This article explores the benefits and challenges of using blockchain technology in gaming, including topics such as security, ownership, and scalability. It also examines the potential impact of blockchain gaming on the wider gaming industry.

Blockchains gained widespread recognition as a result of their association with cryptocurrencies several years ago. They are responsible for maintaining a decentralized and reliable record of transactions and are a necessity of cryptocurrency systems such as Bitcoin. The technology facilitates trust, guarantees data fidelity, and establishes security without requiring a third party.

Blockchain experts believe gaming will be the first real application of blockchain, revolutionizing video games and transforming them into immersive experiences. Did you know that blockchain gaming activity increased by 2000% in 2022 over 2021? Based on the DappRadar x BGA Games Report, the blockchain games have also managed to attract an estimated 1.22 million unique active wallets (UAW) in March 2022, accounting for 52% of the total blockchain ecosystem activity.

The blockchain-based gaming industry serves as a connecting link, allowing a wider audience to engage with Web3 and crypto through high-quality, decentralized games on the chain. In addition, gaming dApp development continues to grow as the metaverse environment opens up more possibilities for blockchain games to flourish at the same time.

There’s no doubt that blockchain technology is on the rise today, and blockchain gaming is currently the hottest blockchain-related topic. But understanding the advantages and disadvantages of blockchain-based gaming prior to engagement will help you make an educated decision.

Blockchain gaming is an innovative new concept that could improve games by making them safer, more accessible, and letting players manage their assets more easily. But there are risks as well, such as security concerns, technical accessibility, and high costs for entry, so research the topic before diving in.

Advantages of Blockchain Gaming

Recent reports claim that Web3 gaming is the future of gaming and will redefine it by providing players with ownership of gaming assets as well as the power to make decisions, further delegating power away from central authorities. Here are some noteworthy advantages of blockchain gaming.

True Ownership

Players can purchase in-game items or virtual coins in traditional gaming, however, they are typically stored on game developers’ servers.

Instead of storing these assets on the cloud, blockchain gaming uses blockchains, allowing players to truly own and control their assets. With blockchain-based games, your assets are stored on an irreversible and safe ledger, making them impossible to steal or manipulate.

Game Experience Security & Fairness

Blockchain platforms make use of powerful data encryption techniques, like private-public keys, to secure crypto token exchanges. One could say that fairness is built into the blockchain code, and players can expect a trustworthy and protected gaming experience. This element of trust is further enhanced due to the decentralized nature of these games which assures players that their data will not be misused or stolen.

P2E Model Potential

As a result of the play-to-earn models, players have more time to spend in a virtual environment without feeling guilty about what they could be doing to earn money in real life instead. It may still be too early to tell, but the P2E model may also attract some first-time players, growing the customer base and boosting sales, thereby benefiting all parties.

Governance & Control

Blockchain games provide players with a very real and impactful opportunity to vote. As a result of this trend, games have become more interactive in a variety of ways, such as allowing players to design their own characters and plots — and to actually play them. In the event that a majority, or even nearly half, agree that something should be altered in the game, a change will have to be made. In order to accomplish this, many games feature ‘governance’ tokens as a means of giving players control over the game, similar to AJUN being Ajuna’s primary governance token.

Gaming Asset Prices

The blockchain provides the benefit of affordable microtransactions. By doing so, developers are able to sell their power-ups at a low price while still making a profit. The user can also choose the amount they are willing to pay for online gaming.

Interoperability

Many games are available to players, and they naturally have to create separate profiles for each one, but would it not be convenient if profiles were compatible across games? This is yet another area where blockchain gaming technology can be of assistance and allow users to access and purchase different games and items with ease.

Disadvantages of Blockchain Gaming

There is still much we have to learn and change about blockchain technology. In light of this, several kinks still need to be worked out, namely scalability, high initial costs, and accessibility to the general public.

Technical Accessibility

It can be challenging for players to set up crypto wallets and buy crypto, depending on the type of Blockchain game. It is the developer’s user interface and general programming principles that determine the technical accessibility of a blockchain game. A project’s programming paradigms should be easy to learn, and there should preferably be instructions on how to navigate them, just as we have done here for Awesome Ajuna Avatars.

Barriers of Entry

Among the biggest flaws of blockchain gaming, according to MetaMortals (MORT), is the high entry barrier. In many P2E games that use this model, players are required to purchase an NFT before they can begin playing. There are also popular games that will not let players advance unless they spend money. Although players can accumulate digital currencies during gameplay, the time and effort required make it inconvenient for most.

Limited Quality Games

The other potential disadvantage of blockchain games is the low level of playing ability of some players and the limited selection of available games. The crypto gaming industry is still relatively new, so there are fewer experienced players to compete against, and not many games exist yet.

Crypto Tokens Security Risks

Despite the fact that blockchain technology is highly secure, any platform that holds private crypto tokens or Ethereum keys is susceptible to hacking and other malicious activities. It is also difficult to identify and track these users after security breaches or cyberattacks due to the anonymity of blockchain technology.

In conclusion, blockchain technology is nothing short of miraculous. Gamers are ecstatic to explore the world of blockchain gaming and developers find its potential to revolutionize the industry intriguing, to say the least. Even with risks to take into account, the potential benefits make it worth keeping an eye on for the future.

We hope that you found this list informative and if you did, be sure to check other Ajuna edits to stay up to date with the latest news and become a member of Ajuna’s Discord channel to receive project and special event updates.

About Ajuna Network

Ajuna Network is a Switzerland-based decentralized gaming platform bringing blockchain gaming into the mainstream by integrating GameFi functionality with the world’s leading development engines, Unreal and Unity. Built on Substrate, Ajuna leverages the full potential of the Polkadot ecosystem to provide developers with a modular toolbox to easily add fully-featured GameFi functionalities to their games. Ajuna’s ultimate goal is to create real value for both gamers and developers by providing a fully interoperable decentralized ecosystem for games and virtual goods.

Join our community here: https://discord.gg/ajunanetwork