Blockchain technology seemed like something out of a science-fiction story once upon a time. One of the most exciting tech innovations of our era, it promised to revolutionize the world and lead us away from central authorities to a more utopian and democratized world.
While its grandest claims may have seemed almost too good to be true, especially when all we knew it by was Bitcoin, there’s no doubt that it’s truly proved itself to be a groundbreaking innovation. From its many applications today, one that’s stood out starkly is gaming.
As its influence on the gaming industry has continued to expand, many now question if its future of gaming is destined to forever change the way we play games, and how they are developed, funded, and monetized. Unfortunately, while this is certainly possible, the grandiosity of these claims has led to all kinds of hyped-up marketing and plain-down scams.
To help navigate your way through all the noise, here’s a look at blockchain myths vs. reality as this ever-trending technology continues to expound across the broader gaming industry.
How Blockchain and Gaming Intersect
Blockchain has a notable role in the world of online gaming. While its applications have led to game-changing genres like play-to-earn games, it’s also become widely adopted in the iGaming industry. This has now made it possible for players to enjoy online casino real money games across a wide variety of specialized crypto casinos.
These online gaming platforms utilize blockchain technology to provide gambling games where users can bet and be paid using cryptocurrencies. However, since its blockchain technology enables this, it also provides other inherent perks for online gambling enthusiasts like unique bonus incentives, instant withdrawals traditional online casinos may take days to payout, wider gaming libraries, and fewer restrictions.
That last benefit enables other unique perks like anonymity and a more private experience since blockchain platforms can be decentralized. They therefore don’t require players to have to part with sensitive information to register and in proper, decentralized online casinos don’t require things like ID verification or Know Your Customer (KYC) checks.
It also provides better transparency with transactions, and inherent security features, and has led to decentralized finance (DeFi) and decentralized apps (dApps) that cater to games that can be developed using blockchain networks. Another key feature of this setup is smart contracts which enable the agreements that DeFi runs on to be self-executed.
Myth 1: Blockchain Will Replace Traditional Game Development
Many enthusiasts claim that blockchain technology will replace traditional game development models. The belief is that by giving players more control and ownership over their digital assets, blockchain games will create a more player-centric experience.
Reality
Blockchain is more likely poised to complement the mainstream gaming industry but it isn’t probable that it will replace it. While basically all major game studios, console manufacturers, and development companies are working on ways to integrate blockchain solutions into their plans for the future, it’s probably more likely that industry leaders will begin absorbing the blockchain gaming industry.
Established studios like Ubisoft and Electronic Arts have deep-rooted ecosystems that deliver immersive experiences. Blockchain’s ability to make games where players can own in-game assets for real and buy, sell, or trade them isn’t going to impact the fact that major game developers still have more resources.
They are still able to create games that are more immersive and feature cutting-edge graphics, gameplay, and mechanics. Players still value the depth of storytelling, gameplay mechanics, and rich narratives that traditional games provide. Blockchain is more suited to adding value to what’s already out there instead of eclipsing it.
Myth 2: Blockchain Games Are Automatically More Secure
Blockchain and better security have become synonymous. As a key advantage, many believe that since blockchain features immutability and decentralization, they are better protected against threats. However, blockchain is also slated for its privacy and transparency — only these concepts are a bit of a misnomer.
Reality
While blockchain adds a layer of security, it is not foolproof. Smart contracts, which enable automated actions in blockchain games, are only as secure as their underlying code. Breaches can still occur and data is not untouchable. Similarly, while blockchain transactions require far less personal information to be recorded, they aren’t completely anonymous.
While the immutability feature means records require the consensus of the entire network to alter records, this isn’t impossible either. Poorly written or audited contracts can become vulnerable to exploits, leading to losses for both players and developers. Vulnerabilities in the code itself can be used as entry points and exploited.
Meanwhile, blockchain records’ weakest points are the users themselves. If a user doesn’t take adequate steps to restrict access to their account by securing their keys, to hackers, it’s the same thing as giving someone your password and expecting them not to be able to get into your phone.
Myth 3: Play-to-Earn Models Will Dominate Gaming
Play-to-earn (P2E) models, where players can earn cryptocurrency or digital assets through gameplay, have gained significant popularity. The appeal is obvious — earn rewards for playing games!
As a result, supporters argue these models will redefine gaming by allowing players to monetize their time and efforts, turning gaming into a viable source of income beyond anything eSports ever imagined.
Reality
Play-to-earn models have found a niche audience, but they face challenges in sustaining long-term appeal. Firstly, not every gamer is motivated by money. In fact, most hardcore gamers aren’t and simply love playing their favorite games.
In order to remain sustainable, P2E models require new gamers to constantly join or risk seeing their native tokens lose value or remain stagnant. Many models have been found to be fake and set up to scam people, requesting buy-ins before you can earn. Larger developers are also more likely to control it than be bested by it.
True Ownership of Digital Assets
One of the significant advantages of blockchain in gaming is the concept of true ownership through non-fungible tokens (NFTs). Unlike traditional games where developers control in-game items, NFTs allow players to own their assets outside the game too.
Myth
Some believe that true ownership will automatically revolutionize the gaming industry, attracting players away from traditional models. The idea is that gamers will naturally gravitate towards platforms where they have more control over their digital possessions.
Reality
While true ownership through NFTs is appealing, it has not yet transformed the broader gaming market. For many players, the value of a game lies in the immersive experience rather than the resale value of digital items. Between market volatility and the relative B-rate nature of most P2E games out there, it isn’t likely to replace mainstream gaming any time soon — if at all.
Conclusion: Navigating the Balance Between Hype and Reality
Blockchain technology has undeniable potential in the gaming industry, offering a wealth of benefits that come standard with it. These include better security, privacy, and the ability to even earn from playing games. However, in reality, blockchain gaming is more likely to simply remain a niche or be absorbed by large players in the gaming industry who will use it to further their empires, not replace them.
