The video gaming industry has always kept up with the latest trends. It’s continuously on the lookout for new investment opportunities that will innovate the market and attract millions of players. For example, more than a decade ago, MOBA games like Dota and League of Legends were all the rage. Fast forward a few years, and battle royale games such as Day Z, PUBG, and Fortnite were the ones paving the future for the battle royale genre and new games to come.
The reasoning behind it is simple. The main goal is to build on the success of its predecessors, creating a title enjoyed by millions of players across the globe and, of course, making a ton of money. However, instead of relying on the success of a specific title or a genre, many video game developers believe new technologies like blockchain will shape the video gaming industry.
How Can Blockchain Change Gaming?
Blockchain is often presented as one of the most disruptive technologies in the world. The technology is already used in the real estate industry, cryptocurrency gambling sites, music, art, etc. Blockchain is a decentralized database or a system used to record information. It’s a ledger of digital transactions and it is distributed across the entire network of computer systems on the blockchain. In other words, the information is distributed to every peer on the network.
Blockchain has a wide array of applications, one of which is that it allows users to verify ownership of virtual data. Whenever the information changes, it is verified by miners and then recorded on every new block. Because of that, it is virtually impossible to change or maliciously alter the information stored on the blockchain. The best example of how blockchain is used is cryptocurrencies, and many crypto evangelists believe that the same or similar concept can be used to revolutionize the gaming industry.
One of the latest ideas or suggestions is to merge cryptocurrencies with the video gaming industry. This will allow gamers to use cryptocurrency to buy games, in-game items, skins, and much. In addition, game developers are thinking of creating virtual assets you can transfer through games, franchises, or even platforms.
For example, if you have a franchise that spans across different universes, you can potentially obtain materials from one game then transfer them to another. That way, you could use the materials from one game, combine them with the materials from another, and create a unique weapon you could even use in a third game.
Of course, this is just one of the scenarios. If you really think about it, the possibilities are endless, and players would undoubtedly love the idea. However, there’s one tiny little problem with the idea. Namely, why would you need blockchain for that when the same system already exists?
The Problem with Mass Adoption of Blockchain in Video Games
In today’s time, most video games are tied to video game platforms, such as Steam, Epic Games, Blizzard’s Battle Net. In addition, you also have exclusive titles that vary from one platform to another, which is the case with some XBOX and PS games.
To use Steam or any other platform, you need an account that stores all your in-game items, video games, cosmetics, and much more. In other words, your Steam account that stores your information already does everything that blockchain promises to do for the video gaming industry.
What blockchain could do is help unify the information across different platforms. However, the concept doesn’t seem all too realistic. After all, why would, let’s say, Microsoft share information or cooperate with PlayStation, its direct rival?
Now, you may say that the concept would be possible if all the games were published by the same studio. But again, why would you need blockchain for that? Moreover, the exact same idea already exists with the Mass Effect franchise of games where your character’s choices are relevant from one title to another.
Blockchain and Video Games Today
While we are most likely a long way from blockchain revolutionizing the video gaming industry, a number of video game developers are working on developing blockchain-based video game titles. One of the most popular ones is Axie Infinity, which was released in 2018 and became increasingly popular in 2021.
Axie Infinity is based on Pokemon GO, and it is an NFT-based game where players can collect, breed, and trade battle creatures. To begin playing, you need to buy three creatures (Axies), which are basically NFTs. Players can earn AXS gaming tokens for playing and use them or fiat currencies to buy and sell Axies.
Apart from Axie Infinity, the video game industry can also use Sandbox, which is a platform that allows players to create games and 3D worlds based on blockchain. Similar to AXS gaming tokens, players can use Enjin Coin, which is a token that players can use in a variety of different blockchain games.
The Bottom Line
Even though blockchain has numerous applications in the world of video games, the technology is unlikely to revolutionize the video gaming industry—at least not any time soon, that is. However, when it comes to the future of the entire industry, blockchain will undoubtedly play a big role.
In fact, even now, more and more developers are looking for new ways to integrate NFTs and blockchain technology in video games, so we are certainly going to see a lot more of it in the next few years.
