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The state of the gaming industry today
The vast majority of online games follow a centralized model. This means that all related data is stored on a server fully controlled by the game’s administrators.
Typically, the data includes account information and server history, which records and stores all events and in-game assets collected by players (such as collectibles, items, and virtual money).
Since the database is owned by a single company, players do not actually own their accounts and items.
In other words, the power is in the hands of the gaming companies.
What benefits can blockchain bring to the gaming industry?
Let’s take a look at a few of the ways blockchain technology is changing the gaming industry today: 
Asset ownership
Blockchain can simplify and secure the ownership of in-game items, which is one of the main use cases for NFTs today. Typically, each asset is represented by a unique non-fungible token (NFT), such as ERC-721 tokens. Regardless of the type of asset, they can all be associated with blockchain tokens backed by a distributed network.
Transparency
Developers can create independent economic systems in games. Since the structure is decentralized, the level of transparency will be an added benefit.
Return power to the people
The inclusion of the blockchain will make the gaming space more democratic. By introducing the right to vote according to the number of tokens, developers can make decisions that players find attractive.
Payment optimization
Last but not least, the use of blockchain instead of centralized servers allows games to reduce transaction times and costs.
Blockchain restrictions in games
Building and maintaining a blockchain game is easier said than done. Let’s also look at some of the limitations of blockchain in gaming.
Scalability
Scalability is one of the most significant limitations of blockchain, as centralized networks tend to be much faster than blockchains.
Demand
Demand for blockchain games is significantly lower than their traditional counterparts due to the scalability issues faced by developers.
Centralization
Blockchain games are not always decentralized. Some games use a centralized server to distribute tokens.
Maintenance Developers
often face difficulties in fundraising when it comes to supporting the blockchain game.
Resources
Small teams make it difficult for blockchain game developers to compete with large centralized game developers.
An example of blockchain games
Blockchain-based MMOs have successfully harnessed the potential of distributed storage technology as a fundamental infrastructure. This not only ensures the uniqueness of the various game assets, but also supports the value proposition.
One of the most successful examples of modern blockchain games is CryptoKitties. CryptoKitties, launched in 2017, allows players to buy, breed, upgrade, and trade virtual kittens on the Ethereum blockchain.
After the huge success of CryptoKitties, many developers have come up with similar concepts and projects, including CryptoBots.
CryptoBots is another online multiplayer game where you can buy robots and upgrade their skills to compete with other players.
In the case of CryptoKitties, you can create unique virtual kittens. Similarly, with CryptoBots, you can create robots with unique skills and abilities.
As a rule, blockchain is applied in the gaming industry in two ways:
- The whole game is built on a blockchain. The developer can run the game off-chain instead of relying on centralized servers.
- The game may run on a centralized server, but it will have a blockchain-based platform for managing tokens, digital currencies, and collectibles.
One example of the first type is Taurion, a game built on the XAYA blockchain. The entire game is built on XAYA and has no centralized servers.
In short, launching a massively multiplayer online role-playing game (MMORPG) on the blockchain helps developers and players overcome some of the limitations of a centralized server.
Soccer Manager Elite is another blockchain based game developed by XAYA. In this game, you can own, organize and play online football.
TRON is one of the most playable blockchains at the moment, providing easy setup and a streamlined development process. It is a blockchain-based decentralized platform that aims to build a free global digital content entertainment system with distributed storage technology that enables easy and cost-effective exchange of digital content.
In the future, we can expect more and more crypto market participants to create game-centric blockchains.
Final Thoughts
Blockchain has the potential to reshape the gaming world as we know it, and could end the monopoly rule of a handful of game publishers and developers.
Online gamers tend to prefer digital items sold as in-game tokens over traditional purchases without a unique value proposition. While we may have to wait a few more years to see widespread use of blockchain in gaming, we can expect a more transparent, secure, and democratic gaming environment in the future.
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