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The Impact of Blockchain Technology on the Gaming Industry
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The Impact of Blockchain Technology on the Gaming Industry

You must be wondering how blockchain technology can enhance video games, right? It's a lucrative market, and many people are looking into the possibilities. The gaming industry will change and benefit from blockchain in its first significant application, making it more enjoyable than ever.

When gaming finally gets past the remaining problems, it will be an excellent example for other businesses that want to use blockchain technology widely. The gaming industry is growing at a never-before-seen pace. There are signs that the gaming industry will be worth more than $300 billion in the next five years. This is due to an increase in new players, particularly on mobile devices, which make gaming more convenient and accessible.

Video games can be monetized using blockchain technology, particularly NFTs and cryptocurrencies. Character skins and other in-game items are available in many live-service games and can be bought with game currency and traded with other players. The ability to convert virtual goods into actual money may be outlawed in countries where video games are regarded as a form of gambling. This has led to problems on the market, like skin-based gambling, and publishers are against allowing players to make real money playing games. Blockchain games typically allow players to exchange in-game currency for cryptocurrencies. Due to the transparency of the blockchain, this can then be converted into cash, which could resolve some issues with the market.

Origins of Blockchain Gaming

Blockchain-based games have been around since 2017, but the video game industry didn't start paying attention to them until 2021 when a few AAA publishers showed an interest in investigating their potential after critics from the arts community, gamers, and businesses in the gaming industry questioned their viability. 

The rise of blockchain-based games has changed the rules that govern the gaming industry, shifting the focus from game developers to players when it comes to making financial decisions. It is impossible to ignore the growing trend of play-to-earn gaming. It is essential to understand how it functions before diving into the details. The number of blockchain-based games has increased immensely since the beginning of 2021. 

Blockchain technology is applicable to the gaming industry due to its inherent adaptability. It makes games safer, lets you actually own game items, and gives users more control over the games they choose. Players can collect points as they play, and secure payment processing is provided. If developers can fully understand how blockchain technology can help them make games, the possibilities are endless. The usage of NFTs and the blockchain technology is very suitable to certain genres of games that make use of in-game items and center its gameplay around character progression. Web3 role-playing games, massively multiplayer online games, and action games are already making use of NFTs and integrating them into their gameplay systems. 

Traditional Gaming versus NFTs

It would seem that a gamer's opinion of NFTs depends on the ecosystem they are a part of. Regular players pay to play the games and for the entertainment value they provide. Web3 players, on the other hand, can buy any new feature that NFTs offer, knowing that the value of their collection may go up over time.

Perhaps gamers haven't embraced NFTs yet. Most Web3 users don't understand why gamers don't like NFTs, especially given their usefulness. But the technology that NFTs are built on has undeniable potential, especially for people who work in the creative industries. Even though excessive negativity toward the use of NFTs in games seems wholly unjustified, it turns out that historical factors may be to blame for why gamers are so angry with digital collectibles.

One of the main reasons why players may be biased toward blockchain gaming is that loot boxes and microtransactions have hurt the gaming industry. Players can find virtual items and upgrades in loot boxes or buy artificial boosts to level up their characters in a game that is otherwise difficult to find. They provide very little additional value for the game, though.

Gaming companies introduced microtransactions as an additional revenue stream. The problem with small financial transactions is that, even though they can add up to a lot of money for businesses, they typically take place in video games. Most people who have already paid an amount to buy the game don’t want to spend any more money in-game in order to be successful gameplay-wise. Although the microtransactions only amount to a small sum, a never-ending series of microtransactions can feel like death by a thousand cuts.

Players can find arbitrary virtual items and upgrades in loot boxes. They are similar to a grab bag in the gaming industry. Usually, to open a loot box, a player must either complete a set of goals or exchange in-game currency. Additionally, the currency is earned through repeated play or direct purchases.

