Blockchain technology in video games has been developed for over 3 years. Currently, most games are developed on the basis of a centralized model. This means that all game-related data is stored on a server that is fully controlled by the game developers.
Blockchain in games means the introduction of decentralization, giving players full control over their items, characters and other in-game resources. You can be tempted to say that in-game blockchain gives the power to players.
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Video game market overview
In 2018, Poles spent over PLN 2 billion on video games. Compared to 2017, this result is nearly eight percent better. We will know exactly the final statistics for last year soon, but we already know that it was record-breaking.
In 2018, players spent the following amounts broken down into individual computer game sectors (amounts in USD):
- Mobile games for smartphones – 157.8 million
- Boxed/downloaded PC – 152.6 million
- console – 151.7 million
- mobile for tablets – 58.4 million
- Browser PC – 21.1 million
- In global terms, the video game industry grew 9% in 2019.
The biggest increases were seen in games developed for mobile devices, with console games ranking second in terms of growth and PC games third. Interestingly, the profitability of browser games is decreasing year on year.
Looking at global statistics from the video game industry, as much as 48% of the money spent on games comes from the pockets of Chinese and American players.
Europe ranks 3rd with 23%. Poland is in the leading position among European countries in this respect. Looking at the data for 2018 and taking into account countries from Central and Eastern Europe, we are in second place just behind Russia. All over Europe we are in eighth position.
Benefits of implementing Blockchain in games ?
Blockchain and cryptocurrencies bring many benefits to the world of video games. Basically, we can divide them into benefits for players and benefits for game developers.
Benefits for players
Each resource in the game (items, characters, skins, etc.) eventually becomes the property of the players
The basic element of Blockchain is the principle of “sovereign ownership” for its users. Below we will explain to you what it is all about. Once the game elements are placed on the blockchain, the player can use them directly. Additionally, the integration of games with crypt wallets allows players to store and send items (game items) to these wallets. When game developers decide to disable the League of Legends servers, players lose everything (skins, characters etc.). It is not possible to recover them. Blockchain in games makes it possible for players to access their items after the servers have been shut down, thanks to their wallets.
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Honest and equal for all gameplay is another element that improves Blockchain
Hacks, bots, various kinds of illegal scripts or bugs are the bane of every player. Thanks to its technological nature, Blockchain provides fair gameplay. When games are placed on Blockchain, game logic and gameplay elements are also common. The consensus mechanism used to secure the network works simultaneously to secure the game. This means two things for players. First: Hackers, scammers, or anyone who wants to violate what is possible for players is by nature unable to do so. If their movements are contrary to the given game logic, their activity is rejected. Secondly, the games are transparent (just like the whole Blockchain). If the game has a chest, where each player has a 10% chance to get a rare item, players can be sure that the possibility of getting a rare item is actually 10%.
End of Pay-To-Win, coming Pay-To-Earn
Playing a game where your success depends on the thickness of your wallet is not pleasant. Blockchain turns Pay-To-Win into Pay-To-Earn. The tokenization of resources in games (i.e. giving real value to items) is made possible by cryptic players such as Bitcoin. Players can sell their items by earning cryptovalutes that have real value in the normal world. The earnings of the best Blockchain game players reach thousands of dollars.
The global connection of the entire gaming ecosystem
Blockchain allows you to move items from one game to another. Imagine a situation where your favorite epic sword from Gothic I can be moved to its second part Gothic II. You don’t start the game from scratch. Additionally, thanks to the cryptovalutters, you can swap items in games. In addition, popular game events can take place simultaneously in several different worlds.
Benefits for game developers
Implementation of modern technology
Blockchain is a young technology, rapidly developing, and its possibilities are still being explored. Players like novelties, they are usually explorers, so providing them with new experiences can be very profitable. Currently there is a technology race among the game developers. Unique mechanics are being created, giving new opportunities for gameplay. Early implementation of Blockchain technology into your portfolio may turn out to be a “golden egg laying hen”. We all know how important it is to be one step ahead of the competition.
Cost reduction
By building blockchain games, all costs related to infrastructure maintenance, moderation, publication can potentially be subcontracted to miners or network maintenance entities. Publishing and distributing online games can be a zero-cost venture.
Creating new types of games
New game genres based on Blockchain technology already exist. Examples are Pay-To-Earn games. The potential of Blockchain is enormous and it’s only a matter of time before new and previously unknown game genres are created.
Building a new profit-making model
Currently, game developers make money by selling games and when a player buys a specific package or item in the game. Earnings are one-off. Blockchain gives developers the opportunity to receive continuous revenue. It is the developers who can determine the amount of fees for in-game transactions. For example, they can set a fee for sending an item to the player’s wallet or a margin for selling it on the market.
