The gaming industry has grown by leaps and bounds and can rightfully claim the title for being one of the fastest-growing sectors. It has been ever curious about the latest technologies and has tried to implement it in their processes to generate substantial benefits to the endpoint.
The multibillion-dollar industry caters to over 2.5 million gamers around the world. What was valued to roughly $138 billion in 2018, is expected to take a trajectory to 9.0 percent CAGR amounting to around $ 196 billion by 2022. So, what does Blockchain has to do in this?
The Blockchain collaboration was initiated by the gaming industry as a tryout and it is still an ongoing process. The very first instance of Blockchain in gaming was the launch of Huntercoin in 2014, which is the first of its kind strategy centric MMO game with a decentralized approach. Its success cemented the gaming industry’s trust in Blockchain as a support technology for future game developments.
Several other gaming industry players followed in the path paved by Huntercoin, which started a revolution in the sector as a whole.
The Initiation of Blockchain in the Gaming Industry: Over the years, the gaming industry has been very fast in adapting and taking advantage of the latest technologies like Virtual Reality (VR), Artificial Intelligence (AI), Augmented Reality (AR) and the same thing repeated with the distributed ledger technology.
The Blockchain qualities of decentralization and transparency are of great value to the gaming industry. It can transform the way communication took place between the developers and the gamers. Mass adoption will also have a sheer impact on the way digital assets are attached and handled in a game.
Blockchain’s Impact on the Gaming Industry: What was started by Huntercoin was taken forward by the launch of CryptoKitties. Blockchain is an immutable ledger technology-fueled to the popularity of such games, as it made any alteration of the game data to be made by the player impossible. This helps builds a bond of trust between the players and the game developers. With a bag full of great positive qualities, Blockchain offers security to the developers as well as the players.
With Initial Coin Offering gaining traction, game developers started to take notice and advantage of the situation. They introduced decentralized applications or Dapps for gaming purposes on the Blockchain network. By the virtue of that, game developers have the benefit of developing games in a secured environment on the Blockchain. Previously there have been several instances of hackers disrupting the gaming networks. The high data encryption of Blockchain technology counters that as well.
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The modern gaming arena has close involvement with digital assets as well. These keep the player ahead in the game compared to his/her competitors. Blockchain allows enhanced security to players who want to trade the assets using digital currencies or cryptocurrencies, through the use of public and private key encryption. This practice will help build a secure marketplace of gaming assets.
It keeps the control and ownership of gaming assets in the hands of the players. The use of smart contracts will facilitate the trading of assets on the gaming platform and ensure that the transactions take place and get processed with transparency. Smart contracts process every transaction after ensuring that all the conditions have been abided by.
Like every other sector, the application of Blockchain is still in its nascent stages in the gaming industry. Theirs is still a lot of challenges in the path of complete adoption. However, so far the advancements show promise for the future of the sector.