The online gaming industry is growing at an exponential rate due to the emergence of new technologies such as hybrid games, virtual reality (VR), and augmented reality (AR).
Casino operators use these technologies to differentiate themselves from their competitors and succeed in this highly competitive industry.
The global gambling market is expected to reach a value of around $565.4 billion, growing at an annual rate of 5.9% through 2022. And we are told that the projects out there have not scratched the surface on the potential of this rapidly growing market sector. So, why are we not seeing more players and more casinos out there?
There’s a bit of an issue when the term gambling is mentioned. We argue that gaming is principally defined by its interactivity, skill-based play, and contextual indicators of progression and success. In contrast, gambling is defined by betting and wagering mechanics, predominantly chance-determined outcomes, and monetization features that involve risk and payout to the player.
The main difference between the terms is that for gaming the outcome is achieved by skill, not chance, whereas for gambling, the opposite is true. Many gaming activities now include gambling features and vice versa. These activities are referred to as gambling-like gaming and gaming-like gambling.
How can blockchain revolutionize online gaming?
Blockchain technology makes Bitcoin and other cryptocurrencies possible by storing information in a mutually-shared ledger or decentralized databases. Initially used as a payment system by tracking account balances, these can track ownership of property, the terms and status of contracts, and any disputable data.
When the video game industry adopted blockchain technology, video game developers, as well as players who subscribe to their games, gained total power over their virtual worlds. These include for payment of and within games; putting game items on the blockchain; and even completely-decentralized virtual worlds.
Since blockchain games are decentralized, blockchain game assets (digital goods) are distributed among ‘players’. Blockchain games either issue their own token or use an existing token. With well designed token economics and gameplay, blockchain games are starting a new era in the gaming industry.
Blockchain in gaming enables interoperability profiles for players: Crypto traders and investors have the public address that they can use for transactions across different applications. If you create your games on the blockchain, your players can take their unique public addresses from one game to the other if they are on the same blockchain network.
Games built on top of public blockchains have an immense opportunity, and the early incarnation of blockchain-based games are already showing their potential. If you’ve played Stake, FunFair, Bitstarz, Trueplay, Trueflip or other games using blockchain technology, you would agree that gaming on the blockchain is the future of the gaming industry.
Blockchains are open and verifiable, this really helps in betting games as a player doesn’t want to trust anyone. Also, game rules and incentive mechanisms can be verifiable by anyone. This reduces the chances for scams. Using real assets creates real-world incentives, which makes blockchain games different from other platforms. Because of inbuilt incentivization, it’s easier to build games that pay on the blockchain.
What can solve problems encountered with online gaming?
For online gambling, you have to pick a trustworthy platform. Online games can be an unwitting front for malware operations and fraud. You should be careful to ensure you entrust your money and data to a legitimate entity.
Besides, some platforms can charge hidden fees that impact profitability. To counter this, the platform of your choice should be free of such concerns. Foremost, they should offer a fair and fun opportunity to make money.
Noticeably, some online gambling platforms have been accused of being arbitrary in their decision. Some tend to withhold payouts, shut accounts, and even impose shady rates. Here is where blockchain technology plays out its greatest advantage: transparency. The blockchain is an immutable, transparent ledger that can provide an accurate account of all gaming activities.
Those who play games have the advantage of all transactions–including wins and payouts, being recorded on a transparent digital ledger. Many people view casinos that conduct transactions in a black box as inherently unfair.
Blockchain technology helps with credibility and leveling the playfield for such concerned users. The addition of trust eliminates one of the fundamental concerns with other forms of online gambling. Online gambling using the blockchain can also reduce gambling fees and prevent fraud.
Online gaming can be an amazing pastime for anyone. Often, using these platforms is safe because it goes a long way in addressing some of the concerns typical of traditional online gaming. However, there are some fundamental limitations around blockchain games, which need to be solved first.
For now, each new innovation becomes a case study for what experts say gaming will be the first real large-scale use case for blockchain, revamping the industry and making games more immersive than ever. The future of gaming and gambling industries depends to a greater degree on how they navigate the remaining challenges that come with the blockchain.
Still, it is highly recommended that you conduct your due diligence to establish the reliability of a platform before getting started. Finding out that they deploy DLT can give you a great reference point to verify their reliability. If you’re feeling lucky, check out some sites of blockchain-based gambling platforms which includes SP8DE, LetBet, Trueplay, TrueGame, CoinSaga, among others.