Blockchain And Gaming: Taking Power From Companies And Giving It to Players

Blockchain technology finds its use it different spheres, from the fashion industry to gaming. Interestingly, major cryptocurrency exchange Binance recently published a report that covered blockchain use cases in gaming.

Pointing to blockchain as new technology to gaming industry, the report detailed the way in which hundreds of DApps and games were being developed on blockchain networks. The report read:

“As a distributed database, a blockchain-based system can be used to verify and secure all sorts of digital data, including in-game history, digital items, and tokenized assets. The main idea is to take away the power from the gaming companies and give it back to the players.”

In a section titled “Blockchain’s impact on the gaming world” the report outlined several factors which contribute to blockchain’s utility in gaming. The first one was “real ownership”: blockchain-based games allowed users to exercise full control over their in-game assets. The second one was its decentralized nature, which eliminated the need for trust between players together with empowering censorship resistance.

Noting that blockchain could reduce fees and speed up financial transactions with digital tokens, the report stated that decentralized nature of the technology can prevent hackers and cheaters from corrupting the game as there was no single point of failure.

The report also further detailed some of the limitations of implementing blockchain technology in gaming. Covering the issue of centralization, Binance maintained that not all blockchain games are completely decentralized, and most of them are too simple to lure gamers. The report also stated that fundraising to launch and maintain a blockchain game could be tough, considering the lack of adoption, along with scalability challenges, which may limit the developers’ work.

Finally, noting that blockchain technology had massive potential in the gaming industry with features such as decentralization, transparency and interoperability, the report opined that if developers will devise the way to combat the major limitations, blockchain would likely to change the gaming world for better.