Blockchain is the future of gaming. As blockchain tech continues to improve, gaming will move towards this technology. It can be expensive to future proof an existing process, but the cost of not upgrading is comparable. While it’s still early in its development, the gaming industry is already moving towards blockchain powered infrastructure. As more players begin to adopt blockchain technology, regulations will need to catch up. This article will explore why we need more rules and regulations for blockchain gaming.
Off-chain gaming creates a decentralized market
While the popularity of blockchain-based gaming is still limited, hundreds of games are slowly amassing millions of players and millions of dollars in sales. This trend has prompted some developers to shift to alternate platforms. Off-chain gaming is one such example. This new platform creates a decentralized market for game assets, allowing players to purchase real-world assets and monetize their gaming time.
Unlike centralized servers, which can be shut down at any time, blockchain technology allows players to continue playing games and creating new ones. This innovation helped drive the blockchain revolution in 2017. The most popular game in 2017 was CryptoKitties, a platform that allowed users to buy and sell virtual kittens. The game’s non-fungible tokens made these virtual kittens unique digital assets. The rarer a Cryptokitten is, the more valuable it will be. The decentralization of the gaming industry may lead to more competition between smaller developers and big studios.
It can be used to secure data in existing processes
Besides using blockchain to secure data in existing processes, the same technology can be used for cryptogames. Cryptogames like CryptoKitties use blockchain to secure data. But the issue with this approach is speed. Blockchain networks are notoriously slow. Some of the most popular games on these networks clogged up the Ethereum blockchain and required an emergency task force. Besides, players have to create private keys for every game they play, and the system also has a per-transaction fee.
The gaming industry is a lucrative industry, with billions of dollars in revenue every year. But while many of the most popular games require real money for purchases, some still do not. Many players purchase in-game assets using fiat currency. Using blockchain to secure in-game assets could improve both the game developers’ and publishers’ processes and ensure that they are fair to players. This technology could be especially useful for free-to-play video games. Fortnite, for example, generates most of its revenue through in-game purchases.
It allows for transparency and visibility for regulators
With its decentralised design, Blockchain technology enables transparent gaming and helps to balance costs in online casinos. Decentralised databases also offer players anonymity. Online gambling sites that demand too much documentation and verification could be compromised by hackers. Blockchain technology is also proving useful in the art world, where tokenization is used to reduce transaction costs and improve transparency. In July 2018, art investment blockchain platform Maecenas partnered with Dadiani Fine Art to sell fractional stakes in Andy Warhol’s “14 Electric Chairs.” The auction was conducted with a smart contract on the Ethereum network.
As blockchain technology continues to develop, it can be used in gaming and will revolutionize the industry. Gaming operators will be able to automate and streamline processes, including onboarding, wagering, and cashouts. Players will also be able to use low-cost blockchain payments such as native tokens like Bitcoin SV (BSV). As more operators turn to blockchain, they are also realizing the benefits of future-proofing their business models. There are still some challenges, however, related to how the technology can be used in the industry.
It can be used to protect copyrights
While blockchain games have the potential to benefit from more regulations, they aren’t immune to copyright violations. Even if they don’t violate any copyright laws, they can violate the rights of the creators of games. The first step in protecting copyrights is to create rules and regulations to ensure that these games don’t infringe on anyone’s intellectual property. Many countries already have some rules in place.
The value of blockchain gaming tokens is based on real-life assets, like money and properties. In some countries, these assets are regulated by local laws. Therefore, blockchain gaming corporations must work with local governments to ensure that their games adhere to these laws. This will help ensure that gamers aren’t violating the copyrights of others, and that blockchain games are legal to play. Further, these regulations can help to keep online gaming legal.