The Rise Of Games Based On Blockchain Technology

Blockchain technology has been in the news for a while now, disrupting several industries. What most people don’t know is that it goes beyond just cryptocurrencies. Blockchain is disrupting the lucrative world of gaming. This is certainly ‘game-changing.’ Explore how blockchain technology is the future of online gaming.  

Blockchain-based games are ones that use blockchain technology as part of their game play or infrastructure. These games are unique because they are decentralized, this means that they are not controlled by any single entity, for instance a game developer or publisher. On the contrary, they are run on a network of computers, each of which has a copy of the game's data and code. This network is called a blockchain.

Benefits Of Blockchain-Based Gaming

Online gamers enjoy several benefits playing blockchain-based games. In the first place, it allows for the creation of decentralized virtual economies, where players can trade virtual goods and services with one another without the need for a gatekeeper or central authority. The reason for this is that the blockchain records all transactions on a public ledger that is visible to all members on the network. This transparency ensures that all trades are fair and secure, which fosters trust among gamers.

Apart from transparency, blockchain-based games are more secure than traditional games because the blockchain is a tamper-proof technology. Accordingly, once a transaction is recorded on the blockchain, it cannot be modified or erased. This eliminates the possibility of cheating or fraud in the game. This is one of the main reasons why companies choose custom blockchain development for their online games. 

What’s more, blockchain-based games allow for true ownership of in-game digital assets. In traditional games, gamers may spend money on in-game items, for instance weapons or clothing, but they do not actually own these assets. In case the game is shut down, their assets no longer exist. In blockchain-based games, however, virtual assets are stored on the blockchain, meaning that players truly own them. They can be transferred between games or even sold for real money.

How Do Blockchain-Based Games Function?

Having learned about the benefits of and uniqueness of blockchain-based games, let's take a look at how they work. These games use smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. These smart contracts automate the process of transactions and enable players to trade with one another securely and transparently.

Let's say that a gamer wants to buy a virtual gun from another player. The two parties would agree on a price and then generate a smart contract that outlines the terms of the transaction. This contract would be stored on the blockchain, and once the agreed-upon conditions are met (such as the transfer of funds), the contract would execute automatically, transferring the virtual gun to the buyer and the funds to the seller.                                     

Through custom blockchain development, games also involve non-fungible tokens (NFTs) to represent virtual assets. NFTs are unique digital assets that are stored on the blockchain. Each NFT has a unique identifier that cannot be replicated or duplicated, making them valuable and rare. These NFTs can be used to represent virtual items such as weapons, clothing, or even entire game characters. Players can trade these NFTs with one another, creating a virtual economy.

Blockchain-based games are a new and exciting development in the world of gaming. They offer several benefits over traditional games. By using smart contracts and NFTs, blockchain-based games provide an engaging and innovative gaming experience. As this remarkable technology continues to evolve, we can expect to see even more games utilizing this technology in the future.