What Is Blockchain Gaming?
The vast scope and potential of blockchain technology has attracted the gaming industry over the past few years. In India too, gaming industries are exploring this option.
- Blockchain is a decentralised database that stores information. It relies on technology that allows for the storage of identical copies of this information on multiple computers in a network.
- Blockchain games are online video games that are developed integrating blockchain technology into them.
- It includes elements that use cryptography-based blockchain technologies like Cryptocurrency or Non-Fungible Tokens (NFTs).
- These elements are used by players to buy, sell, or trade with other players, with the game publisher taking a fee from each transaction as a form of monetization.
- Example of Blockchain Game: In 2017, Dapper Labs’ had developed the first ever blockchain game called CyrptoKitties.
- In the game, people can virtually experience the joy of adopting and breeding a cat (CryptoKittie), without taking up the responsibility of bringing one home.
- Each CryptoKittie is a Non-Fungible Token (“NFT”).
- NFTs represent in-game virtual assets that can be owned by players, such as maps, armor or land.
- These NFTs act as asset tags, identifying ownership of the in-game assets, and are stored on the blockchain.
- Being on the blockchain allows the player to have a secure record of ownership of the in-game assets and also gives the assets the ability to outlive the game itself.
- Based on the manner in which the games are designed, it also allows for the in-game assets to be transferred from one game to another.
- It also creates transparency, since ownership records can independently be verified by any third party as well.
- In doing so, it makes in-game assets marketable and creates a decentralized market, where they can be bought and sold by people.