How blockchain is revolutionizing gaming
Two of the fastest-growing markets in recent years are gaming and blockchain. One is well established, with billions of loyal users, while the other — which broadly consists of “blocks” of immutable data stored in “chains” on decentralized, distributed, digital ledgers — is less well-known, but with infinite potential and huge advantages to gamers. In short, blockchain is shaping the future of gaming.
The positive effects of blockchain on gaming encompass a whole raft of extraordinary benefits to the estimated three billion gamers around the world. Increased security, flexibility, control and verifiability; more exciting challenges; and new economic opportunities, will open up a whole new virtual world, or Metaverse, to all users in the industry.
Gamers will finally have the ability to buy, trade and sell digital assets earned within games as NFTs (non-fungible tokens: one-of-a-kind, non-interchangeable assets, stored securely on the blockchain, and verified as authentic), and also to trade them on other gaming markets hosted in the same blockchain.
Decentralization: DAOs and smart contracts
Without the strict monopoly of major companies, which controlled the industry through their massive data centers and their economic might, developers and creators will have far more creative freedom in a newly open market. In addition, gamers will enjoy benefits, with rewards for participation, the ability to own and trade digital assets, and providing capacity and resources to fellow gamers.
A major part of this is decentralized autonomous organizations, or DAOs, digital institutions owned by their members, whose governance is run on a blockchain-based protocol. This type of organization is operated democratically, with distributed leadership: business decisions are voted on by members, and subsequently enacted automatically in the blockchain. There’s no president, CEO, CFO, governing board, or committee.
The DAO’s rules are pre-programmed by fixed “smart contracts”, and cannot be broken or altered, providing complete confidence and transparency for members. Noone can change these regulations, or wield undue influence, as typically might happen in traditional companies. Yield Guild Games, for example, is planning its own DAO, using smart contracts run on the Ethereum blockchain to issue rewards and NFT rentals.
In terms of further direct advantages of decentralization to Banger Games users, they will be able to provide resources to fellow gamers, using P2P network and cloud gaming. This will open up the gaming ecosystem to all users within the Metaverse — in other words, everyone with a PC or console and a broadband connection.
Security: data control, verifiability, and transparency
The security provided by transacting on the blockchain is an essential element for gamers — each transaction is recorded, verified, and transparent. These transactions are stored on an open, digitally distributed ledger, which cannot be altered. Digital currency and NFTs can be stored with complete security and peace of mind.
Gamers will also have more control over their own data, using blockchain protocols; this was previously held by large companies, presenting security concerns in case of data leaks and hacking. All data can be accessed by players, operators, and regulators in real-time, preventing fraud.
In addition, most games, if not all, have rewards built-in. When prizes are allocated randomly, it is very important that users have confidence in the randomness of these prizes: they must know that the winners have been selected fairly. For reliability and transparency, online gaming platforms will use random number generators, to ensure that all winners are chosen randomly, verified by cryptographic proofs on the blockchain.
Monetization: cryptocurrency, NFTs, and stablecoin
This new creator economy using DeFi (decentralized finance), another key blockchain advantage, will revolutionize online gaming, offering further flexibility to the gamers themselves and allowing them to monetize their time spent gaming, reward them for participation, and, most importantly, creating, selling and trading their own digital assets.
Previously, assets and collectibles such as skins and emblems, and rewards earned in-game, had to stay within the same game: now gamers will be able to create their digital assets and convert them into NFTs. They can trade and sell these, taking their earnings from one platform to another, offering new flexibility that has never been available before.
In addition, stablecoins can be used in blockchain gaming — this type of cryptocurrency is pegged to a fiat currency (for example, dollar, euro, pound sterling) or commodity (such as gold), providing greater stability in its value than other digital currencies.
Blockchain takes the experience of gaming to a new level, making it more immersive, creative, entertaining, secure, and economically productive than ever before.
Banger Games is a platform for gamers that connects and rewards all user types within the industry, for completing objectives and for contributing towards the growth of the IoG (Internet of Gaming) network.
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