Categories: Entertainment

Behind Gaming Innovation: How Do Blockchain-Based Games Work?

Blockchain-based games took the world by storm a couple of years ago, especially during that time when people were home all day long. Axie Infinity, CryptoKitties, and Blankos Block Party are a few of the titles you’ve likely heard of.

These games offer many benefits to players. Some allow you to earn money by completing certain tasks or trading in-game assets, while others feature a solid technological system and decentralized servers that enable people to protect their transactions and assets from cyberattacks.

But, the inclusion of blockchain technology into the already popular gaming industry has raised many questions. First of all, how do these games work? Are they as safe as their developers claim they are? How can you take advantage of these innovative creations?

No matter their genre or theme, blockchain games are redefining what long-time players knew about this industry. Fortunately, this article provides information about their operation, benefits, and opportunities. Read on!

IMAGE: UNSPLASH

What Are Blockchain Games Exactly?

To decipher how blockchain games work, it’s important to understand their essence and objective. So, the first step is to answer a basic but important and intriguing question: What are they?

Simply put, the term “blockchain game” refers to any video game that is built or managed using blockchain technology.

This definition isn’t as precise as it should be, though. These games’ performance will depend on how developers or administrators leverage the blockchain technology.

Those that use cryptocurrencies for user transactions are referred to as “crypto games.” They’re common at online casinos and operate with the most popular digital coins.

For example, if you place a successful сasino 777 bet, you might be able to withdraw your funds using Bitcoin, Ethereum, and so on.

How Do Blockchain Games Work?

Blockchain games owe their name to the technology that defines their operation and nature – blockchain. So, let’s first cover that.

An Easy Definition Of “blockchain”

If you aren’t familiar with the definition of “blockchain,” but want to understand how it works, just imagine a chain made up of blocks.

No jokes, that’s really what it is. Actually, this name refers to the way in which the blockchain stores the data.

Each transaction you make will create a new block that will be linked to the rest, making the entire blockchain grow.

Blockchain uses a distributed ledger, which you can see as just a database that is shared among a computer network’s nodes and synchronized between multiple participants, even if they’re from different locations.

Thanks to this mechanism, all people participating in the network can see the same information at the same time.

You may be thinking that this is too risky, but here’s another important thing: all transactions or “blocks” are recorded in a way that they cannot be altered.

How Blockchain Games Work

Now, you may be wondering how video games can use this technology, and this is something you’ll find below.

Blockchain technology and gaming aren’t blood relatives, but they have become very good friends over time.

Actually, It Has Been A Great Relationship For The Gaming Industry

Blockchain technology offers several things that video games didn’t have before, such as smart contracts, crypto wallets, and non-fungible tokens (NFTs).

Crypto Games

If you want to see an example of this, you can visit a crypto casino (make sure you choose a reliable one). These websites feature many games that are blockchain-based.

Some allow players to make deposits and bets or withdraw funds in cryptocurrencies. Others have created games where users can earn NFTs and easily verify their prizes’ authenticity.

Crypto wallets have unlocked endless opportunities for these game developers, as they provide users with a safe, transparent, and private way to make a transaction, which means they’ll protect their data.

NFT Games

Games that support NFTs have changed how players can use in-game items and resources. For example, you can earn, buy, and use these unique assets in your gaming adventures or simply sell them to collectors for money.

NFTs can hold immeasurable value because there aren’t many copies of the same exemplar out there. They’re typically produced in limited quantities.

Scarcity always leads to higher prices!

And there’s an added benefit. Since the ownership of NFTs is secured on the blockchain, your assets cannot be duplicated. So, you can have a single piece with increasing value that no one could have access to if you don’t want to.

Smart Contracts

Blockchain transactions are supported by smart contracts – yes, that means there’s a “contract” with technological features that even execute automatic functions.

Of course, this also has something to offer gamers. For example, it gives a “trust-minimized” guarantee that the game will always run as it should based on the terms of the contract.

But can something that is “Trust-minimized” be actually trustworthy?

Trust-minimized applications operate based on a somewhat controversial but interesting belief: abundant trust doesn’t necessarily mean that there’s the same level of truth.

So, now, there’s a “cryptographic truth” that focuses mainly on trust-minimization. When it comes to video games, it means some techniques were applied so that the game you’re playing has such a high probability of operating as coded that it’ll be almost guaranteed.

Today, most blockchain games use smart contracts through on-code systems that facilitate in-game items and currency creation and movement, but they also incorporate some off-chain elements.

Play-To-Earn Games

Combining some or all of these benefits offered by the blockchain, play-to-earn (P2E) games have emerged.

Ultimately, they’re games that rely on the blockchain but offer more than just privacy and security – you’ll have the opportunity to win money.

Making an income while playing your favorite games sounds like a dream, but it has been a reality for the last few years.

P2E games use on-chain digital assets that you can use, sell, or trade with other players for things with real-world value, such as money. That means your achievements won’t go unnoticed but will give you actual earnings.

Can Blockchain Technology Really Improve Gaming?

Are you wondering if blockchain technology can improve your favorite titles? Good news! The answer is a resounding yes!

Blockchain technology can do the following:

  • Create equitable economies where players can earn real-world value or boost their efforts through in-game investments
  • Offer one-of-a-kind assets with granted ownership and easy-to-verify authenticity
  • Allow users to keep their identity private when making transactions
  • Promote unique gaming experiences with new forms of interaction
  • Increase fairness, transparency, and security, which is essential for gambling sites, for example
  • And more

Final Thoughts

Blockchain gaming is still in its early stages, but the possibilities are endless. So, it’s safe to say that it’ll be present in the future.

From play-to-earn titles with income-generation opportunities to enhanced security and fair gameplay, this technology has great potential to revolutionize the industry, and it seems it’s on its way to doing so.

The future of gaming is undoubtedly intertwined with revolutionary blockchain technology. And, whether you’re a casual gamer or an amateur, you’ll have many things to leverage as this industry continues to emerge.

Disclaimer: The above references an opinion of the author and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. Invest responsibly and never invest more than you can afford to lose.

IMAGE: UNSPLASH

If you are interested in even more entertainment-related articles and information from us here at Bit Rebels, then we have a lot to choose from.

Ryan Mitchell

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