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The value of the gaming industry is expected to reach a mind-boggling $89 billion by 2019. The gaming industry is one of the biggest of its kind as there are more than 2 million active gamers all over the world.
Gaming is one of the many industries around the world which can get disrupted completely, by blockchain technology. The primary reason for such enthusiasm in this sector is that blockchain technology comes with a host of solutions for the majority of the problems faced by the investors, developers, and gamers in the industry.
For example, there are numerous issues such as slim profit margins, stringent regulations, and oligopolistic practices, which hamper the experience of users. Also, the small game studios have to endure through difficult times on a regular basis, as their revenue structure is quite small.
Although adoption of blockchain is in its infant stages, numerous startups have already joined the bandwagon. To help you understand why blockchain technology is revolutionary to the gaming industry, here are six ways it will change the sector forever:
Add value to gaming items in real life
Every gamer, whether they are casual or serious, have spent a significant portion of their money and time to earn valuable “in-game rewards.” The rewards can range from a wide variety of items such as rare skins, weapons, powerups, and badges. For example, in Dota 2, one of the most popular online multiplayer battle area games, has many items worth hundreds of dollars. However, one of the biggest problems in the gaming industry is that the value of these items is extremely low in the real world.
Due to this reason, when the game loses out on its large user base, these items don’t have any value to anyone. Imagine playing countless hours, to unlock a rare item. After a couple of months, you find out that you can’t do anything with the item as the game is no longer popular among gamers. Blockchain technology will help in the creation of platforms, which allow gamers to trade the items for money, giving them value in the real world.
Co-creators get rewards
Earlier, there weren’t any systems in place, which allowed companies to reward gamers who were responsible for co-creating video games with them. As blockchain technology is becoming mainstream, it allows companies to develop models, where co-creators can get financial rewards for their time and effort.
As the users get incentives for their work, the industry no longer has to deal with situations where co-creators don’t get paid. It will improve the quality and quantity of work done to develop video games. The gamers who were a part of the testing team will get rewards for their efforts. Also, developers can give proper credit by licensing content generated by users who were responsible for improving the experience of the game.
Gaming economy gets regulated
When games with rare items get extremely popular among their target audience, a huge problem arises for the developers. They have to stop the users from trading the items through unfair practices, which disrupts the experience and the economy of the video games. However, the developers cannot ban trade completely as it will lead to the creation of black markets, where exchanges can take place without any regulation. Developers are at a disadvantage as they can’t stop their users from getting scammed by fake websites. Even if the users face severe bans, they will break the rules to obtain these items.
Blockchain offers a sound solution to this problem as the developers can use this technology to collect royalties for the items, every time a trade takes place. Also, the developers can keep track of these items, to ensure that there are only fair trade practices.
Safe storage of all types of data
As technology is growing at a significant pace, hackers are gaining access to various techniques, allowing them to find weak points in various large systems in the gaming industry. All the player in the industry, such as the studios, developers, and players are concerned about security, as cybercriminals can get access to valuable, sensitive, and confidential information.
Rather than putting everyone at risk, the industry can implement encryption in the blockchain ledgers. The industry can use these ledgers to store statistics, currency, and digital assets, protecting them from the hands of cybercriminals. As the data distribution takes place throughout the blockchain, it becomes next to impossible for cybercriminals to hack the network.
With the integration of blockchain technology in the gaming industry, all the changes it brings about will only improve the experience for all the stakeholders. It will bring about a revolution, as the future as the video games will become more profitable, rewarding and flexible for the developers and gamers!
Brought to you by BlockchainSingapore.