Decentralized Gaming: The Impact of Blockchain and Cryptocurrency

Even though it feels like games are now ultra-realistic, I still think that there is a lot of room for advancement in the world of video games. How?

Well, I’ll give you one example. What if I tell you that the video gaming industry will change drastically? First of all, we will become true owners of the digital items we own in video games. I am talking about skins, currencies like gold or silver, weapons, rare items, and more. 

Nowadays, you create your character and spend countless hours improving it, and in the end, the character is stuck in the game or in the developer's database with no real-world value. The only destiny for your character is to be played in that game, forever.

But what if the character can move between games? Imagine your Human Warlock from World of Warcraft, traveling to Destiny 2. I know it sounds ridiculous at the moment, but trust me, that’s what the future will bring to the gaming industry.

Now, I don’t know about you, but owning digital items in games, which can later be sent to your wallet, traded with another person, or sold creates an entirely different experience, right?

So, how will all of this become possible? And we are not talking about 10 years in the future. It is already happening at the moment.

All of this will be possible thanks to decentralized gaming or the introducing of blockchain technology in video games. Finally, the power from game developers and big video game corporations will move to the right place – the players.

What the Heck is Decentralized Gaming?

We suggested some things that may sound like they are coming from a science fiction movie, but this is quite possible thanks to blockchain technology. This technology has the power to make video games decentralized.

But what does this actually mean?

Well, the simplest explanation is that this is a technology that will allow video gaming creators to distribute control over games, rather than being centralized. Nowadays, we play games, but all the files of the game are stuck in the developer’s database. They are in control of everything.

But with decentralized gaming, you’ll be able to own pieces of the game including skins, weapons, unique items, character progression, and more. You can also store those files on a different digital wallet or sell them on a third-party marketplace.

On top of that, decisions about the game, its updates, policy changes, and economic management are made collectively by the players. Finally, players wouldn’t be able to whine about developers not hearing their demands, since all decisions will be passed with a voting process.

In other words, players will have more power, and this can be good and bad for the gaming industry.

We’ve already seen casino games and sports betting being infused with blockchain technology. Some people don’t know how to gamble with cryptocurrency, but this is actually simpler than traditional gambling.

How Does Blockchain Technology Work in Gaming?

Blockchain is essentially a public ledger that records every transaction or change, and it’s almost impossible to alter once recorded. This makes it perfect for gaming. Here’s why:

1. Transparency and Fairness: Every transaction (like buying a sword or trading a magic potion) is recorded on the blockchain. This ensures that everything is transparent, and there’s no funny business going on.
2. Ownership: In decentralized games, players can truly own their in-game assets. Remember that cool skin or rare item you found? You actually own it. You can sell, trade, or even transfer it outside the game.
3. Play-to-Earn Models: You can literally earn money by playing. Games like "Mobox NFT" have shown that players can earn a decent income by battling, breeding, and trading digital creatures, and it’s not just for the tech-savvy—it’s for anyone willing to dive in and start playing.

The Big Players in Decentralized Gaming

There are several notable decentralized games that are making waves:

• Axie Infinity: A massive hit where players use AXS tokens to influence game development and economic decisions. The community-driven approach has led to explosive growth, and players can earn by battling with their Axies or by staking their tokens.
• Decentraland: A virtual world governed by its users. Players use MANA tokens to vote on everything from land purchases to game development, making the game's future literally in their hands.
• CoinFantasy: A decentralized fantasy sports platform where players manage teams and earn rewards based on real-world sports outcomes. It's a unique blend of blockchain tech and fantasy sports.

Why Should Gamers Care?

The decentralized gaming market is booming, with projections estimating it could reach $10.7 billion by 2026, growing at a jaw-dropping compound annual growth rate (CAGR) of 70.3% from 2021 to 2026. That’s not just some minor shift; it’s a full-blown revolution in how games are made, played, and monetized.

But what does this mean for the average gamer?

• Earning Potential: Imagine playing a game where you could earn enough to cover your expenses or even make a living. In many developing regions, these play-to-earn games are already providing substantial income opportunities.
• Democratized Game Development: Forget about feeling frustrated with game developers who don’t listen. With decentralized games, you can be directly involved in decision-making processes. Got a brilliant idea for a new feature? Propose it and let the community decide!

Future of Decentralized Gaming

So, where’s this all headed? The future looks promising but uncertain. As blockchain technology continues to evolve, we could see:

• New Game Genres: Developers are experimenting with entirely new genres that leverage the unique features of blockchain, like verifiable scarcity of in-game items or player-driven economies.
• Environmental and Cost Concerns: The environmental impact of blockchain networks and high transaction fees are still major concerns. However, new advancements like less energy-intensive consensus mechanisms and Layer 2 solutions are offering promising fixes.
• Greater Adoption and Innovation: With more user-friendly designs and educational efforts, even casual gamers might soon be jumping on the blockchain bandwagon. After all, who doesn’t want a say in how their favorite game evolves?