Blockchain has tremendous potential in its applications, despite being commonly associated only with the fields of finance and cryptocurrency. The technology is being recognized for the transparency it provides and is being implemented across several diverse industry sectors. Art, energy and agriculture are some of the segments that are currently developing new and valuable applications for the technology. The versatility of blockchain technology has become quite popular in the gaming industry as well.
The gaming industry has been infamous for its issues in maintaining private data, hacking, high fees, fraudulent activities, and hidden odds. These issues can be easily resolved by using blockchain technology. This has already been implemented to some extent, with several developers incorporating blockchain technology to build trust among their players.
Here are a few ways blockchain technology can resolve problems in the gaming industry:
1. Making payment processing cost-effective
Due to the high internet speed and the increasing popularity of gaming mediums, games can now be accessed from anywhere in the world. Although players get the chance to leverage fiat currencies, they are not cost-effective. This leads gamers to pay high fees to utilize online gaming platforms. The traditional methods also leave them exposed to hacking and theft of data.
By using blockchain technology, gamers do not need to subscribe to such services using debit or credit cards. Regardless of how small the payment is, blockchain technology provides a decentralized method for processing it. This ensures safety and means that no hacker can steal or manipulate a user’s personal information.
2. Minimizing fraudulent activities
The gaming industry is notorious for its high count of online fraud. This gives it a bad reputation to developers and industry professionals alike as the stigma holds people back from creating purchases due to fear of being manipulated. As a result, game developers are constantly looking for ways to make their system more secure and save on lost revenue.
Blockchain has already demonstrated tremendous potential when it comes to eradicating fraudulent activities and saving billions for the gaming industry as a whole. Many companies have already begun using the crypto economy as a means of reducing fraudulent activities.
3. Storage safety and security
The threat of being hacked is not limited to gamers personal information. Hacking can also make them lose valuable items collected in a game. As a result, storing data online becomes risky for game developers. One of the best and most sustainable solutions to these problems is the level of encryption provided by blockchain technology. Data stored using blockchain encryption makes it almost impossible for hackers to access. This technology is safe as it requires correct nodes to be accessed at the correct time in order to have access. This provides gaming items with a double layer of security that prevents it from being breached.
4. Better control over gaming economy
The governments of countries have the ability to enforce certain bans or regulate the economies of an industry. Strict regulations provide opportunities for black markets to thrive, which is never good for any industry. Gaming companies share in this issue as well. Game developers, suffering from the prominence of black market traders, are losing control of trade and this limits their ability to gain maximum revenues from their products and services.
Blockchain technology, however, does not require the need to create policies. A game developer can simply collect royalties from their associated gaming ecosystems at predetermined regular intervals. Additionally, blockchain allows game developers to complete control over their assets, this means that they can buy or sell any of their assets without restriction.
5. Reducing the price of gaming items
The high prices charged for games and gaming items limits the number of the customer base for game developers. This is a prominent reason why gamers will often look to purchase or download pirated or bootlegged versions of games in the digital market. Blockchain technology, however, has the benefit of affordable micro-transactions. This feature allows game developers to sell their products and items at a much cheaper price without compromising on profits. Additionally, this also means that gamers have more control over their expenditure when accessing online games.
These five factors make it abundantly clear why blockchain technology is the next disruptive and transformative technology that will greatly influence the gaming landscape in the next few years. It is apparent that blockchain technology offers solutions to the gaming industry that are far better than the traditional methods currently being employed by the gaming industry.