What is blockchain?

Blockchain is the technology that makes Bitcoin and other cryptocurrencies possible by storing information in a mutually-shared ledger. These “decentralized” databases were initially used as a payment system by tracking account balances, but they can just as easily track ownership of property, the terms and status of contracts, and any other data that is likely to be disputed.

The video game industry is one of the first major adopters of this new innovation. The issue is one of enforcement: the real world won’t obey the rules of blockchain-based ownership unless mandated by law and accepted by general society. By contrast, video game developers have total power over their virtual worlds and are highly accepting of new technology.

Blockchain developers have been experimenting with this use case since 2014, in varying forms. These include for payment of and within games; putting game items on the blockchain; and even completely-decentralized virtual worlds. The blockchain has also provided new fundraising avenues by enabling Initial Coin Offerings and the pre-sale of tokenized game assets.

Now the mainstream video game industry is taking notice, with blockchain games appearing on the biggest video game platforms. The future of gaming will not be centralized!