How Can Blockchain and Cryptocurrency Revolutionize the Gaming Industry?

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How Can Blockchain and Cryptocurrency Revolutionize the Gaming Industry?
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The Gaming Industry’s Ambitions

Nearly 30% of the human population is actively participating in video gaming. That is almost 2.5 billion people worldwide. The gaming industry has long been one of the most profitable business ventures on the planet, with a staggering total revenue of $135 billion in 2018.  Many game developer companies have been gunning for dominance throughout the last couple of decades: some have thrived; most have vanished or have been absorbed by their competitors. With the emergence of blockchain and cryptocurrencies, developer companies around the wold have started to take notice and find new ways to profit from the new technology.

Microtransactions and Crypto

For the last few decades, developers have been actively integrating online modes into almost all of their games. Online gaming worlds always create their own ecosystems. Once the community is started, trading always comes into play. Traditionally, microtransactions were made through banks, but now blockchain is starting to grow roots. The total average of microtransactions per player per year around the world is $58, according to official online store purchases. Today, cryptocurrency holds only a small piece of that pie, but experts believe that there is a lot of potential going forward.  

How Blockchain and Crypto Can Change the Industry

With the development of blockchain technology, the world has entered a new era of possibilities and video games are out there to capitalize on those opportunities. An increasing number of developers are looking into the application of blockchain tech to their games. The reasons behind this are smoother financial transactions and enhanced security. A great example is the titan of the gaming industry – Ubisoft Games. The next installments of their prime franchises – Assassin’s Creed and Far Cry – are said to be developed around blockchain tech.

With the new groundbreaking technologies, users will not have to worry about their private information being misused, or hiccups during the gameplay when using microtransactions. Instead of a centrally controlled server, blockchain-based games will become decentralized and allow for easier and faster financial transactions.

Active Implementers

PLAYERUNKNOWN’S BATTLEGROUNDS Image: microsoft.com

Despite the obvious benefits, most large developer companies are still treading lightly when it comes to integration of blockchain technology into their products. Two of the biggest and most successful games right now are Fortnite – developed by Epic Games and PUBG – Bluehole INC. With the combined active player number of almost half a billion, these two dominate the industry, making $2.4 billion and $1 billion in yearly revenue, respectively. Both gaming giants are keeping an eye on blockchain gaming. Although at the moment Fortnite is not allowing cryptocurrency transactions, they plan to start implementing the technology in the near future, according to Tim Sweeney, Epic Games’ CEO.

Sweeney supports decentralized computing in the long run, but believes that Fortnite is not ready for cryptocurrency just yet.

PUBG on the other hand seems to be diving into the world of Blockchain already. During the summer, developers announced the integration of Refereum Cryptocurrency into the game. It all started with an in-game campaign that rewarded players with the opportunity of earning RFR tokens that can later be used as trading currency between players.

So far, the only gaming corporations that have been going full speed to incorporate blockchain technology into their operations in the gaming world are in the gambling industry. The biggest online crypto-gambling providers like FortuneJack.com have long been avid supporters and users of blockchain.

At the End of the Day

It is clear that the gaming industry’s adoption of cryptocurrency is just a matter of time. The potential opportunities and rewards associated with the new technology are simply too significant to be ignored. We are waiting to see how gamers from all around the world are able to reap the benefits of a simpler transactions system – a promise that blockchain technology means to keep.

George Khmelevski