Blockchain Revolution And Prospects For Crypto Gaming Development
The blockchain revolution and the speedy progress of the crypto sphere dictates changes in various life spheres, including entertainment. The gaming industry is right on its way to adopt new technologies. It has become clear after the success of CryptoKitties that entered the market in October 2017 and still remains one of the most popular blockchain games. It's a modern variation of 21st-century tamagotchi, but much more advanced.
The use of the digital economy in the gaming industry has become possible with the rise of NFTs — non-fungible tokens. They have a fundamental difference from other cryptocurrencies: each of them is unique and cannot be used as a substitute for another. CryptoKitties, like many other crypto games, use Ethereum-based ERC-721 tokens. But as the blockchain revolution kept on, new standards, like ERC-1155, ERC-998, emerged and were successfully applied in crypto gaming as well.
By using NFT tokens, players create unique collectible game items — this is what determines the gaming tokens value. The most expensive crypto kitten was sold for $172,000, while the regular price of such a pet is $15-20.
Why is crypto gaming destined to succeed?
The classical model of a virtual economy has one major drawback: it exists only virtually. Gamers spend energy, time and money, and their investments are not backed by anything tangible. The only measure of success is the character level and items existing in the virtual world. But the game may bore over time, or access to it may be restricted for some reason — as a result, the player ends up with nothing. All achievements and in-game assets, acquired for real money, just disappear and remain the property of the game creators.
We don’t take into account professional gamers for whom gaming has become a real work. This is about ordinary people who play games just to relax and have fun.
It's not a secret that there is a kind of the "black market" for gamers, where a successful players can sell collectibles or even their account for fiat money. Such actions are forbidden by game developers, yet it doesn't stop those who want to get results quickly. Nevertheless, it all comes down to one thing: users do not actually own items they have in the game.
The blockchain revolution and the rise of NFT tokens change everything. Users can buy and sell items for tokens, which is the basis of the crypto gaming economy. Of course, such tokens do not have value in the real world, yet cryptocurrencies of some successful projects are actively traded on crypto exchanges. Anyone can track their dynamics and evaluate the prospects of gaming tokens value in the real market, or withdraw funds and get fiat if necessary. Meanwhile, the risk of fraud is excluded due to the use of blockchain and smart contracts. Users always receive what they purchase or get money back — there are no other options.
Problems and Solutions
Opinions on whether to implement Ethereum into the gaming industry are divided. Some experts believe that the platform is a perfect basis for games development, wherein not all games need special tokens as ether is enough. Other experts are reminiscent of main network vulnerabilities, such as the scalability problem and slow transactions.
Developers have a choice — they can use Ethereum or any other blockchain, for example Minter, which also allows creating different tokens. However, well-known projects, such as CryptoKitties, CryptoPunks, or Decentraland, stick with the ERC-721 standard.
Now, we can only keep an eye on the development of the crypto gaming industry. Since the blockchain revolution is widespread, this means we should expect a large customer focus. Not only do developers need to offer a technically interesting product, but also a good-looking design to attract more token holders. Let's see if this will happen and what new games will appear in 2019.