What is Blockchain Technology? How BlockChain is Enhancing the Gaming Industry?

The emerging online world has the term “Blockchain” on boom nowadays. Blockchain technology is one of the most talked topics of the tech town for a decade. So let’s dive deep into the question: What is Blockchain Technology?

A Blockchain can be said to be a growing list of records which are often known as blocks. These blocks are linked using cryptography. Each block is identified by a cryptographic hash of the previous block, a timestamp, and transaction data.

Blockchain technology can be primarily defined as a ledger Gavin records linked and secured using cryptography. This includes building blocks in which all the transactions are noted, recorded, and copied over many nodes, making it very tough to edit or alter without the committee’s permission.

Satoshi Nakamoto is claimed to be the inventor of Blockchain Technology. It was made to serve as the public transaction ledger of the cryptocurrency named bitcoin. The identity of Satoshi Nakamoto is still unknown and considered to be a mystery. The advent of blockchain technology for bitcoin made it the first digital currency to solve the problem of double-spending without the need for a centralized server. Since its invention, Blockchain Technology has been useful in different domains ranging from real estate, gaming to healthcare. 

How is BlockChain Enhancing the Gaming Industry?

The gaming industry is a dynamic platform and a massive revenue generation domain with expected revenue of $143 billion by 2020. The emergence of Blockchain Technology and its integration into the gaming industry can change the dynamics of the industry, thus making it more enhanced. 

  1. Safe and Secure Environment for Game Developers and Entrepreneurs
    Blockchain Technology-enabled platforms to make use of highly influential data encryption technologies such as the private key-public key to secure crypto token transactions. With today’s powerful computing technology, it is impossible to hack these data encryption techniques.

    Blockchain Gaming
    Image Source: TheBlockCrypto

    In addition to this, hackers can’t destroy a decentralized blockchain network as there is no one server which is needed to be destroyed to hack the system. 

    Hackers won’t be able to either delete or modify existing transactions in the blockchain, plus it is impossible to stage a’ Distributed Denial of Service’ (DDoS) attack against these networks. Blockchain networks make use of’ Proof of Work’ (POW) that keeps the system safe and secure.

    Therefore, you are developing your game on the blockchain, which provides a safe and secure environment.

  2. Secure Buying and Selling of In-Game Assets is easier
    With a vast plus widespread interest of mass in cryptocurrencies, secure selling and buying of crypto tokens are more comfortable now. If your game is developed on the platform of blockchain and allows players to make use of digital currencies to buy and sell in-game assets, they possess enough secured means to buy and sell game tokens and do the transactions.

    Secure Buying and Selling of In-Game Assets is easier
    Image Source: Freshradioriau

    E.g., MyEtherWallet provides a good option in the form of a web wallet to the gaming players. It helps them to keep their digital currencies at a safer place when they aren’t using them, with an option of hardware wallets like Ledger Nano S.

    If gamers secure their private keys, their transactions are secure too. However, they have to maintain a disciplined approach to their computer security, like take regular back-ups, avoid high-risk websites, and avoid having too many cryptocurrencies in web or mobile wallet. 

    See Also: What is Cryptocurrency and Bitcoins?

  3. Blockchain increases gamers and developers interaction
    Blockchain is revolutionizing the gaming industry by enhancing open communication between gamers and developers. This is happening because of the developments in blockchain apps, which are driven by a community consensus and not top-down.

    Blockchain increases gamers and developers interaction
    Image Source: Hackernoon

    A gamer or another developer can suggest great ideas to enhance a game. When the whole community agrees, the enhancements can be introduced in the game.

  4. Fraud Prevention due to Blockchain Technology
    Modern cryptographic techniques and consensus algorithms secure blockchain networks from the attack of hackers. Smart contracts that are running on top of any blockchain network can be vulnerable if they have bugs. It makes it possible for hackers to exploit such flaws. An example of such an attack was the Ethereum DAO hack, which happened in 2016.

    Fraud Prevention due to Blockchain Technology

    In the controversial case of the Ethereum DAO hack, malicious parties exploited a loophole in the’ Decentralized Autonomous Organization’ (DAO) smart contract. These malicious agents were about to make off with ETH 3.6 million ($ 70 million at that time), but the transparency of blockchain prevented the attack.

In a public blockchain network, everyone is allowed to read all transactions, plus the Ethereum community discovered the hack soon. They integrated a hard fork to prevent drainage of funds and adequately refunded the money to DAO investors. 

If one is developing a game on the blockchain network, make sure you code your smart contracts correctly. However, a wholly open plus transparent ledger of all the transactions supports in preventing fraud.

Gaming and blockchain are mutual cum natural partners. If one is planning to build that next viral game, consider the advantages of blockchain tech for game distribution, along with other benefits too.