By Nishant Behl
The gaming industry has witnessed exponential growth lately, pushing the boundaries of human imagination and creativity. Gaming apps are now integral to people’s lives, creating immersive experiences and interactive storytelling like never before. According to a report by Deloitte, India’s online gaming industry is projected to soar at a staggering CAGR of 40%, reaching an impressive sum of over $2.8 billion by the end of 2023.
This meteoric growth is no coincidence; it is a testament to the transformative power of blockchain technology in this sector. In the gaming industry, blockchain can be used to create decentralised experiences, track ownership of in-game items, and allow secure and transparent transactions. This technology can also enable gamers to earn real money from their gameplay through NFTs.
What is Blockchain?
Blockchain is a distributed ledger technology that enables secure and transparent transactions without intermediaries. It creates a decentralised database that stores information across a network of computers. Each ‘block’ of the chain is a set of transactions securely stored using cryptography. Once a block is added to the chain, it cannot be altered or deleted.
The global blockchain in gaming market has flourished, with a staggering USD 4.83 billion recorded in 2022. Projections indicate that this market is set to expand at an astounding compound annual growth rate (CAGR) of 68.3% from 2023 to 2030. Such remarkable growth is not without reason; the transformative potential of blockchain technology has resonated deeply with businesses and players alike, who now relish the seamless integration of cryptocurrencies and NFTs into their gaming experiences.
Take the case of JetSynthesys, which has taken the bold step of experimenting with NFTs in its games. Meanwhile, Bengaluru-based Avisa Ventures’ gaming division is actively collaborating with game developers to create blockchain-based games, enriching the experiences of their thriving gaming community.
Experts predict that the blockchain-based gaming industry will be worth a massive $435 billion by 2028! This means it’s growing fast, at a rate of around 12.1% every year from 2022 to 2028.
Blockchain technology is changing gaming by creating marketplaces that are not controlled by just one company. These places let players earn money through play-to-earn games. So, players can earn through cryptocurrency when they play games or do things in the virtual world. This differs from traditional gaming, where companies keep most of the earnings, and players have fewer opportunities to make money.
The Evolving Landscape of Blockchain in Gaming
Today, the gaming industry is going through a significant change because of blockchain technology. Blockchain is a game-changer, making gaming more thrilling for developers and players. It gives better security, lets you own your assets, allows different platforms to work together, and comes with new ways to get project funding.
● Digital Asset Ownership
Players can own, trade, and sell virtual items as unique digital assets, backed by blockchain’s immutable and decentralised nature. This provides players with actual ownership and control over their gaming assets.
Players have complete control over their gaming experience. They can even make money from their in-game assets and customise the game rules and features to make it more fun.
● Transparency and Fairness
Blockchain’s transparency ensures that game outcomes are fair and not controlled by a central authority. Smart contracts and decentralised systems can verify and execute game rules, promoting trust and eliminating cheating.
● Decentralised Gaming Platforms
Blockchain-based gaming platforms eliminate the need for a middleman, reducing fees and giving developers more control over their games. Players can directly interact with the game’s smart contracts, enhancing security and user experience.
● Play-to-Earn Model
Blockchain games often adopt a play-to-earn model, where players can earn cryptocurrencies or valuable in-game assets for their time and efforts. This economic model incentivizes engagement and dedication.
● Community Governance
Blockchain technology allows for decentralised governance models, giving players a voice in the development and evolution of the game. Decisions can be made collectively through voting mechanisms.
● Limited Edition NFTs
Non-Fungible Tokens (NFTs) on the blockchain can represent rare and limited-edition in-game items or collectibles. This scarcity adds value to these digital assets, creating a thriving marketplace for unique virtual goods.
● Crowdfunding and Financing
Blockchain-based crowdfunding and Initial Coin Offerings (ICOs) enable developers to raise funds for game development directly from the community, fostering a more decentralised and community-driven approach.
Foreseeable Impact of Blockchain
The future of blockchain gaming looks promising and is poised for significant growth in the coming years. Many businesses are starting to notice, like, and utilise blockchain technology. Even traditional game developers are expected to start using blockchain in their games soon, making it even more popular for everyone.
In the ever-competitive eSports industry, blockchain integration has seen fruitful partnerships come to fruition. NODWIN Gaming, for instance, partnered with RageFan to offer Chess NFTs during the Chess Super League (CSL) tournament held in 2021. This demonstrates the versatility and adaptability of blockchain, enriching not only traditional gaming but also competitive eSports.
Gaming app development is elevated to unparalleled creative freedom and financial gains. Players can buy, sell, and trade their assets across various games and platforms, opening up a dynamic and interconnected ecosystem that transcends the boundaries of individual titles. This newfound fluidity in ownership fosters an environment where players are not merely passive consumers but active participants in a thriving digital economy.
Integrating blockchain technology with gaming app development heralds a new era of cross-platform compatibility and interoperability. Siloed gaming experiences are becoming a thing of the past, replaced by a cohesive metaverse where players traverse seamlessly between different virtual realms. This interconnectedness nurtures a vibrant gaming community, fostering camaraderie and the cross-pollination of ideas.
While marching forward into the future, it is crucial for industry stakeholders to embrace the transformative power of blockchain. By incorporating blockchain technology into gaming app development, it becomes possible to transcend the present limitations and venture into uncharted territories of creativity and innovation.
The author is founder, Expand My Business