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Blockchain Use Case in Gaming Industry

Blockchain in gaming industry is the next big thing. Blockchain-based games have been accessible for a few years now. However, the number of games on the market has recently expanded. Because of this technology, the creation of decentralized gaming apps is now conceivable.

According to the most recent Technavio report, the global gaming market is expected to grow by $125.65 billion at a CAGR of 12.40% from 2020 to 2025. The introduction of blockchain technology into gaming, apps is a critical component driving the market's growth.

Once it was established that cryptocurrency wasn't the only blockchain application, it was hailed as a disruptive technology. Today, its potentially game-changing uses are more hype than reality, according to many. In contrast, gaming. The gaming business will be the first major use case for blockchain, according to experts, who predict a tidal change in the sector. Blockchain technology has the potential to fundamentally alter the gaming business, challenge the dominance of the console market, establish a multiverse, and make games more immersive and boundary-pushing than ever. Gaming's ability to overcome the remaining obstacles will serve as a case study for other businesses considering adopting the technology widely.

What is Blockchain Gaming?

It’s an approach where the video game digital items (collectibles, guns, cosmetic skins, etc.) are real-world assets such as stocks and bonds in the form of non-fungible tokens (NFTs). Since NFTs are stored in a public and decentralized ledger, the blockchain, they give consumers the "right to send" and put the NFT under the control of their virtual assets. Blockchain gaming enables interoperable player profiles. Cryptographic traders and investors have public addresses that can be used to trade between various blockchain networks. Building games on the blockchain allows players to carry their public addresses from one game to another.

Examples of Blockchain Games

Blockchain-based online multiplayer games have unleashed the potential of distributed ledger technology as the underlying infrastructure. This guarantees the uniqueness of the various assets in the game and maintains the value proposition. One of the most successful examples of modern blockchain games is CryptoKitties. Launched in 2017, CryptoKitties will allow players to buy, breed, upgrade and trade virtual kittens on the Ethereum blockchain. After the great success of CryptoKitties, several blockchain developers have come up with similar concepts and projects, including CryptoBots. CryptoBots is another multiplayer online game where you can buy robots to improve your skills and compete with other players. With CryptoKitties, you can create unique virtual kittens. Similarly, CryptoBots allows you to create robots with your own skills and abilities.

There are usually two ways to apply blockchain in gaming industry.

The whole game is based on blockchain. Blockchain developers can run games from the blockchain instead of relying on a centralized server. The game can be run on a centralized server, but there is a blockchain-based platform for managing tokens, digital currencies, and collectibles.

An example of the first type is Taurion, a game based on the XAYA blockchain. The whole game is based on XAYA, and there is no centralized server. In short, running a massively multiplayer online role-playing game (MMORPG) on the blockchain helps developers and players overcome various limitations of centralized servers. Soccer Manager Elite is another blockchain-based game on XAYA. In this game, you can own, organize and play online football.

A few other examples of blockchain-based games include:

  • Decentraland (virtual reality platform)
  • Cryptokitties
  • Gods Unchained
  • My Crypto Heroes
  • Cheeze Wizards
  • Crypto Space Commander

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Today, most online games follow a centralized model. All relevant data is stored on a server that the game administrator completely controls. Data typically includes account information and server history, recording and storing all events and in-game assets (collections, items, cryptocurrencies, etc.) collected by the player. A single company owns the database, so players do not have actual ownership of their accounts and items. Centralized servers also have many limitations and vulnerabilities, including:

  • Server breakdown resulting from technical problems
  • Hackers attacking the system
  • Shutting down during gameplay
  • Baseless banning of accounts
  • Lack of accountability in in-game transactions
  • Unfair tweaking of the game economy to the detriment of players

Given that most online games use this central server model, much of what happens is in the hands of centralized gaming companies and administrators.


Some major trends in the gaming industry have only been technically made possible by the advent of blockchain. These are asset tokenization, NFT, and play-to-earning [encryption] models.


Blockchain development technology has brought about the tokenization of assets. In other words, digital and physical assets can be tokenized and sold in the market. This also applies to the gambling industry. Play to sell assets such as skins, coins, diamonds, weapons, tools, and even characters as tokens. The player who purchases them becomes the item's owner, and all sales and ownership transfers are recorded and securely stored on the blockchain. In addition, each player can track the usage of digital assets and verify their authenticity.

NFTs and digital collectibles

The NFT phenomenon has attracted the attention of many celebrities and athletes. Blockchain is the technology that made it possible to introduce this concept. These are blockchain-based non-fungible tokens that represent unique in-game items. Players can buy, sell, and collect but cannot duplicate or exchange these tokens. NFT games are not new. The NFT epidemic started in 2017 with a blockchain game called CryptoKitties. Players can buy, breed, collect and sell digital kittens with unique looks and features here. It sounds like a 21st-century Tamagotchi version that kids in the 90 are loved.

