Most technologies have practical limitations that keep them glued to a highly narrow industry or niche. But blockchain isn’t one of them because it successfully penetrates different sorts of businesses, gaming included. It actually involves all aspects of the gaming spectrum to cover traditional games as well as online casinos.
For instance, it is now easy to find games and gambling websites that accept both blockchain-based cryptocurrencies and real money. This lets you choose what you want to do. You can play Aviator game for real money and use its above-average RTP of 97%. What’s best, you can spin the reels for as little as $0.1. On the other hand, you can also find websites where slots are based on crypto coins. The point is that none of it would be possible without innovative technologies such as blockchain.
But is this good or bad for the gaming industry as such? We’ll present both sides of the story in the following sections.
Pros of blockchain-based gaming
A small footnote before we begin: blockchain has too many benefits to cover in a single blog post, so we stick to the basic stuff here. Firstly, let’s praise immutable records that make all in-game transactions very secure and transparently recorded. For those who don’t know, immutability means that no one can delete or modify a transaction once it’s added to the blockchain ledger. As such, it makes games much safer.
What’s more, there’s the element of decentralization. Some see it as the biggest benefit as there can be no central authority or intermediary in gaming. On the contrary, power and control are distributed among participants. Perhaps you rarely ever think about this feature, but it’s actually important to prevent (or at least minimize) the risk of censorship or surveillance.
In addition, smart contracts make games more efficient through the automated execution of certain tasks. These contracts are based on predefined conditions within the game, so they can instantly enforce the terms once triggered:
– Transfer ownership of in-game assets
– Distribute rewards based on specific achievements
– Conduct payments
And it’s not just about streamlining the process – smart contracts also lead to the more trustworthy execution of contractual agreements. We also have a list of honorable mentions:
· Tokenization: Tokens aren’t just a trick that makes your games more appealing, but rather a true benefit for users because they give you actual control over your assets. Unlike before, you can truly possess digital assets and do what you want with them. That’s because you are free to trade tokens across different games or platforms like Xbox.
· Micro-transactions: If you ever paid something while gaming, you probably had an awkward experience due to slow response times and high transaction fees. Blockchain, however, facilitates micro-transactions with little to no fees at all.
· Community engagement: The last benefit has to do with community-building. Players become a part of the decision-making process as there is no centralized authority. You can throw in your ideas for game tweaks or cast your vote on big game-related matters.
Cons of blockchain-based gaming
For one, we must focus on scalability issues. Many existing blockchain networks struggle to handle the volume of transactions required for a seamless gaming experience. Slow confirmation times are the main obstacle, but there are also high transaction fees during peak usage periods. Bot elements hinder the fluidity of the game dynamics.
In addition, most players consider blockchain technology to be too complex. This mainly has to do with tasks like creating wallets or managing private keys. Though this may not be the real issue, it still poses a significant challenge for user adoption as long as players believe it’s difficult.
If you happen to be an eco-friendly person like our entire team here, you must be worried about excess energy consumption. From our perspective, this is a major reason to avoid blockchain-powered games. Other notable cons are as follows:
· Regulatory uncertainty: Governments worldwide grapple with how to regulate new technologies into existing legal frameworks. The lack of clear guidelines still stifles innovation, so we’re not sure where this whole thing is going.
· Wallet security concerns: The pseudonymous nature of the system can make users susceptible to hacking and fraud.
· Market volatility: You probably had some thoughts on this problem before because the volatility of cryptocurrencies makes the games even more unpredictable. The fluctuating value of crypto coins can make your efforts useless or even encourage some users to engage in speculative trading.
The Bottom Line
With that being said, we’re sure most of you already picked the side – some people just don’t trust new technologies that much, while others probably put too much faith into it. Whatever the case, we believe this tech solution will be extremely useful in gaming once fully regulated and understood. Until then, it’s natural to expect certain deployment issues, but nothing that could jeopardize the overall influence of blockchain in the gaming industry.
