Blockchain has the power to reshape gaming. See how.

Private data leaks, fraudulent transactions, absurd prices and fraudulent systems are problems that we could solve with Blockchain technology.

The days when blockchain was just synonymous with cryptocurrencies are over. While the technology is obviously at the core of cryptocurrencies, it has branched out into other sectors and found many new uses. You can probably guess or imagine some of them. But gaming is unlikely to come to mind when thinking about blockchain.

What use could blockchain have in the gaming industry? Surprisingly, a lot. If you take a look at the industry, you'll see why. Private data leaks, fraudulent transactions, absurd prices and fraudulent systems that generate more money than real games. All of this keeps players on their toes when it comes to playing the game.

But gaming should be fun and players shouldn't worry about all that. This is why blockchain can be such a good thing – especially for gamers. This is because its features can bring true ownership, decentralized gaming, fair gameplay, and even a play-to-earn mode . Unfortunately, we're not there yet. See how blockchain can get us there.

Protecting player data

Gaming companies are using the Internet to provide different features for different games, from online gameplay to updates, purchasable items, competitions, and more. However, to access these features, players must create their personal profiles and provide personal information, including sensitive data such as credit card information and social security numbers.

Because all of this information is stored on central servers, hackers and bad actors can get their hands on this information – as they have in the past. The continuous leaks and breaches have sown a lot of distrust in players who now realize that companies are not doing enough to protect their information. In this context, blockchain is a great alternative.

This is mainly due to its characteristics. First, the chain is highly encrypted, which makes it very difficult for an external actor to access or tamper with the data contained therein. Then there is the decentralized nature of blockchain, which makes it very difficult for anyone to find specific data across a multitude of transactions and shared databases. And there is transparency for all players involved who, as part of the game's blockchain, can see that no one is committing fraud.

Securing asset ownership

Another big problem in the current gaming landscape is that whenever you buy something in any game, you don't actually own it. It's more like you're renting, since all of these items are actually on the developer's servers. If one day, for any reason, the developer updates their game, breaks something or deletes information by mistake, all the material will disappear.

Fortunately, blockchain uses smart contracts, a great resource for game development and securing asset ownership. Like this? Governing game transactions through automated rules contained in a smart contract. Contracts are automatically executed when the player meets certain predefined conditions, and once this is done, any changes resulting from their execution cannot be reversed.

So whenever you want to buy, say, a sword in a blockchain-based MMORPG, the contract that governs it might indicate that you could do so if you had a certain amount of currency and a specific hero level. If you meet both and agree to the terms of the contract, the sword will be yours for all eternity (or, to be more precise, as long as you have your public address, where these goods would be stored).

Making in-game purchases easier

While we're on the subject, blockchain would not only ensure you own what you buy – but it would make it easier for you to buy it. Today, in-game purchases are all the rage as they are the perfect way for game developers to monetize their work while also offering some, shall we say, “unique perks” to players in the form of special items.

The practice has been criticized for many things, but the one thing blockchain could help with is taking the middleman out of the equation. In other words, today's in-game purchases require an intermediary (often a bank or financial institution) to validate the transaction before it is carried out. With blockchain, all of this would disappear and purchases could be made instantly.

What's more – since blockchain is the foundation of cryptocurrencies, all these transactions can be done in any cryptocurrency of your choice. This could lead to the development of a play-to-earn model, where players mine cryptocurrencies by playing a certain game and then exchange these same currencies in the game's market. All of this would be beneficial for everyone involved and make for a simple process.

Creating Unique Profiles

If you want to play an EA game, another from Blizzard and then one from Microsoft, you need to have different profiles and accounts on your digital platforms. It's a bit annoying, as you have to leave one platform to enter the next one. Yes, you might argue that it's a minor inconvenience, but imagine this: a unique profile that you can use to play any game you want. This is what blockchain can bring to gaming.

Since you would use your public address as your profile, you could easily jump from one game to another without any major problems. The best part about this is that you will be able to transact and use the cryptocurrencies mined through the play-to-earn model on any of these titles, all at the same address.

Moving away from today's centralized platforms, games would gain more flexibility and interoperability. It would mean a huge win for gamers, as they wouldn't be limited by different platforms or subject to their unique whims.

Future challenges

While all of the above sounds great for gamers everywhere, we are still far from widespread adoption of blockchain in the industry. There are many reasons for this, including corporate and political motivations that benefit from the current status quo. Most importantly, there are technical challenges that prevent blockchain from becoming an ideal solution for game developers.

Take speed, for example. Modern gamers expect sophisticated games with zero lag and mind-blowing dynamics. With blockchain technology, gaming would be restricted by activities such as trading and asset creation, which take considerable time even on the fastest blockchain platforms on the market.

Then there is the matter of maintaining the blockchain gaming system itself. If you've ever made transactions on a blockchain, you know how expensive these transactions can get, costing several dollars each time you make one. A game with some level of sophistication would mean thousands or even millions of transactions in a given day, which could inflate the cost to unaffordable levels.

These are just two of the challenges that await the implementation of blockchain development in games. Despite all the promise of this cutting-edge technology, there is one problem that needs to be resolved before the entire implementation can be successful. However, this doesn't mean we should rule out blockchain games. Instead, we must take on these challenges and start looking for solutions that can lead to a fairer and more enjoyable gaming experience.

If you liked this article, be sure to check out our other articles on Blockchain technology:

• The State of Cryptocurrencies in 2023
• Blockchain has the power to reshape gaming. See how.
• 5 Ways Blockchain Could Disrupt Data Science
• Blockchain and Education
• How to Create Cryptocurrency – 7 Easy Steps