The use of blockchain technology has erupted in recent years, allowing for the creation of new systems and revolutionizing entire industries. While the gaming industry has come a long way since its humble beginnings, it really must attribute its current revolution (being dubbed GameFi) to blockchain.
Blockchain provides the solution for several long-standing problems faced by the gaming world.
-Enhanced in-game asset ownership
-Increased value projection of digital assets
-Interoperability & integrated gaming profiles
-Improved payment methods
-Ability to collaborate, construct, and earn rewards through blockchain-gaming mining procedures
Historically, microtransactions were used in free-to-play games or freemium models to create a revenue stream for developers. Microtransactions are a business model where users can purchase virtual goods with micropayments. You’ve most likely encountered microtransactions through the use of mobile apps or console gaming. These in-app purchases (think items such as costumes, special characters, accessories, extra lives, unlocking a new level, etc.) have inadvertently created a divide within the gaming community with the emergence of a “pay-to-win” mentality. Ultimately, an artificial pay barrier is created and those who have the means to funnel financial resources into in-game content benefit the most.
The incorporation of blockchain technology and NFTS in gaming ecosystems is changing that and a new “pay-to-earn” structure is at the forefront. An entirely new all-digital economy has been born. One where users can be rewarded for their engagement and are offered avenues for value creation. In-game items are earned as the user advances their way through the levels or perform specific tasks. As we plunge deeper into the metaverse, there is an ever increasing need for interoperability and a seamless user experience. Blockchain delivers just that.
Tokens are attached to games so that users know where they came from and what they’re worth. Token transactions allow for interoperability between ecosystems and greater security since they do not require personal information like full name, address, or CVV code when you purchase something with them.
Blockchain technology makes it possible for users to trade digital assets outside of the game server. Previously, your in-app purchases lived in that unique app, had no value outside of that particular app, and expired once you moved on from that app experience. Now users have the ability to create 1 user profile on the blockchain which may be used to seamlessly access various game portals. And those in-app purchases? They’re still yours to keep, transfer from one blockchain to another, and potentially utilize in a new game. In-game items may also be sold on secondary markets, creating another revenue stream, building community, and fostering greater engagement. Users now have more control over their items and it gives companies an opportunity to generate additional revenue outside of the game.
Even though best practices are still being developed, it is clear that both gamers and developers have eagerly accepted the adoption of blockchain technology and that the future of gaming is centralized around the roles of the blockchain & cryptocurrencies.
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