The extremely competitive gaming industry is under a constant state of stress. This could be attributed to the constantly evolving technology landscape, intense competition, changing consumer habits and lack of regulation, which paves way for an unstructured industry where competitive edge becomes difficult to sustain. While the industry has been strongly impacted by technologies (AR, VR and AI) offering immersive experiences, the need for a revolutionary technology that can address the loopholes while transform it into an economic endeavor rather than being just an entertainment activity is strongly felt.
Today, with around 70 % of American population playing video games, the gaming industry has witnessed growth in leaps and bounds. According to statistics shared by Newzoo consultancy, the current global gaming market which stands at $108 billion is forecasted to reach $138 billion by 2020.
However, irrespective of the size and growth, businesses have to deal with obstacles, and the gaming industry isn’t any exception. Blockchain – a peer-to-peer technology has the potential to transform the gaming industry in multitude of ways. Here’s how:
- Providing Players with a More Personalized Gaming Experience: Gaming companies often store their assets on centralized servers fearing risk of asset duplication. Since, they do not have control over their purchased virtual assets, they are restricted from buying, selling or trading these assets beyond the gaming ecosystem. Blockchain brings the ownership and control of these assets in the hands of gamers or players by creating a transparent and decentralized ecosystem wherein players will be able to exchange their virtual assets with other players that too instantly. Apart from this, gamers will be able to exchange assets with players of other game, which will offer a more personalized gaming experience to the players.
- Enhanced Security of Gaming Assets: Introducing Blockchain technology to the gaming industry will not just prevent illegal trading of virtual assets but will also check issues related to hacking and stealing. This becomes possible because the encrypted blockchain ledgers are impenetrable. The immutable nature of Blockchain makes duplication of assets impossible thereby proving ownership of assets and ensuring safety of gaming assets.
- Prevents Fraudulence: Though, the gaming industry has been thriving, it has been prone to fraudulence with one out of every 7 virtual items surrendering to fraud. This has led to loss of millions of dollars in terms of revenue. Incorporating Blockchain within the gaming industry will ensure eradication of such menaces thus saving the gaming industry with billions of dollars.
- Faster Processing of Payments: Introducing Blockchain within the gaming ecosystem will ensure faster and secure processing of payments for gamers who can now purchase items and make payments without any hassles or risk. Apart from this, Blockchain will ease the job for developers who otherwise have to struggle selling their apps beyond the app store and have to pay high commission fees to intermediaries. Blockchain allows the processing of even the smallest of amount so that developers get instantly paid and can re-invest their money in marketing their game launch.
- Democratizing Voting Mechanism: Voting features are extremely popular within the gaming community as it helps in ranking of games, players and other items. Blockchain can eliminate the menace pertaining to corruption and manipulation of votes, which results in feedback (from the voting system) that is unreliable. The immutability element and smart contract functionality of Blockchain makes manipulation of votes extremely difficult.
It wouldn’t be a tall claim to make that Blockchain is poised to be the future of a flourishing and secure gaming industry. While the aforementioned benefits are just the tip of the iceberg when it comes to several benefits that this innovative technology is expected to offer, the technology will certainly bring forth new set of gaming innovation, which in turn will pave way for a new gaming landscape.