Blockchain is transforming gaming. Read how the future of gaming will be transformative & revolutionary with blockchain.
Introduction to Blockchain Gaming:
Blockchain gaming is simply put – games that have better transparency about game progress & are cross verifiable by everyone on the platform. The growth of blockchain gaming is slowly outpacing traditional gaming. Developers now realise the advantage of creating a more transparent gaming community for their players. The use of clever blockchain & cryptocurrency solutions in gaming allows users to earn as they play (P2E as it is called or Play-to-Earn).
Overview in Numbers:
The 2022 assessment of the global blockchain in the gaming market’s scale showed a valuation reaching USD 4.83 billion. Forecasts predict a notable expansion ahead, with a projected compound annual growth rate (CAGR) of 68.3% spanning from 2023 to 2030. This surge is attributed to the profound impact of blockchain technology – a decentralized and distributed digital ledger that ensures secure transactions and accurate record-keeping.
This technology has ushered in a paradigm shift in the gaming realm, benefiting both enterprises and gamers. It has empowered them to utilize cryptocurrencies and Non-fungible Tokens (NFTs) for procuring in-game assets. Notably, the game “Axie Infinity” operates on an NFT foundation, boasting a vast player base spread across the globe.
This gaming universe permits the employment of Ethereum-based cryptocurrencies for in-game exchanges, exemplifying the transformative potential of blockchain.
Blockchain gaming
The expansion of the market can be ascribed to the imperative for a gaming ecosystem that is secure, transparent, and decentralized. The utilization of blockchain technology effectively ensures transparency within the gaming sector by furnishing a public ledger of all transactions.
This capability empowers players to monitor the ownership and transition of their in-game possessions, while also upholding the principles of fairness and transparency in all transactions.
Furthermore, blockchain technology endows players with true ownership over their game assets and transactions, facilitating secure dealings devoid of intermediaries.
In recent times, the blockchain gaming industry has witnessed a substantial influx of investments and financial support. This phenomenon can be attributed to the surging popularity of blockchain technology, the escalating demand for games and assets characterized by decentralization, and the potential of blockchain-powered games to offer distinctive and unparalleled gaming encounters and prospects.
As a case in point, in October 2022, Horizon Blockchain Games, a company specializing in the development of games and immersive experiences on the Ethereum blockchain, successfully secured a funding of USD 40 million.
This funding injection was directed towards expanding operational capacities and diversifying their product portfolio.
Artificial Intelligence and Machine Learning in Blockchain Gaming
Through the integration of Artificial Intelligence (AI) and Machine Learning (ML), gaming enterprises possess the capability to identify instances of fraudulent conduct and proactively avert their recurrence.
This encompasses the detection of bot accounts or accounts established with the sole intention of executing deceitful activities.
In tandem, AI and ML delve into player behavior and preferences, delivering a tailored gaming encounter by suggesting games and in-game rewards that resonate more deeply with the individual player. Furthermore, these technologies extend to the analysis of game-related data and player input, pinpointing opportunities for enhancements in game design.
However, a notable hindrance to the advancement of the market pertains to the regulatory frameworks established by diverse governments. Governments exert significant influence within the blockchain gaming arena by instituting both supportive measures and regulations. To illustrate, the United States Securities and Exchange Commission (SEC) administers regulations governing the utilization of digital assets, encompassing tokens and cryptocurrencies, within the nation.
Consequently, blockchain gaming firms employing digital assets must adhere to SEC guidelines, including prerequisites for registration and compliance. The Financial Action Task Force (FATF), an intergovernmental entity, formulates protocols concerning anti-money laundering and counter-terrorism financing.
The FATF has issued directives regarding the utilization of virtual assets, notably cryptocurrencies, impacting the financial transaction management of blockchain gaming companies.
