Overview of the Gaming Market

The gaming industry has maintained rapid growth as a sunrise industry for the past 20 years. With the development of internet technology, the gaming industry is poised to become an even larger sector. One of the earliest applications of blockchain technology is in gaming. The combination of blockchain and gaming has brought about new changes to the market.

Gaming is one of the earliest and largest application areas for blockchain technology. The integration of blockchain and gaming is exciting because it empowers players and enhances their gaming experience. Through blockchain gaming, players can enjoy several key benefits:

1. Ownership of In-Game Assets

All items and elements within the game can be recorded on the blockchain. Whether it's scarce resources, rare items, coveted loot, or characters and avatars, any entity within the game environment can exist as encrypted assets.

Typically, on existing blockchain networks, this is represented as either fungible tokens (in the form of game tokens) or non-fungible tokens (in the form of items and avatars). The core component of blockchain is providing users with ownership of the value they possess. When game elements are recorded on the blockchain, they can interact directly with players. When avatars and accounts are linked to players' wallets, they can send their collected loot and accumulated currency to their wallets, which they have earned in the game. In such a system, players can reap what they sow. They possess a variety of rare items, which will forever belong to them. Developers have no authority to revoke anything won by players, even if the game is discontinued. Players can send items to other wallets, sell them to others, and profit in the real world. The ownership of their in-game assets enables players to reap tangible rewards from their efforts and successes.

2. Provably Fair Gameplay

Misleading gameplay experiences are detrimental to players. It is a terrible experience when players deceive opponents or when games do not operate as expected. Blockchain gaming can achieve "provably fair gameplay." When the game is recorded on the blockchain, the game logic and gameplay elements are also shared. The consensus mechanism that ensures the security of the blockchain network also ensures the security of the game. This means two things for players: firstly, cheaters or anyone attempting to infringe upon players' rights will not succeed. If their actions contradict the game logic, their activities will be rejected. Secondly, the game is transparent.

3. Interoperability Across Games

What do players do when they stop playing their favorite game? They either quit or the game disappears. That is, either the community leaves or the developers cease operations. Unfortunately, apart from finding the next game and starting from scratch, there isn't much they can do. Games exist in separate and isolated universes. In the current industry, there is no continuity between different games. With blockchain, this can change. When games and game assets exist on the blockchain, they can communicate with any other environment on the same blockchain.

If developers create a sequel to a game, the items from the previous game can be carried over to the second game. Avatars can be used in multiple games. Tasks or events can span across games. Most importantly, players may never have to start from scratch again. Ideally, players have a single universal avatar that they use across different games. Their virtual currency and items can be used across games.

4. Cost Reduction

The payment rate in the game development industry is low, and associated costs may exceed revenue. Without a viable revenue model, even with a certain user base, expenses such as game distribution, server maintenance, and player services may become burdensome for developers. By building games on the blockchain, all these costs can potentially be outsourced to miners or validators. Online game release and dissemination can become zero-cost activities.

5. Enhanced Player Base

Existing and future players in blockchain games are an interesting subset of the consumer population. These players have a strong interest in their gameplay and gain more attention through gaming revenue. Blockchain games connect developers with the "superplayer" community, providing more resources and investment in the gaming aspect. Compared to traditional game competitors, both parties can build a more positive, efficient, and mutually beneficial relationship.