Since loot boxes and microtransactions have been introduced, many gamers believe that NFTs will be just as annoying. Why would NFTs be any different when gaming companies relentlessly seek out new and better ways to lure players into pay-to-play schemes?

Critical Thinking

NFTs are not just found in video games; they are found in all forms of entertainment. Sports, movies, music, fashion, finance, and real estate are all-embracing them. Some outspoken critics, however, are strongly opposed to them. Even as the blockchain ecosystem keeps growing, there is still a lot of hostility toward NFTs among people.

Unfortunately, the louder critics are in public, the harder it will be for them to change their minds in the future, even if new information shows that they were wrong. That's because once people publicly express their strong opinions about something, it can be difficult to change those opinions. They'll need a way to react to these situations so they can change course without causing too much damage.

People who don't like NFTs can be found at all levels of gaming, from weekend players to esports pros to businesses. They all have legitimate complaints about blockchain and NFT intrusions into their markets. Even Steam, which is one of the most well-known services for getting games to people, has given in and banned blockchain-related games from its platform.

NFTs are already providing new opportunities for those in the arts sector to sell their works directly to their fan bases indefinitely. What's more, they can do it without having third parties like managers, agents, galleries, and record labels steal all the money. For instance, the ability to continue receiving royalties for a lifetime for each resale of a work of art is a huge benefit to artists who, in the past, could only sell their creations once.

The art industry is not the only one, though, that profits from NFT advantages. People are starting to understand that NFTs' utility goes beyond the overstated reports we hear about the sales of millions of dollars' worth of digital art. Therefore, it's getting harder to comprehend why gamers despise NFTs. It is obvious that more time and effort will be required from the Web3 gaming community to alter ingrained and hardened attitudes and demonstrate to the rest of the world how NFTs enhance games. Who wouldn't want to have full ownership of their in-game items and the freedom to buy, sell, and collect them at any time?

Opposing Ideas

Many game developers get excited about the possibility of including NFTs in their works, only to backtrack and rethink their decisions in the face of negative public opinion. Thus, traditional gaming companies that announce their intentions to incorporate NFTs only encounter criticism. On the other hand, Web3 NFT projects on the other side of the aisle have added game development with little to no opposition from their communities.

Since the responses of these two communities are so different, it seems that background and expectations play a role. Players anticipate that new releases from major gaming companies will live up to the standards set by earlier releases. Additionally, they want them to compete with or outperform the current gaming market offerings. However, the community is open to innovation with games that come from the Web3 space. Creators can emphasize novelty because they are less afraid of failing as a result.

Conclusion

Web3 companies are experts in NFTs, and gaming companies are specialists in gaming. It's unfortunate that bigger companies haven't yet effectively collaborated. Companies want to avoid alienating their customer base at all costs. Even if they are correct in their assessment that in-game NFT assets are the next big thing, they will be powerless to intervene due to the potential consequences. Risking a full-fledged revolt is something entirely different. It's hard to come to an agreement when traditional gaming companies keep getting criticized when they test NFTs and Web3 gaming companies are written off as unimportant.

There will hopefully be new aspects, open communication, and improved educational platforms. The solution is to not use slurs and not be prejudiced. Once notable gamers and developers get over their NFT bias, they'll see the advantages that they provide. Even though the resistance appears fierce right now, I believe this will change in the near future. We need to be mindful of how the industry advances. You can keep a finger on, keep up with blockchain gaming news and have a look at informative blockchain blog posts on Spintop Network.

Blockchain technology could make the gaming industry better by letting players use NFTs and cryptocurrencies to make money off of in-game items and currency. This allows for more control over the games for players and can provide a new revenue stream for developers. However, there are still some issues to be resolved, and there are concerns from players about the negative impact of microtransactions and loot boxes on the gaming industry. It is important for all parties to understand the potential benefits and drawbacks of blockchain technology in order to fully embrace it in the gaming industry.

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The Impact of Blockchain Technology on the Gaming Industry

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