Is Blockchain the way to go for the Gaming Industry?
Initially designed to power bitcoin, blockchain technology has spawned a wide range of uses hitherto not conceivable to many. Today, the technology has found application in almost all aspects of our daily lives, from healthcare, shipping, finance, to education, entertainment and much more, to earn the term ‘the Internet of Value’.
Beyond these sectors, the technology is also gaining traction in the gaming industry. Estimated to be worth more than $138 billion as of 2018, forecast shows that this industry will experience an annual growth rate of 13%. It’s further estimated that 70% of American population are gamers.
Going by these statistics, it is evident that gaming is not just for leisure, but it is a huge industry that generates substantial revenue. However, a challenge that this industry faces and one that can be addressed through active governance and impact investing, is that most of this revenue does not trickle down to developers and the gaming community.
More Players Realizing the huge potential in the gaming industry and capitalizing on some of the challenges in the sector, Huntercoin, a premier blockchain-based game was launched in 2013. Built on the Namecoin code, Huntercoin enables players to earn rewards in the form of HUC tokens. Since its inception, Huntercoin developers have launched XAYA, a blockchain platform that provides an open-source gateway for developers to host their games.
Integration of blockchain technology in the gaming industry has been attracting new players. For instance, an Australia-based video game developer has partnered with HashCash Consultants to roll out crypto exchange and tokenization services for the gaming industry.
According to Joseph Oreste, founder & CEO of Qupon, gaming companies are increasingly embracing blockchain technology to tap into its numerous benefits. Some of areas that such firms are looking to apply blockchain include attracting online communities and distributing content or products. Citing increased interest by developers, Oreste thinks the gaming industry could be the next big frontier for blockchain adoption.
He says, “Gaming is very popular for 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. It will be interesting to see the innovative ways gaming will be adapted to distributed technology.”
A New Dawn One way in which that the gaming industry will integrate blockchain is the provision of transparent and fast payment platforms for both developers and gamers. Through the distributed ledger technology, players will be able to purchase games faster and in a more secure way.
On the other hand, developers will be able to sell their software without having to go through app stores, an aspect that will eliminate commissions paid to third parties. In a nutshell, blockchain technology is set to personalize gaming experience while opening new revenue streams. This will create an environment where gamers have control of their virtual assets and are able to freely interact with game developers and gaming communities.
Disclaimer: David Drake is on the advisory board for most of the firms mentioned or quoted in this article.