Games Industry

Blockchain technology and smart contracts in the online games industry

Online games are a very stable segment, with a loyal audience of technically competent users. The market is growing thanks to the development of mobile technology and the proliferation of the Internet. This makes it very attractive to investors.

Application of new blockchain and smart contract technologies can bring the gaming industry into a new era.

According to J'son and Partners Consulting, by 2021 the global games market will be almost $130 billion, an average annual growth rate for 2016 - 2021 of 5.4%.

According to analysts, there are 4 main development directions for iGaming:

  1. Tokenization of online casinos
  2. Players will interact exclusively with smart contracts
  3. New services made available to players because of blockchain technology
  4. Cryptocurrency will replace fiat currency

The advantages of using a blockchain in the gaming industry:

SELLING ITEMS WITHIN THE GAME

The in-game economy is an important part of the business model. The gaming platform allows other developers to create objects for games and sell them via the Game center.

As a result, players receive new unique items (artifacts), developers get a profit, and the gaming platform attracts new players and develops the project. The gaming platform may also charge a small fee for transactions between players.

Since cryptocurrency is not considered a form of property or asset in many countries, it is not subject to any taxes, which reduces the tax burden both for business and players.

The cryptocurrency is not tied to any country, which also facilitates exchange into fiat money. The exchange can be made in any country where such an exchange is permitted; this country may not be a home country of the user.

GAMBLING GAMES

There are differences between online blockchain-based casinos and other typical online casinos: typical casinos need "intermediaries" for each operation, which check all transactions; this is costly and often causes errors.

Online blockchain-based casinos work on a different principle; they use a large number of networked units that perform authentication, rather than an intermediary that verifies entries.
Due to their decentralization, Blockchain casinos are not controlled by a single user. They are controlled by the network, and the transactions are authenticated through the network so the original data such as bets, odds etc. can’t be changed.

Another attractive feature is the confidentiality of blockchain technology: all transactions are completely anonymous, so no third party can track your steps and find out how much is earnt or spent.

A blockchain-based casino is anonymous, including the processing of operations using digital currency. It is difficult therefore, to track the money. In a typical online casino, there is no anonymity, and there is a clear trail of transactions, which could allow tracking.

A blockchain will allow players to view the whole picture, whether the rate, time, amount or bet. Players will have the opportunity to see the work of the online casino from the inside; this will undoubtedly increase the level of trust between all participants.

A blockchain is a register of monetary transactions which cannot be damaged (changed). It can also be programmed specifically for the purpose of stocktaking not only monetary transactions, but virtually all goods that have any value. Day-by-day online casino players will have more confidence in it.

The advantages of a blockchain for online games:

  1. Absolute transparency of rates and the mechanism that determines the winner
  2. Players anonymity
  3. Data integrity and a high level of protection

Before investing in any cryptocurrency project, the investor should make sure that they know all about the platform that will run the game, its resources and capabilities. An important indicator is the speed of transaction processing and the transaction fee. The CREDITS platform can provide an unprecedented processing speed of more than 1 million transactions per second, with low fees. This may be the best solution for the entire gaming industry.

It’s working today

Companies are already proving that online games can become a part of the cryptoeconomy. For example, the Swiss firm EverDream Soft launched three MMO (Massively Multiplayer Online) games, where the transactions are protected by a blockchain, and cryptocurrency is being used as a means of payment.
One of these applications is Project ORB, which allows players to exchange game money into other assets, including crypto-currencies, and then exchange these into fiat money.
In the other two games, Spell of Genesis and Force of Will, players use special tokens called Counterparty, stored in a single wallet for transactions within both games.