Around 2.7 billion people play games globally, and exciting partnerships between publishers, developers, platforms and distributors have provided the backbone for this success.
However, antiquated systems and inefficiencies threaten the growth of the industry. Thankfully, blockchain technology has emerged as a potential solution.
Blockchain helps restructure crucial elements and address critical issues such as royalty distribution, asset ownership and regulatory transparency.
Streamlining Royalties with Blockchain
Companies have been developing exciting products with blockchain technology, but Microsoft Xbox and EY have unearthed something groundbreaking.
Xbox has been stuck with a problematic system for managing royalties which can cause delays of up to 45 days. It was a big issue for the company and even worse for anyone with limited resources.
Microsoft Xbox and EY have partnered to bring a revolutionary way of managing royalties through blockchain. The game creator’s intellectual property (IP) rights are encoded as smart contracts on the blockchain, allowing Xbox to make its royalty contracts a transparent and automated system.
Smart contracts immediately calculate the royalties after purchase and securely share the real-time financial data with participants.
This overhaul will reportedly cut the time needed to process from 45 days to four minutes. Best of all, creators can immediately access their earnings and forecast future revenue.
Players Can Do More Through Blockchain-based Ownership
Besides helping to introduce a new way of managing royalties, blockchain will also help immerse more players into the game.
Studios such as Metania Games are embedding blockchain technology into gameplay, allowing players to own their in-game assets. Items can be tokenised to enable players to buy, sell and use them across multiple gaming platforms, creating an exciting ecosystem.
Metania Games created a METANIA token, which allows a unified economy across its gaming portfolio. They recently added Pump Game and plan to acquire four more titles into that portfolio, expanding a world where players can enjoy stellar gameplay and blockchain benefits.
The company has set the bar high for immersive and engaging gaming, and the onus is on other houses to leverage blockchain to follow suit.
The Rise of Blockchain in Online Casinos
Blockchain has not just left its mark on the traditional gaming scene. The world of online casinos is also enjoying its benefits.
Online casinos are immensely popular in the Republic of Ireland and blockchain has introduced a new level of trust and transparency.
Blockchain tech now allows gamers to verify the fairness of every spin, roll or hand, reducing concerns about the house having the advantage.
Cryptocurrencies, which also run on blockchain technology, have become a popular mode of payment for online casinos in Ireland, making transactions faster and more secure.
Blockchain also improves the gaming experience for players as they can access their payouts quickly and transfer assets across platforms.
Ireland has been proactive regarding crypto, recognising its ability to change the game and quickly ensuring compliance with EU anti-money laundering laws to create a safe environment for gambling.
Ireland Prepared Well for the Crypto Revolution
Big players such as Gemini, Kraken and Coinbase have established roots in Ireland, looking to take advantage of the supportive business environment.
However, many people have raised concerns about the potential misuse of digital assets for money laundering and fraud. The Irish government listened to those concerns and enacted regulations that follow the European Union anti-money laundering (AML) laws.
There are now stricter reporting requirements for crypto exchanges, limits on cash payments and increased monitoring of heavy transactions.
These changes have massive ramifications for the gaming industry. Online casinos in Ireland must adapt to the new requirements.
However, the new laws will increase the trust between players and regulators, creating a safe environment for blockchain-powered gaming platforms to shine.
Blockchain Technology Spreads Its Wings to Other Industries
Blockchain’s ability to store and manage data while eliminating needless processes and improving transparency has caught the eye of other sectors such as finance, healthcare, supply chain management and insurance.
With these many industries working with blockchain, there are guaranteed to be more exciting innovations that spread to the gaming industry.
Blockchain’s ability to verify digital assets will help the fight against piracy and fraud in gaming, which has become a niggling issue.
Developers can use blockchain to verify gaming licences to ensure only legitimate users can access their products, helping to eliminate software piracy.