Why Does Gaming Need Blockchain Technology?

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09.11.2021
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Blockchain technology for games

Unless you have been living under a rock, you are probably aware that the gaming sector has been growing exponentially in recent years. In fact, it is one of the industries that gained the most from the COVID-19 pandemic.

That said, many do not know how this growth looks like in numbers.

  • The global gaming market is on track to generate $175.8 billion in 2021 and surpass $200 billion in 2023. These numbers make it the fastest-growing entertainment segment globally.
  • Industry experts forecast that one billion people will be online gamers by 2025.
  • Three of the top four most viewed sporting events in 2018 were e-sporting events. The League of Legends championship, for example, attracted 30 million more viewers than the AFC Championship

However, despite this phenomenal performance, today's gaming ecosystem has some daunting flaws. For starters, while gamers spend long hours in competitive virtual experiences, they hardly get any tangible rewards.

According to industry data, only 3% of gamers can monetize their in-game achievements. Furthermore, while half of this number succeeds through specialized services and auctions, thematic forums, and P2P exchanges, the remaining half fails because of platform restrictions or fraud, which causes gamers to lose all their virtual achievements.

Besides monetization limitations, the typical gaming ecosystem is based on walled-off data networks, which do not allow users to own in-game assets like skins, avatars, and abilities outside the game itself.

Game developers also struggle to monetize their creations. Laying the groundwork typically requires significant investments, and the companies that succeed end up reeling from massive commissions charged by centralized platforms like the App Store and Google Play.

What Does Blockchain Offer Gaming?

The skyrocketing value of Bitcoin and altcoins has propelled blockchain technology to the top of the whiteboard in many industries. One of the segments keen on leveraging it is gaming.

Blockchain-powered online games are making waves across the sector, primarily because of play-to-earn (P2E) models, permissionless gaming, cost-effective development, and multi-layered experiences, all of which make gaming a lot more worthwhile.

Below are four ways blockchain adds value to online gaming.

1. Blockchain forms organic gaming economies

In blockchain-based gaming platforms, players can be directly paid to play. The IQeon platform, for instance, lets users convert in-game currencies into IQN tokens, which they can then exchange into digital assets on cryptocurrency exchange platforms like EXMO, HitBTC, BitForex, and Exrates.

Additionally, blockchain networks enable players to exchange in-game possessions like avatars, weapons, armors, collectibles, and other valuables as unique non-fungible tokens (NFTs). They can even sell them for cryptocurrencies.

Combining this earning potential with the entertainment value of online games could expand the gaming sector into a vast economy in which people make a living by playing full-time.

2. Blockchain networks are open and permissionless

Many online gaming platforms run on a closed data architecture that limits player access based on metrics like location and device type. On the other hand, blockchain games benefit from the all-inclusive nature of the blockchain. Any player can participate and earn income from a game.

As smartphone adoption and advanced networking continue to scale out, particularly in emerging markets, you can expect even more users to access blockchain-based games down the road.

3. Blockchain protocols compress the cost of existing technologies

Blockchains like Ethereum are open protocols on which anyone can build games. Developers can outsource most of their operating costs to the base layer blockchain, making it much easier to start a game. Low barriers to entry translate to higher competition and more choices, which ultimately benefit the end-users.

Moreover, all blockchain transactions are recorded in a decentralized, immutable register, which offers fool-proof forgery and fraud protection, while smart contracts guarantee payments and minimize disputes. The result is a seamlessly running ecosystem that costs platform owners little in management costs.

4. Blockchain enables decentralized multi-layered development

Because blockchain applications are open and permissionless, every developer can build on them. This fundamental characteristic allows game creators to build a layer-two game on top of a layer-one game, enabling users to switch games seamlessly and apply assets like currencies and NFTs across a broader ecosystem.

Using blockchain technology to build a larger community of interconnected games makes the experience and assets even more worthwhile. For instance, IQeon hosts various games and contests, whose participants can convert their winnings into IQN tokens and use them anywhere on the platform.

IQeon is Leading the Gaming Transformation

As you can see, blockchain technology represents a complete paradigm shift from previous gaming models. With blockchain, gamers can stop playing just for pride and start earning IQN tokens from their winnings.

Players also get the guarantee that their assets are safe for life, can be used in a wide range of games and can be traded on external exchanges. This experience translates to higher gamer satisfaction and a solid community behind a game and its developers.

Conventional gaming is about to be entirely transformed, and IQeon is right at the front driving the change. Click here to learn how the blockchain-powered IQeon PvP platform adds new meaning to online gaming and how you can be a part of the change.

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