizing the market as we know it.
A Quick Introduction to Blockchain Technology
To simplify matters, blockchain technology can be described as a distributed ledger, similar to a database, which processes and records transactions. It uses a number of design principles including decentralization, immutability, transparency, security, low costs, and fast transactions.
When used for financial purposes, it serves as the basic infrastructure behind most of the world’s cryptocurrencies. When used for governance purposes, it allows token holders to vote on key decisions within decentralized autonomous organizations.
When tapped into supply chains, blockchain helps track how products are made, moved, and sold.
However, many experts now agree that blockchain is poised to revolutionize the gaming industry as we know it.
The cross-integration between these two markets is intended to encourage mass adoption, as well as the creation of a fair, open, transparent, user-friendly and economically viable gaming ecosystem.
Disrupting the Gaming Industry with Blockchain Technology
The gaming industry has changed rapidly in recent times. We have seen the emergence of in-game economies, virtual worlds, esports, highly competitive gameplay, P2P integrations, community building and much more.
Despite the satisfaction of gamers around the world, the gaming industry is not without its flaws. Some of the main challenges that developers and gamers have faced include lack of confidence, inadequate in-game savings, disadvantageous microtransactions, and a lack of revenue streams for gamers despite their skill level.
We believe blockchain use cases in the gaming industry are best explained through examples and side-by-side comparisons. Without further ado, here’s a look at three blockchain use cases and projects that are rapidly reshaping the industry.
1. The dawn of NFTs for in-game economies
Most games feature in-game items that can be obtained through farming, skillful gameplay, or completing specific tasks. These items have inherent stats, so when equipped, they increase a player’s power. While many in-game items are common and can be easily obtained by players, most of the game worlds have introduced epic and legendary items with significant stats.
These are rarely obtained and there is often a limited number of such items, so there is always competition to get them before the servers run out.
With non-fungible tokens, these items can be freely traded in blockchain-based marketplaces, in exchange for cash or other in-game benefits. By implementing blockchain technology, players can rest assured that their items are truly unique, rare and precious.
Projects that make it easier to create and market NFT are quickly attracting game developers and users around the world. Rarible is a relevant example – as a community-owned NFT marketplace, users can create their own NFTs without using any code, which can then be sold for flexible royalties.
Rarible includes a full-fledged marketplace with a wide range of NFTs, many of which are powerful game elements. OpenSea is similar to Rarible and works by asking customers to buy, sell, and explore limited edition products.
So far, the NFT market has passed $ 148 million in trading volume, and most statistics seem to suggest the market is still growing, as NonFungible reports.
2. Provide players with lucrative income streams
The revenue streams for gameplay already exist, but the traditional ones are usually only suitable for highly skilled players who participate in esports tournaments. Successful live broadcasters can also generate huge profits through viewer subscriptions and brand sponsorships. Although profitable, these two categories only serve a limited percentage of players worldwide.
ExeedMe is an innovative project that harnesses blockchain technology, decentralized finance, and non-fungible tokens to create additional income streams for gamers.
The project was designed to serve players regardless of their actual skill level. As a Polkadot-based platform, ExeedMe works by setting up gaming tournaments that include a prize pool. Whoever wins the tournament can access the prize pool, thereby earning an income.
The platform also includes an incentive mechanism designed to encourage other users to bet on who will win a specific tournament. In exchange for betting on the players, bettors earn XED tokens.
Through ExeedMe, users can also earn rare NFTs, which can then be sold on the open market for a profit. The project has been praised by the industry for facilitating efficient matchmaking, while implementing anti-cheat protocols to maintain fair gameplay.
With ExeedMe, game enthusiasts, professional gamers and even beginners can earn profit by enjoying their favorite titles. As ExeedMe expands, gamers all over the world will access lucrative incomes simply by indulging in their favorite hobby.
3. Facilitate fan engagement in sport and entertainment
Despite the sheer size of the sports and entertainment industries, fans tend to be left behind due to unsatisfactory engagement efforts. Chiliz is a blockchain platform with a proprietary token that aims to increase user engagement.
The project also developed Socios, a fan engagement platform that can be used to buy tokens from popular sports teams. Fan Tokens grant holders voting rights, which can be used to influence team decisions. In return for the vote, fans receive rewards for their favorite moments as well as recognition.
This is also applicable in the entertainment industry, because by pooling their resources, fans can seamlessly decide what their favorite artists will do next.
Of course, this implies that sports teams and animators agree to use the platform. Luckily, many of them are excited to engage with their fans and have therefore opted for.
To conclude, these are just a few examples of how blockchain technology can improve the gaming and entertainment industries. As adoption grows, project managers around the world will surely choose to integrate blockchain into their offerings. Concepts such as player satisfaction, user retention, openness and decentralization will shape the future of the gaming industry, creating exciting new use cases.
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