The videogame industry is a multi-billion dollar rapidly growing industry and is increasing its audience at a staggering pace. Blockchain gaming which was invisible a few years back is now taking a root and is here to stay. Blockchain gaming is still in its nascent state and mainstream adoption is still quite far in the future. Many corporates and venture capitalists have backed up Blockchain gaming. But, the active audience base is still quite low at only 3 million.
So, what is even Blockchain gaming? Is it a game where you make chains of blocks? Certainly not. Then, let us understand what it is, what the future holds for this sci-fi sounding thing and what problems it is facing right now.
What is Blockchain gaming?
Blockchain gaming utilizes true item ownership enabled by Blockchain technology. Players get digital ownership of their in-game items. So, it verifies them as rare that can be sold or brought by anyone. Simply put, it is a decentralized form of gaming.
Let’s consider an example. Have you ever heard about Axie Infinity? It is an online NFT-based game that uses Ethereum based cryptocurrency. People can collect, breed, raise, battle, and trade creatures which are then digitized as NFTs. Participants can earn tokens that they can trade on Binance as an Ethereum-based cryptocurrency.
The rise of Blockchain gaming is partly because of the rise of NFTs and NFT gaming. It becomes quite obvious with the success of games like Axie Infinity which has a player base of millions or EtherRockets where you can trade rockets or Cryptopets.
Crypto and Gaming
A few years ago, Bitcoin or cryptocurrency in general, was never taken seriously, to put it mildly. And the fusion of gaming with anything remotely related to crypto or Blockchain was unheard of. In 2011, a StarCraft 2 tournament offered 25 BTC to the losers, possibly as an insult.
So, when in 2017, a video game developed by Canadian studio Dapper labs, CryptoKitties introduced the concept of trading virtual cat NFTs for cryptocurrency. It was a game-changer. One NFT was allegedly sold for over 100,000 USD.
Also read: CryptoGames Review: Facts and Features
Since then many games like HashCraft, Botwars, EtherRockets, Axie Infinity, etc., have become quite popular. Blockchain, cryptocurrency and NFTs have transformed the gaming industry in various ways –
- It has greatly enhanced the security of the gaming market making it almost impossible for hackers to break into the data servers.
- The ease and transparency introduced by Blockchain technology have greatly enhanced the ownership of In-game assets.
- The success of Blockchain games has proven to the game manufacturers that players are willing to place real value on digital collectables and NFTs if they create an interesting Blockchain game.
- It has decentralized or democratised the games and has given players more control over their favourite games.
The future and the problem it will face
According to a report by Joost Van Dreunen, a professor at Stern School of Business and a gaming market research analyst, the biggest bottleneck that the Blockchain gaming industry is facing is talent shortage rather than capital or technology shortage.
According to his report titled Blockchain Gaming Beginnings: From Crypto Craze to Decentralized Fun
- Rapid expansion necessitates active hiring. Year-over-year growth in headcount among top Blockchain game developers of +102 per cent shows that talent is going to become a key bottleneck in the quest for making the next big game.
- The highest-valued Blockchain gaming companies now employ less than 500 people. As compared to Activision Blizzard’s 9,500 full-time workers, 11,000 at Electronic Arts, 6,495 at Take-Two Interactive, and 960 at Roblox.
- Developing Blockchain technology is far more difficult and necessitates specific knowledge. In the short run, corporations will be fighting for skilled developers, engineers, and producers due to an abundance of investment money. Even though their financial resources allow for acqui-hiring, top organisations struggle to recruit qualified employees.
The possibilities for Blockchain gaming is huge. It holds the key to revolutionizing the gaming industry. It has the potential to take control away from the gaming companies and hand them to the gamers.