The Impact of Blockchain Technology on Gaming

With blockchain technology gaining recognition in many industries, including art, finance, and fashion, the world is beginning to sit up and take notice.

Even though the most prominent use of blockchain is within cryptocurrency, there are other applications as well. The gaming industry is one area where blockchain is very useful, especially for Online Casino operators.

In its simplest application, blockchain technology is a way to transparently store and share information across a business network. Blockchain databases store numerous types of data in blocks, which are then linked together in a digital chain.

Many people are wondering how blockchain technology will impact the gaming industry, or may already be influencing the sector. Below is our rundown of how blockchain is already here within gaming, and how its influence is likely to grow in the coming years.

Video games and crypto

One of the most straightforward examples of how blockchain technology is a part of gaming is to look at cryptocurrency. There are many games you can play, especially on your mobile or through a web browser, where you can earn, buy, sell, or trade in-game items with other players.

Perhaps you're playing a game that is free for you to download and start enjoying. The way the creators make money is either through ads within the game, or when players spend money on in-game items they can use for the purposes of doing better in the game.

These in-game items, which can also include cryptocurrencies or NFTs, are usually stored and traded using blockchain technology. The tech ensures that any player who is using these in-game items has safe possession of them, while also ensuring the game creators are making money each time such items are bought, sold, or traded.

A billion-dollar industry

Even though blockchain technology merging with gaming is still relatively new, the idea of buying items in a game is not new. There are countless companies, with EA Sports being the prime example, that are making billions of dollars a year thanks to players spending money on tokens, cards, packs, or specific items they can use within a game they own.

Blockchain is a way to take such in-game spending to another level. It also ensures that players can take advantage of any NFTs or cryptocurrency they may own, as they do not have to use traditional currencies to buy those in-game items.

Many of the world's top gaming companies and brands are leveraging blockchain gaming. One example is the world soccer organization, FIFA, which is set to release several blockchain-based games in the Upland Metaverse over the coming year, including FIFA World Cup Qatar 2022, which combines elements of VR and blockchain to create a game where players can buy and sell virtual items.

Blockchain and gambling

Another industry that is hugely benefiting from blockchain technology is the gambling sector. Online casinos have become a significant industry around the world over the past decade, with many countries seeing their rise in popularity outstrip traditional casinos.

The problem for many online casino sites is the security of having players add and withdraw money on their platforms. These sites want to have customers from around the world, but handling money in various currencies while obeying different laws can be a challenge.

Blockchain makes the entire process easier, as an online casino can accept any currency, including cryptocurrencies. All the transaction details, currencies, and assets are stored in the blockchain, ensuring that everything remains safe and cannot be manipulated.

Such crypto and blockchain-based casinos are still gaining traction, but they are likely to be the future of the industry. Gamblers want security and anonymity, which blockchain delivers.

The future of blockchain and gaming

There are numerous benefits to having blockchain technology play a central role in the games of the future. Anytime players are buying or selling in-game items, the transaction and asset details can be stored using blockchain. Such a method is a lot safer than hosting all the data on a centralized network, which can easily be hacked or manipulated.

Another advantage to blockchain in gaming is that players from around the world can comfortably use different currencies and payment methods; they do not have to deal with currency conversions or exchange rates, given that gaming companies will also have an easier time accepting crypto as a form of payment.