Can the Gaming Industry Catalyze Blockchain Adoption Globally?
Adoption of blockchain technology has been rising gradually in different sectors. Beyond the financial sector, several companies in the logistics, shipping, legal and manufacturing sector have started applying the technology to develop innovative solutions to problems they face.
But it is the gaming industry that has recently emerged as a strong blockchain adopter. Increasingly, gaming firms are embracing the technology as a way to attract their online communities, distribute content and even products. The most recent entrant is Australia-based video games developer that has partnered with HashCash Consultants to roll out crypto exchange and tokenization services for the gaming industry.
Growth Potential Over the years, gaming has grown to become a worldwide industry with popularity across the board. This wide acceptance emanates from the fact that gaming is widely available and its ease of use both, on mobile phones and online platforms. This has seen gaming companies embrace blockchain to improve their products and content.
According to Joseph Oreste, founder & CEO of Qupon, gaming is widely accepted by all, and the adoption of blockchain technology will likely give the industry a boost.
He says, “Gaming is very popular among both youth and adults alike. There are billions of dollars spent globally and I believe distributed ledger, tokenization and cryptocurrencies provide a new playground for the gaming industry.”
He further adds, “It will be interesting to see the innovative ways gaming will be adapted to distributed technology.”
Even with its popularity, gaming is largely viewed as a leisure sector. However, with increasing introduction of technologies such as artificial intelligence, virtual reality and most recently blockchain, the industry has become an economic venture.
The Value Add While other technologies have influenced the gaming experience, blockchain is set to further improve on it, both for gamers and creators. For gamers, blockchain application enables exchange of in-app and in-game assets for digital assets and money. Also, it provides incentives for gamers by allocating tokens based on time spent playing games, which keeps players occupied.
Tokens are then used to trade and make payments online. Further, blockchain enhances transparency through reduction of time taken to upgrade and fix system problems. For creators, blockchain allows for development of decentralized games. This allows developers to build and manage their digital assets directly. Developers can also sell more features and game assets to players directly, and hence eliminate third party agents, such as banks and distributors.
In doing so, a higher percentage of profit goes to developers, which incentivizes them. Making gaming more secure - through defined ownership - can help reduce the possibility of loss in case of system failure. In gaming, fraud is prevalent to an extent that even legitimate games may be purchased but acquired illegally.
Blockchain is likely to facilitate fraud-proof payments and contribute to growth of the gaming industry by creating opportunities either in trading of digital currency, secure payments or development of modern applications and games. Further, combining blockchain with other emerging technologies will make gaming cost effective, sustainable and lucrative for stakeholders.
However, these benefits can only be realized if developers take immediate action integrate blockchain in their gaming projects. This will inspire 'tillit' (meaning confidence and trust) among developers and gamers.
Disclaimer: David Drake is on the advisory board for most of the firms mentioned or quoted in this article.