For the most part, gamers are a skeptical bunch. When it comes to new technology or new ideas that might impact how we play games, many of us will try it out but also hold on to our old habits. But there is one area where a lot of gamers are willing to give blockchain technology a chance: gaming-related cryptocurrencies.

This article aims to explain why blockchain is important for gamers and why they should consider using gaming-related cryptocurrency in their games or as reward for playing games. It also explains how blockchain works and why it’s crucial for game developers and publishers who want their players to engage with each other without worrying about fraud or cheating.

What is Blockchain?

Blockchain is a distributed, decentralized ledger. A blockchain is a growing collection of documents. These sets or collections are the blocks that are linked. Each of these gets safeguarded using encryption. Each block usually includes a hash pointer to the preceding block, a timestamp, and transaction data.

Blockchains are inherently resistant to data alteration by design. Once recorded, the contents in any given block cannot be changed retroactively without affecting all following blocks, and hence all subsequent transactions.

In simple words, it’s just an indelible digital ledger that can’t be tampered with or altered later on! It’s basically like a public version of your bank account or credit card statement. You can see who has paid you or withdrawn money from your account, but no one else can make any changes without access to your private key (password).

Blockchain and Gaming

The gaming industry is an interesting one to explore when it comes to blockchain. The benefits of decentralized technology are extensive, and they could have a huge impact on how we play games.

Decentralized tech means that there’s no single point of failure in a network, meaning that no one person or group holds all the power to control what happens within it. This is ideal for gaming because players don’t have to worry about hackers manipulating their accounts or stealing valuable data from them.

It can be especially important with cryptocurrencies. It is already driving the trades in the cryptocurrency markets. The deals are getting executed with cryptocurrency price stipulation and creating value in the chain.

Blockchain also allows for smart contracts. There are agreements between two parties made through code rather than the spoken word. These exist on a distributed ledger (or database) across multiple computers.

This eliminates any need for third-party verification like notaries or lawyers. They could be corrupted by outside forces seeking personal gain at your expense.

In addition, blockchain offers developers new ways to monetize their games without relying on advertising revenue alone (which can often alienate consumers with intrusive ads).

Blockchains Use Cases in the Gaming Space

Tokenization of In-Game Assets
This is a very interesting use case for blockchains and it will likely be the first one to be implemented. There are already several games that use blockchain technology in their backend but do not have an actual cryptocurrency.

The most popular gaming platform today allows players to buy and play with cryptocurrencies. The ability to tokenize in-game assets will allow developers and publishers to create more engaging economies inside their games.

It also creates new revenue streams by selling items such as weapons, equipment, clothing, or even cosmetic upgrades.

Blockchain-Powered Games
Another potential use case is blockchain-powered video games that offer faster transaction time due to their inherent nature as decentralized ledgers (no middleman). These types of games would allow gamers who own certain cryptocurrencies like Bitcoin or Ethereum. These can only get accessed through specific wallets to experience new levels of interactivity with other players.

It is without having any third party interfere with their interactions. These can include money laundering regulations imposed on traditional banking platforms or fraud prevention measures taken by credit card companies like Visa & MasterCard. They might decline payments due to suspicious activity detected by algorithms running on centralized servers owned by these two giants from California (USA).

Cryptocurrency for Gaming

Cryptocurrency is a digital currency that uses cryptography to secure transactions and control the creation of new units. The first cryptocurrency, Bitcoin, was released in 2009. In 2018 there were over 2,000 cryptocurrencies in circulation with a total market capitalization of $110 billion.

Cryptocurrency has had a major effect on gaming. It can be earned through playing games with an in-game currency or used to buy items or pay for subscriptions. This opens up new revenue streams for game developers by allowing gamers to monetize their gameplay time and reduce costs associated with payments made by credit card or PayPal.

For example, Fortnite offers players V-Bucks (the game’s virtual currency) as rewards for completing missions and challenges within the game. It can then be spent on upgrades like faster building times or more powerful weapons.

The Blockchain Game Space Is Growing

Blockchain games are in their infancy, but they’re growing rapidly. The blockchain game space is expected to grow from $3.7 billion in 2020 to $15 billion by 2022, according to a report by Juniper Research.

The main appeal of blockchain gaming is its ability to leverage smart contracts and cryptocurrencies as an incentive for players. This makes it possible for people to earn money while playing games. It has never happened before in the traditional gaming world.

It’s important to note that many of these new titles are not MMOs or strategy games. They tend toward more casual experiences like trivia apps and multiplayer puzzle games (in some cases with a crypto twist).

These titles may not be as immersive or open-ended as traditional RPG experiences. However, they can still provide players with entertaining ways of earning cryptocurrency regularly without having to buy expensive equipment first.

The Impact on the Gaming Industry

Blockchain is a technology that’s changing the way we play games. It’s an important new concept to understand, especially if you’re interested in how your favorite video games are going to change in the future.

Blockchain makes it immutable. It means no one can change anything about a transaction once it’s been recorded on the ledger. There are multiple copies of this shared database distributed across many computers around the world (called nodes), there’s no single point of failure for hackers to attack.