The gaming industry has gone through tremendous revolutions and transformations over the past decade. The old model of paying with cash once and purchasing shelf games is increasingly giving way to platforms like Steam and app stores where you purchase online games or pay while you play.
Games have now become full-fledged trading channels and markets, where players invest money with other players to pay for services, unlock expansion packs and new levels, or purchase and swap in-game assets and resources.
While the online model has opened up new opportunities, new problems that arise from contradictions in the global payment environment have also been implemented.
Gaming cybersecurity is also becoming a concern, and the industry has had quite a few problems of late.
Blockchain, the transformative technology that drives cryptocurrencies such as Bitcoin and proves its value and applicability in other industries, may provide both gamers and game developers with a remedy that will be beneficial.
Meeting the challenges of payments
One of the main challenges in online payment is its fractured landscape. There are thousands and hundreds of payment services, each of which covers a regional area of its own. Although this does not create any issues with the services provided in those particular areas, game developers, who typically appeal to a global audience, may be irritating.
It is nearly impossible to deliver all those numerous payment mechanisms in games, causing headaches to developers' integration and yet leaving out players who do not have access to those channels.
In addition, there are also more barriers to the revenue collection process. For example, Apple Pay takes a 30 percent cut from every in-game purchase, and the developer typically requires a 60-day-long process to collect the funds.
Many of these issues may be addressed by a blockchain solution. Cryptocurrencies such as Bitcoin are internationally accessible, and will provide both developers and gamers with a common tool to use.
In addition, blockchain eliminates traders and brokers, providing developers with a way to pay directly for the use of their game. A network based on smart contracts can provide a system where players direct funds to the developer's wallet immediately, without any intermediary taking cuts, instead of waiting for revenues to be distributed. As with the music industry, blockchain gives control back to the creators of art.
As a payment medium, some sites such as Steam have implemented support for Bitcoin. Players can now use crypto cash to purchase games or in-game assets.
Other businesses, such as Gamecredits, have their own cryptocurrency that users can buy and spend on various games that support the Gamecredit wallet through a local payment medium.
However, just as the case is with any other payment tool, the acceptance of cryptocurrencies in games will itself be a challenge. Despite the excitement surrounding Bitcoin, Ethereum, Monero, Zcash and other cryptos, niche enthusiasts have yet to find an audience.
But the blockchain still has other applications.
Meeting ownership challenges
In-game items are becoming more and more important and coveted, following a number of problems with management and security. Proof of ownership, duplicate prevention, fraud, theft and other issues present on every site where value assets are exchanged are present in online games.
Blockchain can provide a transparent and frictionless platform to express and share ownership of in-game properties as an immutable transaction ledger.
The blockchain strategy would overcome many of the barriers currently blocking the path of gamers who want to exchange in-game goods. It can also provide a distributed market where it is possible to exchange assets through games. This is an alternative to black markets that are risky at best and fraud-ridden. So, without fearing theft or the lockup of your PayPal account, you can exchange a laser gun from a sci-fi game for a pouch of gold in your fantasy RPG.
Blockchain also opens the door for a whole new line of games, including trading card games, that are focused on in-game trading. Though eliminating problems such as card quality degradation, Blockchain will perfectly accept concepts such as small prints and fluctuations or shifts in value.
Meeting the challenges of security
A hot target for hackers is gaming platforms. Fraudsters and hackers have taken away large chunks of the money circulating in the industry, from direct attacks on huge gaming sites such as Steam, to scam plots executed in unorthodox trading hubs.
The reality is, these sites are not the most safe places to store money-worthy properties. The developers are also not security-conscious individuals like the ilk of the banking and finance industry.
Blockchain has proved its resistance to fraud and hacking schemes. While there is no such thing as total security and hackers are going to find ways to social engineer their way into their victims' wallets, the blockchain provides a harder target to aim at and a safer infrastructure, and the wheel does not need to be reinvented.
Blockchain on games industry, hmm sounds nice :))