Blockchain and decentralized applications (DApps) are transforming industries. And the world of gaming is next in line for this revolution.
Gaming DApps use blockchain to provide transparency, security, ownership, and new revenue models for players and developers alike.
In this post, we have experts from a renowned dApp development company diving into this emerging technology, understanding what the future holds and how companies can benefit from this seismic shift.
The Rise of Gaming dApps
Gaming is a $200+ billion industry globally. And it’s growing rapidly, expected to hit $363 billion by 2027.
However, despite the staggering numbers, the industry has its fair share of challenges. Lack of ownership rights over in-game assets, centralized control, privacy concerns, and trading restrictions cause endless headaches for passionate gamers.
Decentralized gaming applications aim to fix these problems at their core by integrating blockchain technology. They allow the development of games where players truly own in-game assets, transactions take place on a trustless peer-to-peer system, and smart contracts automate processes.
Benefits of Blockchain-Based Games
Here are the benefits of integrating blockchain into games:
True Digital Asset Ownership
On traditional gaming platforms, players rarely “own” in-game assets. Game companies control them through centralized servers and allow players temporary access or usage licenses.
However, by representing in-game assets as non-fungible tokens (NFTs) on a blockchain, DApps can provide players with true ownership. Players can securely trade, sell, or leverage these digital assets as they wish.
Permissionless and Transparent Economy
Centralized control also restricts the in-game economy in typical games. Players depend on developers to enable trading or transactions. And the process lacks transparency most of the time.
In comparison, assets on a public blockchain are transparent by design. All transactions and interactions are visible on-chain. Players can trade freely on decentralized marketplaces. No central body controls activity.
Better Security Against Frauds
Multi-billion dollar gaming economies make a lucrative target for hackers and frauds. Players stand to lose precious in-game assets and currencies to cyber attacks. Centralized servers controlling the ecosystem present a single point of failure.
However, decentralized games provide better protection against fraud and data breaches. Blockchain’s innate security features offer robust protection against manipulating transactions or assets.
Accessibility through Cryptocurrencies
Millions of users across gaming communities struggle to pay through traditional payment processors.
Integration with cryptocurrency networks allows players to participate using digital coins like Bitcoin or Ether. It opens up gaming to wider, hard-to-reach audiences across verticals.
New Revenue Models
F2P (free-to-play) became the standard business model for almost every Unity game development in the last decade. However, this led to decreased game quality, intrusive ads, and excessive in-app purchases.
Blockchain-based revenue models can redefine industry economics while maintaining sustainability. For instance, transaction fees in crypto games share proceeds between developers and players. Similarly, players may “lend” in-game NFTs to others for a fee, enabling play-to-earn models.
The Mechanics Behind Gaming dApps
Every Unity game development company specializing in blockchain and dApps relies heavily on two key technical concepts – blockchain ledgers and smart contracts.
Blockchain Ledgers
A blockchain represents a public ledger for recording transactions maintained across a decentralized network. These distributed ledgers offer transparency and act as a single source of truth regarding ownership of assets.
Smart Contracts
Smart contracts enable complex gameplay logic and mechanics by encoding instructions directly into code. These self-operating scripts execute actions automatically when predetermined conditions are fulfilled.
Building Gaming DApps – The Process
Developing decentralized games requires expertise across game development as well as distributed systems. The typical stages include:
Game Conceptualization
Like traditional games, defining game logic, mechanics, economics, and artwork is the first step. Development teams sketch wireframes and prototypes to represent the game flow.
Smart Contracts Programming
Based on the game design, developers write smart contracts that enable the creation/distribution of NFTs, execute transactions, render randomness, and manage other gameplay resources. Unit testing forms an integral part of coding.
Frontend Development
The game’s front end provides visual interfaces and connects the underlying blockchain layer with players. Languages like JavaScript, React, and Web3 development frameworks are commonly used.
Testing and Auditing
Extensive testing simulates real-world conditions before deployment. Smart contract auditing at this stage improves security and efficiency.
Launch and Maintenance
Post-launch, development teams collect user feedback to fix issues and release periodic updates. Adding new features and content keeps players engaged long-term.
Infrastructure Platforms
Several blockchain platforms offer tools and infrastructure to build gaming DApps –
- Ethereum – The pioneering smart contracts platform hosts popular crypto games like Axie Infinity and NBA TopShot.
- Ronin – The Ethereum sidechain was designed for gaming and powers Axie Infinity. It improves scalability and reduces costs.
- Solana – Fast and low-cost network that supports rapid prototyping of crypto games.
- BNB Smart Chain (BSC) – Enables developers to build DApps on the Binance ecosystem, offering high throughput and low fees.
- Cardano – Provides extended functionality of smart contracts focused on security enhancements.
- Polkadot/Substrate – Toolkit is custom-built to launch interoperable blockchain platforms ideal for hosting crypto games.
- Wax – Purpose-built and environmentally friendly blockchain network for trading NFT assets and blockchain gaming.
The Future of Gaming dApps
Blockchain games are establishing entirely new paradigms in terms of player control, interoperability, and digital asset economics. While still in its nascent stage, blockchain gaming holds immense potential when it comes to pushing the limits of imagination and creativity.
Here are some futuristic possibilities that every dApp development company should consider:
Player-Owned Metaverses
Metaverses created entirely by the players themselves offer the next frontier for multiplayer experiences. User-generated worlds with player-crafted assets nurture limitless creativity. The blockchain safeguards virtual economies from manipulation. Games like The Sandbox and Decentraland lead this charge.
Seamless Asset Interoperability
Currently, assets often remain locked within specific games or environments. However, the seamless exchange of value between multiple blockchain games can accelerate growth. NFTs that retain attributes and value across multiple worlds remain an exciting possibility.
Mesh Network for Virtual Economies
As gaming DApps grow, they can collectively give rise to autonomous, self-sustaining economic meshes. Instead of closed silos, imagine worlds seamlessly interacting with each other dynamically like nodes of the Internet. Shared tokenomics can enable frictionless value transfer across games.
Transition Towards Play To Earn (P2E)
Blockchain economics fosters new business models like P2E, i.e., players actually earning income from games. Already demonstrated by Axie Infinity, this paradigm shift can fundamentally redefine gaming. Progressive decentralization paves the path for community-owned games.
Bleeding Edge Innovation
Crypto games, free from the limitations posed by legacy centralized systems, allow for unprecedented innovation. Experiments like integrating decentralized finance (DeFi) for community-run casinos or having decentralized autonomous organizations (DAOs) govern gaming guilds onboard millions to blockchain in unique ways.
Bottom Line
Blockchain and gaming blend perfectly like pieces of a puzzle. At the heart of this transformation is the concept of placing power and control back into the hands of players and communities.
And this is just the beginning of unlocking the true potential of crypto gaming. The possibilities remain endless for dApp game development companies willing to reimagine the intersection of gaming, ownership, creativity, and digitization of assets. Exciting times lie ahead!