Blockchain-developed games are a relatively new gaming sector made a reality in November 2017 with the launch of the first widely-spread application ever – the CryptoKitties. To this day, this ecosystem is growing by leaps and bounds and is expected to increase at a CAGR of 66.5% until 2032, hitting $818.5 billion by that year. Blockchain games’ rise to fame is partly attributed to the increased adoption of cryptocurrencies and their promising future, which helped the ecosystem gain investors’ and players’ trust.
The Ethereum price grew to unexpected heights along its journey to become the second-best established cryptocurrency worldwide, making many game players see potential in this area and give blockchain-based games a shot.
There are undeniable advantages to blockchain that are being infused into the gaming sector, which you will discover, too. Yet, there’s not only sunshine and rainbows in the ecosystem. Several kinks must be worked out to fully realize the potential of blockchain technology and create a safer gaming environment in which more players can participate, so let’s look at them.
Blockchain’s involvement in the gaming industry hosts several advantages
The COVID-19 pandemic has driven much growth in the gaming industry, encouraging more individuals to try innovative game options like blockchain-related ones. Ever since, this ecosystem has been expanding significantly, gathering players who were allured by the associated advantages, such as the following:
Increased player control. Players completely control their gaming experience, as blockchain-based games enable them to capitalize on their assets, contribute content to improve the experience and monetize different in-game features.
More security. Blockchain’s centralized nature is known for boosting participants’ security and cyberattack protection, providing a better-safeguarded environment for players to experiment. The security measures allow participants to handle and store their gaming profits better.
Interoperability. Participants can conduct different transactions on multiple blockchains using the same public address, which they can move from one network to another.
Digital identity. The underlying blockchain technology allows players to use secure digital identities, which, through a thorough verification process, takes fraud out of the equation.
Despite blockchain’s advantages, some quirks still need to be worked out
It goes without saying that any advancements and innovations in the gaming realm come with challenges, as it’s hard for two industries to cooperate flawlessly and make it all feel like a breeze. Applications using blockchain technology unlock a lot of potential and open the door to numerous opportunities, but risks and difficulties also have additional room to sneak in. Some of the potential disadvantages that blockchain devotees should pay careful attention to may include the following ones:
Scalability. There’s fierce competition between traditional centralized games and blockchain games with regard to their convenience and speed. In light of this, blockchain’s scalability has considerable limitations, as these games are already known for being slower compared to the former category, scaring many potential players away from them. Transaction costs, long response times, and increasing block sizes are major concerns in blockchain activity, especially since these networks’ spreading adoption makes the high transaction volumes grow even more difficult to handle. Scalability ranks among the biggest limitations to blockchain games, yet, some networks have found solutions to the problems. For instance, the Mobox: NFT Farmer game developed on the Binance Smart Chain (BNB) combines two mechanisms called the Delegated Proof of Stake and Proof of Authority to boost the scalability of the network, further increasing the speed at which transactions are conducted and decreasing the transaction fees. Alien Worlds, another popular game for its scalability-related resolution, relies on a redesigned consensus mechanism to process transactions faster and improve energy efficiency.
Entry barriers. Needless to say, games that require players to spend a different amount of money to be allowed access to play them are not everyone’s cup of tea, especially when there are millions of free applications providing similar experiences. Many play-to-earn and other blockchain-related games ask potential participants to buy an NFT or spend a certain amount of money to be able to play them, with some popular ventures impeding users from advancing unless they take money out of their pocket. While it’s true that participants may gain cryptocurrencies as they go, the fact that they need initial investments (both in time and money) can make blockchain-based games lose some of their appeal.
Technical obstacles. Regardless of the knowledge baggage, one may carry about blockchain, given all its complexity, it’s not the easiest technology to grasp. Adopting and using it necessitates a high level of technical expertise, which may pose challenges even to tech-savvy individuals. Gamers may be put off by the technical complexity of several operations, like the crypto wallet setup or acquiring non-fungible tokens or cryptocurrencies to join a game. Also, creating blockchain games may take additional effort, money, and time, which increases the difficulty for smaller devs to break into the market.
Fewer blockchain game options: While the number of games using blockchain technology is on the rise, and more and more enthusiasts are joining the bandwagon, no one can deny that in terms of variety and diversity, this category lags compared to traditional, centralized networks. This means that for blockchain games to challenge the latter category’s leading position, more well-designed products built with the user in mind must emerge on the market. An essential element that will secure a bright future for blockchain-based games is to make them more appealing to advanced players who may lack the motivation to enter this world.
Cryptocurrency security. Blockchain’s well-developed security measures, like effective key management and cybersecurity frameworks, have long been recognized as core strengths of the technology; the same cannot be said about cryptocurrencies. Despite blockchain’s secure and decentralized nature, centralized service providers aren’t hack-proof or safe from any possible malevolent activity, which may expose users’ assets and grow their vulnerabilities in the face of security threats.
Last words
As the blockchain-based gaming industry keeps making quantum leaps and adoption spreads worldwide, more ecosystem projects and refinements are expected to see the light of day, likely sooner rather than later. Stay up-to-date with the latest developments in the ecosystem if you’re passionate about it, and remember that caution is your best ally if you want to make significant investments.