As you no doubt have seen, the adoption of blockchain technology is becoming increasingly common; in fact, we have a series of articles all about the different industries that utilize blockchain like the one about the healthcare industry.
Today, I’m continuing the series by showing you how blockchain technology can affect the gaming industry and how it can address some of the issues developers face. There are three major areas blockchain can help greatly in and they are security and fraud, in-game purchases, and owning assets.
Security and Fraud
2020 was a particularly bad year for gaming hacking incidents from the Capcom Ransomware Attack to the CD Projekt Red hack. As we know, blockchain networks use incredibly powerful data encryption that would make a DDoS attack almost impossible to enact and succeed.
Blockchains can be protected by running smart contracts on top of the network which can enforce security measures by allowing users in the network prerequisites are met or revoke access if the terms are breached.
Alena Burdock, managing director of technology education company Binary District, said regarding blockchain in gaming,
“There is a huge market for the sale of characters, weapons, and other augmentations in multiplayer and RPGs. Underpinning this market with blockchain could add enhanced transparency and security… and also potentially open the door to inter-game trading and transfers.”
Utilizing a blockchain for purchases can kick out the third-party middlemen to instantly process fiat currency transactions as well as providing proof of ownership, and companies have already started implementing this. For example, there is ENJIN Coin which is a gaming cryptocurrency meant to solve the issues concerning virtual goods and their real-world value in games and their communities.
Buying and selling crypto tokens is relatively easy and can allow players to manage their game assets in a secure environment. Going back to ENJIN Coin, Enjin the company has a digital wallet for players to store Bitcoin, Ether, and in-game assets, but also players have other options as well like MyEtherWallet or the Ledger Nano S.
This is the future #NFTs are heading where we will see #blockchain games use 3D assets in AR. This will bring entire new world of gaming to the masses that will expand beyond your couch even local businesses can be apart of it. https://t.co/TKKFZOUNR0
— DannyKass.eth (@dannygkass) March 22, 2021
With everything being recorded on a decentralized blockchain, everyone will know who owns what and no outside way to change ownership; however, this may be difficult to implement.
What’s Stopping It?
Implementing a blockchain network of a scale befitting a game developer will no doubt be difficult and there may not be enough engineers with the know-how on how to create one; for now at least. There’s also the issue of the trilemma which refers to the main issues with implementing blockchain: achieving a network that is secure, decentralized, and the degree of scalability which is the capacity of a network.
Despite the logistical issues, this hasn’t stopped gaming companies from going full steam ahead on implementing blockchain in their business like Square Enix.
I think blockchain can change a lot in video games, but it has to be the right game. To go back to what Alena Burdock said, I think RPGs and multiplayer games like Call of Duty for example would benefit a lot from a blockchain network.