Axie Infinity

Another blockchain game, Axie Infinity, is about to step on a cat's paw. Axie Infinity's daily active user base went from 30,000 in April 2021 to over 1 million in August. According to the July 2021 Blockchain Game Report, Axie has become the most valuable NFT collection, with over $ 1 billion in trading volume. In this game, players buy, breed, exchange, and fight competitions using pets called "axies." Another interesting news is that an American company called Polygon recently launched Polygon Studios. The studio has $ 100 million funding to build NFTs for the gaming market and assist developers. NFTs and blockchains have many benefits, but digital trading games are probably one of the most common use cases.


This heading introduces some of the most common ways blockchain technology can impact the gaming industry.

Real ownership

As mentioned earlier, in blockchain-based games, players have permanent ownership and full control over the in-game assets. Each asset is typically represented by a unique non-fungible token (NFT): the ERC-721 token. The assets can include game cards, skins, gear, and characters. However, you can link to all blockchain tokens managed by the distributed network, regardless of asset type.

Decentralized marketplace

Gaming companies can control the drop rate and profitability of their games. You can also lock or bind in-game items to make them non-tradeable. In contrast, games built on blockchain networks allow the creation of decentralized marketplaces. Doing this eliminates the need for trust between players while providing censorship resistance. All players are free to buy, sell and trade in-game assets peer-to-peer.

Streamlining payments

Blockchain and smart contracts possess specific capabilities that can cut costs and hasten financial transactions. They can facilitate all kinds of payments, not only for transactions between players (peer-to-peer) but also for transactions between players and developers.

Gaming multi-universe

Blockchain and smart contracts possess features that can reduce fees and speed up financial transactions. They can facilitate all kinds of payments, not only for transactions between players (peer-to-peer) but also for transactions between players and developers.

Fair playing ground

Depending on the implementation, blockchain allows the creation of open-source, decentralized, and transparent game servers. In such cases, the game's mechanics can only be changed if most of the network votes for it. In addition, the decentralization of the blockchain prevents hackers and scammers from interrupting the game because there are no single points of failure.

Unlimited gaming

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The following are some benefits of Blockchain gaming industry:

  • Asset ownership
    Blockchain can streamline and protect ownership of in-game items. This is one of the most important NFT use cases today. Each asset is typically represented by a unique non-fungible token (NFT): ERC-721 token. Irrespective of the kind of assets, things of value can be linked to blockchain tokens managed by distributed networks.
  • Transparency
    Blockchain developers can create an independent economic system in-game. Due to the decentralized structure, some transparency is an additional benefit. Giving power back to the people Including blockchain makes the game more democratic. By introducing voting rights according to the number of tokens, developers can make decisions that players find attractive. A gaming company must partner with blockchain technology experts to integrate blockchain development services and build custom blockchain solutions to create a more secure and transparent in-game economy.
  • Better payments
    Lastly, games can reduce transaction time and costs by using the blockchain instead of centralized servers.

Limitations of Blockchain in Gaming

Although blockchain technology has opened up a whole new horizon for the gaming environment, there are still important challenges to overcome. Some of them are:


Scalability is one of the key limitations of blockchain, as centralized networks tend to be much faster than blockchain. Blockchain tends to be much slower than centralized networks and can prevent games from rolling out globally.


Demand for blockchain games is significantly lower than for traditional games due to the scalability issues faced by developers.


Not all blockchain-based games are completely decentralized. Some use ERC-721 or other blockchain tokens, but they run on a central server. Therefore, blockchain games are only sometimes decentralized. Some games use a central server to distribute tokens.


When it comes to maintaining blockchain games, developers often need help to raise money.


Due to the small group, blockchain game developers find it difficult to compete with large centralized game developers.

Substitute products

Small independent blockchain developers mostly create blockchain games. These teams may struggle to compete with giant gambling companies in the centralized world.


Blockchain can reshape the game world as we know it and could mean the end of the exclusive rules of a few game publishers and developers. Online gamers tend to weigh digital items sold as in-game tokens against traditional purchases that are not worth their money. We may have to wait a few more years before blockchain becomes widely used in games, but in the future to Blockchain gaming, we can expect a more transparent, safe, and democratic gaming environment. Ethereum remains the most used blockchain in the game. Meanwhile, blockchain app development companies and developers are developing their platforms, protocols, and networks specifically designed for NFTs and crypto games. These are Flow, WAX, Polygon, Enjin, and so on. To conclude, a hire blockchain developer working with others and a group of developers will shape the gaming industry's future. As a result, cryptocurrencies and video games can potentially transform the gaming industry in many ways.

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