By Ravi Chamria
While it is a fact that in the last 1 decade gaming has become so big that it has dwarfed Hollywood in terms of market capitalization, it would not be an understatement to say that accessibility of monetization for all, enhanced gameplay, absolute transparency must be improved from the ground up so as not to dilute its absolute dominance.
Blockchains have stepped in as a technology emancipator, empowering the sector and helping overcome archaic challenges to keep the needle moving.
Monetization of game and limitation of barriers
Professional gamers have built invisible walls through their expertise in their gaming profession that salaries, sponsorships, live streaming, donations and other income heads revolve around them. So, when average or newcomers to gaming try to enter the space, they face an existential crisis under the influence of professional gamers.
To earn their skills, they have to catch up with their professional peers, aka pro gamers with years of experience under their belts. Therefore, there is a lot of catching to do, creating deep crevices on access. The club-based game model in traditional Web 2 games is largely closed to startups to aid monetization.
Blockchains are designed in such a way that there is no concentration of power in the hands of a few corporations who reinvent the game economy through their whims and fancies. Hence, free participation is simple. Players can tap P2E or Play to earn models to earn in-game time.
Furthermore, by selling in-game assets or spending hours within the game environment extracting NFTs, they can extract other revenue streams from the game environment. In the last two years, as many as 1.22 million new wallets have gone live, taking advantage of this efficiency to make money by playing games.
Own the In-Game environment, reduce centralization
One of the biggest fears of those who take games professionally is the dilution of control. In the event that the gaming ecosystem dissolves or the gaming company seizes their assets, they can lose their earnings at any moment.
By introducing blockchains, players have full control over their assets and can operate in a similar game environment and monetize their assets through sale or utility. Additionally, smart contracts can induce true sovereignty and control over their assets through royalty schemes that can help them truly own their efforts, regardless of the game environment where those assets reside. Therefore, ideally to reinforce ownership through a trustless code-based function instead of a platform-controlled promise.
Restoring transparency, building trust
eSports has been mired in controversies involving bonus abuse, multiple accounting, affiliate fraud, account takeovers and refund fraud. These factors have slowly and steadily eroded the trust element of esports. The blame goes to the lack of verifiability and transparency.
There is no technology stack in place that can help participants verify if someone has won the lottery or if they are a trust ace. Only data can protect against such abuse, but the current state of esports is wildly disorganized. As a result, reports have shown that 1 in 10 online games or e-sports are frauds in the making. Blockchains increase the sharing of information, and its noble consensus restores security while maintaining transparency.
Blockchains power the future of gaming
Games require a twin approach where gameplay must be simple and cost efficiency must not be diluted. Since the blockchain consensus mechanism is distributed, it weighs down the scalability that application chains, rollups, and sidechains solved from scratch. In terms of simplifying the user experience, the EIP-4337 upgrade, which introduces account abstraction, mirrors the Web 2 gaming experience in Web 3. Over time, as rollups and sidechains continue to mature, they can scale and interoperability strengthen to build a comprehensive gaming ecosystem on top of blockchains to ensure maximum extractable value.
The author is founder and CEO, Zeeve
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