BLOCKCHAIN AND THE GAMING INDUSTRY
The gaming industry is one of the fastest growing industries in the world. The industry has an estimated 2.5 billion games worldwide, an estimated US$143billion worth, and consisted of roughly 2457 companies with over 220,000 people employed. Between 2018 and 2019, the industry had a 9.6% increase in worldwide spending.
The specific characteristics and dynamics of the gaming industry make it a rapidly growing segment of the global technology sector. From arcade games and consoles through mobile and PC gaming to virtual reality and motion based play, the gaming industry keeps expanding. This makes the industry an excellent market with many opportunities to be explored.
To tap out of the immense opportunities which abound in the gaming sector, blockchains began to transform the gaming world. This transformation was implemented through many use cases. To start with, the major use of blockchain within the gaming sector is liquidity. The use of crypto currencies has enabled the in-game purchase of gold and collectibles instantaneously. Through this, players do not need to wait for third party payment to process their fiat currency transactions before they can purchase game collectibles.
Also, blockchains are remodeling the structures in which games are built example: as either decentralized or hybridized games. With either of the modes, blockchain takes in-game assets and makes them as own-able as possible, thus creating legitimacy and permanent value.
Blockchains also provide a safe and secure environment for game developers and entrepreneurs. The fact that the gaming industry is lucrative makes it highly susceptible to numerous frauds. These range from fake sites to account takeovers. In similarity to blockchain-based trading, blockchain gaming also guarantees a safe experience.
Furthermore, blockchain is decentralized. This ensures transparency in gaming as neither developers nor gamers can alter data without a centralized authority. This results in a higher level of trust and customer loyalty. These and other ways show how blockchain gaming is transforming the gaming industry.
ALGORAND IN THE GAMING INDUSTRY
In a bid to tap into the opportunities presented by the gaming industry, Algorand, a world-class blockchain powering secure and efficient frictionless exchange, ventured into the blockchain gaming sector by joining the Blockchain Game Alliance (BGA), a coalition of about 150 gaming companies who are committed to promoting and spreading awareness about the advantages of blockchain technology within the game industry, as a member and supporting sponsor.
Before joining BGA, Algorand was also selected by FIDE Online Arena to store its digital games. The rationale behind FIDE Online Arena's choice of Algorand was the ability of the Algorand blockchain to bring reliability and transparency to the rating system of digital games.
As FIDE Online Arena's official data storage platform, Algorand's open and public blockchain brings full transparency and automation to the digital chess ecosystem. As player ratings were verified on the blockchain, the results were reliable and secure from fraudulent activities. The blockchain's protocol also removed friction from the existing model, thereby enabling millions of global chess players to have access to transparent reporting to one of the world's most popular games. Also, Algorand's public ledger provided enterprise-grade scalability which accommodates digital chess organizations' need to verify ratings for the millions of chess players globally.
However, the transformation Algorand brought to digital gaming reporting with FIDE Online Arena was just the tip of the iceberg. Through its membership of BGA, the blockchain is refining the identity of the segment as a trusted, open and transparent market, and also giving the gaming industry more credibility by establishing trust between all industry participants. Some of the peculiar benefits of the Algorand blockchain offer the gaming industry are:
- Scalability: the gaming industry has come to require scalability, an inherent feature of Algorand, due to the high number of users, records, and transactions within the industry. With millions of online games being played online each day, there is a need to enhance the number of transactions that can be sealed on-chain.
- Network Speed and Finality: Algorand's blockchain offers the gaming industry a fast network speed and finality that unleashes new gaming possibilities. These features of high network speed and finality of transactions place Algorand in a position to handle the enormous amount of transactions to add records or allocate rewards.
- Creation of Non-fungible Tokens (NFT): the creation of non-fungible tokens is an inherent use case of the Algorand blockchain. These tokens add real-world economic incentives to gaming by giving game users proof of ownership of game items and characters. This serves to transform the monetization model for both players and game developers.
Apart from these benefits, Algorand also offers the gaming industry minuscule transaction costs, a robust set of developer tools and resources, expanded market opportunities for players and publishers, and community ownership of the entire gaming system. The combination of transparency, security, and scalability which Algorand offer makes the blockchain the preferred platform for reliable and transparent reporting in the digital gaming ecosystem.