A video game controller surrounded by bitcoins photo – Free Gaming Image on Unsplash
The future of blockchain gaming is promising, with significant growth projections, innovative trends, and evolving player engagement models. With the right technological advancements and community support, blockchain gaming could redefine player experiences and establish a new era of interactive entertainment.
Decentralization and KYC
The future of blockchain gaming presents a unique opportunity to redefine Know Your Customer (KYC) processes through the principles of decentralization and the capabilities of smart contracts. As gaming moves towards decentralized platforms, traditional KYC methods could potentially become obsolete.
For example, a no KYC crypto casino allows players to gamble without submitting extensive personal information. Kane Pepi from Crypto News explains that no KYC casinos leverage the unique characteristics of cryptocurrencies like Bitcoin. Since cryptocurrencies are not considered legal tender in most jurisdictions, crypto casinos can operate without strict KYC requirements. This allows players to deposit, withdraw, and play poker, blackjack, or roulette without hassle.
Instead, blockchain technology can facilitate self-sovereign identities, allowing gamers to control their data and only share what is necessary for compliance. Using smart contracts can be a way to automate KYC procedures by verifying player identities without exposing sensitive information. For example, smart contracts can confirm a player’s information. This decentralized identity solution can create a shared, immutable record of KYC data, allowing players to reuse verified information across multiple games and blockchain-based platforms.
New Monetization Models
As blockchain gaming evolves, a variety of monetization options beyond the traditional play-to-earn model (P2E) could redefine the gaming landscape.
- Move-to-earn (M2E): This new trend in blockchain gaming combines fitness and crypto rewards. M2E games incentivize players to maintain an active lifestyle by offering crypto rewards proportional to their physical activity levels. These games use smartphone sensors or fitness trackers to record activity data, which is securely logged on a blockchain.
- Play-and-earn (PAE): This model sounds similar to P2E, however, the focus is purely on earning rewards while playing. With P2E, players earn in-game rewards and tokens by completing tasks, With PAE, players earn tokens or NFTs simply by playing. The focus is on rewarding the quality of the gaming experience.
- Tokenized ecosystems: Games can create their native token, allowing players to earn and spend within the game. These tokens can also be traded on exchanges, providing liquidity and value to players. PlayDoge ($PLAY), for example, allows players to earn rewards through their interaction with the games and have the option to stake their tokens.
Technological Innovations Shaping the Future
Layer-2 solutions and Web3 technologies are significantly transforming the blockchain-gaming landscape. Layer-2 solutions, such as Polygon and Arbitrum address the issues regarding the scalability and efficiency of networks. This is achieved by processing transactions off the main blockchain (Layer1), alleviating congestion, and reducing transaction fees. For example, Layer-2 solutions can improve gaming experiences for crypto casinos. Players can enjoy instant deposits and withdrawals that are vital in a casino environment.
Web3 Technologies, on the other hand, empowers players with true ownership of in-game assets through the use of NFTs and decentralized marketplaces. This will allow gamers to trade, buy, and sell their assets freely. Web3 also enables community governance models, allowing players to participate in decision-making processes. Additionally, Web3 promotes interoperability between different games and platforms.
Together, both Web3 and Layer-2 solutions can create a more efficient, scalable, and player-centric gaming ecosystem. Both technologies address the limitations of traditional blockchain networks. Both technologies are still evolving and are set to transform the future of blockchain gaming.
Conclusion
While blockchain gaming holds great promise for the future, there are still challenges that need to be addressed to achieve widespread adoption and success. The regulatory landscape around blockchain gaming and cryptocurrencies is still evolving, posing legal and compliance challenges for gaming projects. As technology matures and adoption grows, many expect blockchain gaming to become mainstream just like the traditional gaming industry.