Blockchain in the Gaming Industry Means True Ownership
By Noah Washington August 10, 2023
- Blockchain technology is transforming the gaming industry by enabling true ownership of digital assets through NFTs and decentralized marketplaces
- The play-to-earn model allows players to monetize their in-game achievements and earn real-world value, empowering them possibly earn a living through gaming
- Interoperability between games and platforms is facilitated by blockchain, creating a more dynamic and interconnected gaming experience
- The Otherside Metaverse exemplifies the potential of blockchain gaming, offering an immersive virtual world with NFT integration and unique gameplay features
The gaming industry has undergone a significant transformation in recent years, driven by technological advancements in VR and innovations in technology. One technology that has emerged as a game-changer in gaming is blockchain technology. Blockchain, a blanket term for a decentralized and transparent ledger system, has gained immense popularity due to its potential to revolutionize the gaming experience.
Total Ownership of Digital Assets
One of the advantages of blockchain technology in gaming is the ability to establish true ownership of in-game assets. Players have always had limited control over virtual items, often at the mercy of game developers who retain centralized control.
But by implementing blockchain-based solutions, game studios across the world can enable players to own their digital assets by utilizing NFTs. NFTs can represent ownership of a specific item or asset, such as a rare weapon, skin or even virtual land. This opens up a world of possibilities for gamers, as they can freely trade, sell or even lend virtual assets on marketplaces, knowing that ownership has been securely recorded on the blockchain.
Several blockchain-based gaming platforms and marketplaces have already emerged, allowing players to buy, sell and trade digital assets. Marketplaces such as OpenSea and BLUR have gained significant traction, providing a decentralized marketplace for NFTs and aiding users with an easy-to-use platform.
Through blockchain-enabled games, players can earn crypto or other valuable digital assets that can be traded for fiat currency. This model has the potential to transform the gaming industry by providing financial opportunities for players, especially those from economically disadvantaged regions.
Play-to-earn games can also offer an alternative to employment in some countries, empowering players to earn a living through their gaming skills. Popular play-to-earn games like Axie Infinity have already made a significant impact, with players in countries like the Philippines earning income by playing the game.
Partnerships and Cross-Platform Gaming
Blockchain technology also facilitates partnerships and collaborations between different games and platforms, paving the way for enhanced player experiences. Cross-platform gaming has gained popularity in recent years, allowing players to enjoy their favorite games across different devices and operating systems.
The blockchain can enhance this concept by enabling secure and transparent cross-platform asset transfers. A player could earn a rare weapon in one game and then transfer it to another game on a different platform without any intermediaries. This opens up new possibilities for collaboration and cross-game experiences, fostering a more vibrant and interconnected gaming community.
The top 5 gaming cryptocurrencies by market cap. Source: Chainplay
Several blockchain-based projects are already focused on achieving cross-platform compatibility. Including Enjin, which provides a development platform for integrating blockchain technology into games, and Decentraland, a virtual world built on the Ethereum blockchain boasting a market capitalization of over a billion dollars that allows users to create, own and trade virtual assets across various experiences. These projects demonstrate the potential for the blockchain to transform cross-platform gaming and create exciting new opportunities for players.
Challenges on the Horizon
While blockchain technology holds immense promise for the gaming industry, it also faces challenges that need to be addressed for widespread adoption. Scalability is a significant concern, as blockchain networks can experience performance issues when handling a large number of transactions, an example of this was seen when The Otherside had their mint on the Ethereum blockchain, and gas fees reached highs of $1,000.
User experience is another aspect that many see as needing improvement. Blockchain-based games often require users to manage private keys and interact with many different wallets or blockchains, which can be complex for non-technical players.
The Otherside Metaverse: A New Frontier
One notable project that showcases the potential of blockchain is the Otherside Metaverse. Developed by Yuga Labs, the team behind The Bored Ape Yacht Club, The Otherside is an Ethereum-based metaverse that seamlessly integrates NFTs into a vast virtual world. The metaverse offers players a unique and immersive gaming experience with endless possibilities.
A Bored Ape inside the Otherside. Source: TechCrunch
Within the Otherside metaverse, players can acquire virtual lands, each represented as NFTs.
These lands serve as a canvas for creativity, allowing players to build unique structures, establish businesses, and interact with others in a truly decentralized environment.
The integration of NFT avatars adds a personal touch, enabling players to customize virtual identities with items from popular NFT collections. Currently, The Otherside metaverse can be seen online where users and developers alike are showcasing its immersive gameplay.
Gamers Should Be Excited
Blockchain has the potential to revolutionize the gaming industry by enabling true ownership of digital assets, fostering play-to-earn models, and facilitating comradery between game developers.
The rise of NFTs and blockchain-based marketplaces has created new opportunities for gamers and developers, while the play-to-earn model has empowered players to monetize skills and achievements. As blockchain technology continues to evolve and overcome challenges related to scalability and user experience, the potential in gaming will become increasingly evident.
The fusion of blockchain and gaming holds immense promise for the future, offering players unprecedented control and financial opportunities. The Otherside Metaverse and similar projects pave the way for a new era of gaming, where players truly own their experiences and shape the virtual worlds they inhabit. As the gaming industry embraces the power of blockchain, it opens up a whole new realm of endless possibilities.