Gaming may be seen as an art form. It is also conceivable to argue that blockchain technology can reimagine both ancient and new worlds. So, what happens when a new tool is brought into a traditional art form? Innovation and reinvention.
The use of blockchain technology raises the value, liquidity, and collectibility of in-game virtual items, ushering in a new era of digital collectibles. Smart contracts may be utilized to enable in-game virtual asset trade on the blockchain, allowing for frictionless peer-to-peer transactions in a trusted environment with complete transaction history available to everyone on the blockchain.
We’ll now look at how NFTs (ERC721) may aid in the gaming industry.
What is NFT, and how are they different from ERC20 tokens?
Non-fungible tokens (NFTs) are digital assets (or items) created using blockchain technology unique to its owner. When these items are purchased or won, they become the owner’s property (rather than the game’s or another third party’s) and are recorded on the blockchain. Because ERC20 tokens are not unique and cannot be represented as an asset, NFTs have gained the most traction in the gaming and collectables markets, most notably with CryptoKitties.
The success story of NFTS
In December 2017, the blockchain-based video game CryptoKitties became so popular that it clogged the Ethereum network, causing it to reach an all-time high in transactions. In some instances, a CryptoKitty non-fungible token, or NFT, is reported to have sold for more than $100,000. In March 2018, CryptoKitties was split out as a separate firm and received over $12 million in venture investment.
“CryptoKitties has shown that giving customers a personal stake in the development of an NFT makes them more attached to it and more likely to value it highly.”
Not only are NFT (ERC721) tokens beneficial in the gaming sector, but all other blockchain features may be used to better it. Consider how blockchain technology is used in esports.
Some of the most well-known names in the gaming industry have also gotten on the blockchain bandwagon and began building apps.
Highlights of Esports Blockchain program
The eSports industry is expected to generate more than $1.5 billion in revenue by 2020, with popular games such as ‘Fortnite’ earning $1.5 million per day on iOS alone and ‘Red Dead Redemption 2’ grossing $725 million in its first weekend.
Loyalty/Incentive Schemes
Under this technique, rewards are offered based on participation or viewing. Participants must first sign up for the exemplary service, run a browser plug-in or watch an esport through a specific website to earn loyalty tokens.
A blockchain points system is distinct from a traditional rewards program. The tokens are part of a cryptocurrency. And they have the potential for the value that may be used with anybody who accepts such tokens. They may even be sold and traded for other cryptocurrencies or converted back into traditional currency.
The convergence of blockchain technology and gaming offers enormous potential for growth in both sectors. Blockchain gaming innovations have pushed the boundaries of non-fungible assets and are poised to deliver innovative advances in other areas such as scalability in the future. So far, we’ve discussed the gaming business, blockchain technology, and how the two might collaborate to enhance the economy. We all know how powerful and popular the gaming industry is, and blockchain technology has comparable figures in terms of popularity and future capacity. This league has already attracted developers that are interested in both crypto and gaming.
However, the growth of the blockchain gaming trend is not without its problems. Many games are being produced due to scalability issues. Which must be addressed before the industry can reach its full potential.
Blockchain technology, cryptocurrencies, and gaming all have enormous promise. Given the rapid rise of eSports and the possibility for developers to correctly monetize and participate in the gaming community, the intersection will create a new gaming ecosystem. I am personally super excited for this new era, are you too?
Also Read: Solidity – A Blockchain Programming Language
