The ways in which Blockchain is transforming the iGaming industry

Authored By: Dmitry Belianin, CCO Parimatch International

Blockchain games are far from new to the iGaming industry but in recent years, they have been capturing the interest of a growing number of aficionados, with more titles being released. Growth in the overall gaming industry has been driven by the adoption of blockchain technology in gaming apps.

Driven by the blockchain, these versions allow the user to own a copy of the game, rather than just a solitary unit of it. Blockchain uses the same tech as cryptocurrencies to empower users to customize their gaming assets and dream up characters and plots (in association with the developers), which they can then transfer to other gamers and trade them on the platform. This gives users greater control over the gaming experience while exposing them to an array of in-game scenarios.

The blockchain is like a decentralized ledger, an archive of data that is accessible to the public. It documents every transaction of a digital asset, which vouches for its transparency. In the gaming universe, the blockchain has created a new experience for players, who can use NFTs and cryptocurrencies to buy in-game assets which can then be swapped for real-life currency. NFTs, which are stored on the blockchain, allow users the chance to earn money while they play and even own the characters in the games.

Meanwhile, cryptocurrencies such as Bitcoin and Ethereum facilitate quick and secure online payments for in-game purchases like avatars, power-ups, and themes. And for developers, blockchain assists in the effective monetization of their gaming services.

Here are a few ways in which blockchain works to the benefit of the gamer and the game developer:

Peer-to-peer transactions

By assimilating blockchain technology into their systems, the gaming industry is paving the way for peer-to-peer transactions to enable players to buy and sell virtual assets ‘in the game’. Even big names in the console space are integrating this tech into their platforms, including Microsoft for Xbox.

Also, a decentralized blockchain network is spread across multiple servers, making it impossible for hackers to find their way in. This makes the network fraud-proof, meaning there’s no risk of the transaction history being tampered with or wiped out. So, players’ assets are safe. Further, the distributed databanks aid game entrepreneurs in developing their creations securely.

 

Non-fungible tokens

NFTs are a ‘game’ changer in that they let gamers own their digital assets. These can either be traded or used within blockchain games to buy, for instance, characters, memes, or any other virtual asset. Further, players can have total control over their assets, and the freedom to buy and sell them as they choose, for they don’t have to deal with an intermediary (like another player).

 

Play and earn

In a traditional game, the points you earn don’t carry any value outside of it. But in the Crypto Game—another ‘game-changing’ development in the realm of gaming—users can earn digital currencies while playing. You’re being incentivized for taking part. The reward comes in the form of a cryptocurrency, which you can then redeem once you’ve left the game for the real world.

 

Virtual events & tournaments

Blockchain makes holding virtual competitions—whether local, regional, national, or global—easier because you can circumvent bottlenecks such as unreliable cybersecurity and low and sketchy bandwidth. The technology is capable of tracking and verifying winners while guaranteeing each participant security when it comes to transactions and sharing of private details and digital assets.

Best of all, blockchain games allow users to create a single profile that they can use across multiple platforms. This enriches their experience while also easing access to a variety of games and making a purchase of assets more convenient.

‘Cryptokitties’ was one of the first blockchain-powered games, in which you are tasked with creating ‘new generation’ kittens with unique personality attributes, to capitalize on their value. Users can trade their ‘kitties’ through an open marketplace or wait for them to grow in value. There is also God’s Unchained and The Last Will, while Decentraland, a virtual reality platform, demonstrates the transformational potential of the blockchain in gaming.

 

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