4. Proof of Asset Scarcity

The public blockchain ledger will allow game developers to create rare virtual items, and prove their scarcity.

Developers could easily create web pages which pull data from the blockchain for users to track availability of their most coveted digital assets. No one can fool the blockchain: if there’s a specific amount of something on there, that’s all you’ll see.

This gives proof of rarity to anyone who wishes to create rare digital collector’s items.

This is the primary reason why Crypto Kitties has been so successful.

Crypto Kitties is a simple independent game where users obtain and trade cute cats that are stored on the blockchain. In its first week Crypto Kitties processed millions of USD in transactions, with their top selling “Genesis Cat” going for $115,000 USD. Proof of limited supply is what created the incredible demand for these virtual items, and the rarity of these items is confirmed by the blockchain.

Crypto Kitties was met with such unexpected success that the sheer volume of transactions overloaded the Ethereum network, causing day-long delays in transactions that might otherwise have taken minutes.

Breaking a powerful distributed network that holds billions of dollars in value, by being too successful, is a measure of success unto itself.

5. Regulated Gaming Economies

Many game developers and governments have one major thing in common. They know that banning trade, does nothing but create unregulated black markets.

This is bad for everyone.

Game developers lose the ability to control the parameters of trade, missing out on potential revenue and putting their users at risk of being scammed.

Players have to resort to breaking the rules and, in doing so, risk being banned just to get the items they desperately want.

The blockchain can be programmed to give developers and server owners the ability to collect ongoing royalties for items being traded throughout their gaming worlds. Developers can also choose to allow items to be traded with no restrictions and can even stop them from being traded at all.

The blockchain is an economic regulator’s dream: because there’s no policing necessary and there’s no way to circumvent the system. The only way to work around the blockchain is to sell your whole asset wallet, trading all that you have, or nothing at all.

6. Players Could Make Items Even Rarer by Altering Them

In some cases, items could be customized by players allowing them to re-create and trade upgraded assets with unique properties.

For example, if a player had a high level skill which allowed him to cast a unique enchantment on a rare item, then doing so would allow him to create something very limited in supply, which he could hold a monopoly on — and sell at a premium price.

This gives the user new ways to use his skill-set and it gives other users an interesting opportunity to do business in-game with a merchant of rare items.

7. Saving Millions on Payment Processing

Decentralized payment gateways will allow users to make payments with a fraction of the fees that are currently paid to credit card companies.

Developers will also save a king’s ransom on payment gateways and merchant subscription fees.

The blockchain fees find their way to the miners, who are rewarded for running their data processing hubs. But there are so many of them and they are so far removed from the end-user that they have no way to manipulate the market.

8. Micro-Transactions Could Make Gaming Fairer

The ability to take micro-payments quickly, easily and affordably will give developers new ways to monetize their games.

Cheaper power-ups will allow more users to justify buying items, especially knowing they are gaining something with real-world value.

Subscription services can be commenced, cancelled and calculated on a second by second basis, allowing users to set a limit to their spend. They could login and logout freely, knowing they are only paying for the exact duration that they used.

Automatic in game transactions can be set so players can allow games to automatically deliver assets at a cost without having to tediously approve or reject requests, creating a more fluid gaming experience.

This could completely change game development strategy, as monetization goals would no longer be based on serving the few, instead of the many. For example, in a $41 Billion dollar mobile gaming industry, half of the revenue is generated from 0.19% of the users.

This heavily influences many developers to change gameplay to cater to the time poor and asset rich.

Seems unfair, doesn’t it?

With blockchain, this strategy will likely prove counterproductive because developers will be neglecting the far greater market who are now open to spending on items.

Even a slight shift in this status quo will boost the value of the industry by billions.