Today, the continued growth of the video gaming industry has created a demand for new and innovative payment methods. Most gamers are familiar with sites like Gameflip or OPSkins where they can sell in-game currency or buy premium accounts to access additional features. However, gamers often don’t know that there is a much larger market for players that want to sell their in-game items outside of these sites with an exchange rate that is fair and equitable. The gaming industry alone generates more than $100 billion annually and is expected to grow to more than $130 billion by 2020. With such growth, the demand for new payment methods has increased as well. The gaming industry is at a tipping point where it doesn’t make sense for players to deposit large sums of money into games when most of them will never be able to play those games again once they have paid for them. For example, one player might spend $50 on virtual goods in a game only to find out that that game costs another $60 each time they attempt to play it thereafter. This leads them to abandon any desire they have ever had to play the game again—which is why it makes sense for developers and publishers alike to adopt platforms like blockchain technology which can eliminate this problem while simultaneously providing other benefits as well.

What is Blockchain?

Blockchain is a database technology that lets anyone make and store highly secure digital records. The records are called “blocks” (hence the name “blockchain”) that are linked and secured using cryptography. This is a very trusted system because it uses “blocks” of data connected by “chains” that are created by code. Each block contains a hash of the previous block, which means that the blocks are connected. This makes it almost impossible for the data in any block to be altered without someone noticing because, for anyone who tries to change a block, the data in the next block will also change.

Why is Blockchain needed for Gaming?

Gamers don’t want to deposit funds into games that they won’t ever see again. However, they want to be able to trade items and receive rewards. Blockchain allows gamers to create a decentralized network that allows them to create their own virtual currency. Then, they can use that virtual currency to trade items and receive rewards like loyalty points. blockchain allows gamers to participate in a global economy that allows them to get rewarded in a way that they find valuable without involving large intermediaries like gaming platforms.

Gaming Using Blockchain

The first blockchain application for gaming was CryptoKitties. CryptoKitties is a game that uses blockchain technology to let gamers breed digital cats and feed them “kitty food” that can be purchased with cryptocurrency. The developers of this game say that the game has about 6 percent of the daily active users of the Ethereum network. Similar games that have been created include Enjin Coin, which is a blockchain application that allows gamers to create and manage virtual items. The game allows gamers to create virtual items and then trade those items with one another. Users can also create virtual items that represent real-world things. For example, a user might want to create a virtual item that represents a car. Then, the owner can list the car on the blockchain so that all people who have the game can see the car listed.

Advantages of using Blockchain for Gaming

– Security- Each blockchain transaction is recorded and securely stored using hash code technology. This makes it almost impossible for hackers to alter the data without someone noticing it. 

– Fair Trade – Unlike centralized platforms like Steam, where games are charged a fee for using their platform, blockchain applications are completely free. This means that gamers don’t have to pay a fee to use the application. 

– Immune to Matchmaking Issues- Matchmaking is when someone is turned away at the door because they don’t have the right type of virtual items or levels to play a game. Typically, there are two ways to solve this problem. The first is by charging a fee or by giving out bonuses to people who purchase virtual items. But neither of these solutions makes sense because they make the game itself more expensive than it already is.

Disadvantages of using blockchain for Gaming

– Slow Transactions – Compared to centralized platforms, blockchain transactions are much slower because the system has to record each transaction and verify the data. This can take a long period of time to complete. 

– High Transaction Fees – The Ether network charges a small fee for each transaction, which can be a problem for gamers who would like to make frequent transactions. 

– What is the Ethereum Network? Ethereum is the most popular platform for blockchain gaming. It allows gamers to create decentralized applications and use their virtual items on the blockchain. 

Final Words 

Gamers don’t want to deposit funds into games that they won’t ever see again. However, they want to be able to trade items and receive rewards. Consumers want to be able to use their virtual assets to play games, receive rewards, and earn the most amount of money possible. Blockchain allows gamers to create their own decentralized network that lets them create virtual currency and use that currency to play games and earn rewards.

Spydra is building a next-generation API-driven Web3 platform for businesses to enable them and developers to leverage the full potential of Blockchain and the Decentralized Web Infrastructure. Our enterprise blockchain solutions support extensive use cases across various industries to cater to the needs of each unique business out there and provide them with scalability and interoperability. Spydra combines the most powerful developer tools in blockchain with helpful resources, a talented community, and prompt support. Check out our recent launch of “Hyperledger Fabric Debugger”, an Extension for Visual Studio Code to help developers build and debug Chaincode right from within the IDE.
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