The word “Blockchain” evokes thought of Bitcoin in most people, as that is the most popular use of this technology. However, the technology has wide use in many other sectors other than finance, which includes the real estate, agriculture business, and marketing sector. Currently, it is also being used in the online gaming industry too.
Before exploring the use of blockchain technology in the online gaming industry, let us first understand what this technology is.
It is a decentralized virtual ledger that is public and very secure. The virtual ledger keeps a record of all the transactions done and is irreversible; that means once the record has been created, it cannot be modified or deleted. As it is decentralized so it is not under the control of any specific company or individual, hence making it less vulnerable to any kind of tampering and restrictions.
Blockchain has tremendous potential to change the way business is done and also has the power to take any sector to a different level.
At present, the majority of virtual games follow a centralized model. In this model, all the data related to the game and customer information is stored on a centralized server, which is under the complete control of the game administrators. The server data includes account information, records of all the events, and in-game collectibles collected by the players.
In this model, the players have no ownership of the in-game assets collected and also their accounts. Also, centralized servers have their own limitations like server malfunction, which could also lead to disruption in the game. Also, much vulnerability arises, some of which are:
Blockchain technology eliminates or mitigates almost all of these issues.
As blockchain uses a distributed database, so it is easy to verify and also secure all digital data, such as in-game events, tokenized assets, and account details. The aim of using a blockchain-based system is to give the players the power and also make the system transparent.
Player gets to enjoy complete ownership of their digital assets, and also have the freedom to trade these anytime.
Ownership to players: Blockchain-based games give the players the right to own and compete with in-game assets such as in-game cards, skins, and characters. Each of these assets is denoted by a non-fungible token (NFT), which is maintained by the distributed network.
Decentralized trading of assets in the game: Gaming companies hold power to influence the drop-in rate and economy of games. They also decide which of the items in the game can be traded and manipulate them as per their convenience and to maximize their profit.
Games built on blockchain networks are a stark contrast to this. These games allow setting up of decentralized marketplaces. These marketplaces enable all the players to freely trade their in-game assets among their peers.
Structured payment system: Blockchain network increases the speed of financial transactions. They facilitate payments and trading between players-to-players and between players and game developers.
It also enables payments through cryptocurrencies in leading casinos like Bao casino, eliminating the need for a third-party institution. This reduces fees and removes any transaction charges. The blockchain network ensures a quick, secure and safe transaction medium.
Inter-game token trading: Due to the tokenization of in-game items, players have the liberty to trade assets between different games on the same blockchain. This allows players to use their virtual assets while trying out new games.
As digital tokens represent gaming assets, gamers can trade them on the marketplaces of other games that are hosted on the same blockchain network.
Unlimited Games: After a point of time when developers are at a loss of ideas to develop on the existing game, or the popularity of the game reaches a plateau, the project is closed. If the game is developed on the blockchain network, then even after closure of the project, it is available to gamers as long as the blockchain is alive.
This gives other developers on the network an opportunity to develop further on the abandoned game project. This could be seen as a good platform for novice developers to hone their skills.
Startups that do not have the fund or set up to develop a large game could use the virtual network first to launch a small game and then keep developing that game and expanding it. They could also make it an open game allowing other developers to help them out and reducing establishment cost.
Fair play: Online casinos are the current fad. The most common concern is of the casinos of fairly conducting the game. Blockchain eliminates this fear by making use of random number generators (RNG); so that the outcome of slots and table games are fully decentralized and verifiable.
The decentralized network along with ensuring the security of the data is allowing developers to unleash their imagination, thereby giving them the experience of a lifetime.