Blockchain technology has the potential to dramatically change many different industries, and one of them that is changing is online gambling.
We are witnessing a revolution happening right in front of us as paid and free models give way to a new one: play to win. We are also seeing the real-time transformation of online gambling into a more honest, fair and transparent industry. Let’s dive deep into how blockchain technology is changing the $200 billion global gaming industry.
What is the play-to-earn model?
The play-to-earn model is a relatively new gaming model, and blockchain technology is accelerating its adoption. Previously, players purchased the game, subscribed monthly, or funded the game through in-game purchases, but now with the blockchain-based play-to-earn model, players make micropayments of fractions of a cent to make moves such as punching opponents. By completing certain tasks such as finishing in game leaderboards or winning tournaments, players can also win gamehence the name play to win.
Play-to-Earn games are not just a fantasy or a hypothetical concept. There are several great games available right now. For example, we learned about Saber Games’ Legends at War during the recent Polish blockchain gaming webinar, and regular CoinGeek readers know all about BSV’s most popular game, CryptoFights. How fast do they catch up? In the aforementioned webinar, we learned that play-to-earn games already compete with local wages in some developing countries.
The play-to-earn model has the potential to disrupt the entire gaming space. Players can adopt a “pay-as-you-go” model that allows them to earn money, while developers gamers can earn micropayments on every game interaction, regardless of the outcome. How small can these micropayments be? On the BSV blockchain, payments can be processed for fractions of a penny, so playing these games need not be expensive, but at the same time, players and developers could earn fortunes via millions , even billions of micropayments. in their wallets.
It’s still early days for the play-to-earn model, but the game only gets big disruptions every ten or two years, so it’ll be exciting to watch that unfold. If this is successful, older models may go the game cartridge or CD-ROM path as gambling games to win take over the world.
How can micropayments transform games?
The play-to-earn model as we know it would not be possible without the true innovation of Satoshi Nakamoto: micropayments. These tiny payouts help disrupt the revenue models that have dominated the game for so long.
While we’ve already covered how players can earn micropayments by finishing on game leaderboards, micropayments have the power to disrupt gameplay in several other ways that aren’t immediately obvious. For one thing, think about how games are made today. Big company X hires a group of developers, pays them a fixed salary, builds a game, and then makes billions. A few key employees get a bonus, but otherwise the shareholders get the money. Sounds familiar, doesn’t it?
Micropayments can change this pattern because payments can be split into dozens or even hundreds of directions. Suddenly, the graphic designer, audio technician, game coder, scriptwriter, and everyone else involved can earn ongoing payouts every time players interact with the game. To see how it works in real life, visit the Haste Arcade , play in the penny league on any game and watch how dozens of players who finished above you in the leaderboard receive a slice of your penny (or vice versa). Real small payments are finally possible!
Micropayments can transform the game in other ways as well. In addition to allowing players and developers to earn money in new ways, they allow game movements to be recorded on an immutable public blockchain. Imagine how fairer and more transparent eSports tournaments will be when every move is recorded in a public database that no party can alter. Micropayments are the price of such transparency; someone has to pay the miners/transaction processors to write the ledger entry.
Games will need to be built on a scalable blockchain capable of true micro and nano payments for all of this to be possible. Currently, Bitcoin SV is by far the leader.
Do NFTs play a role in game transformation?
There’s been a lot of buzz about NFTs over the past year, with Bored Ape JPEGs being snapped up by famous artists like Justin Bieber for millions and artists like Beeple selling digital collages for $69 million. NFTs are all the rage right now, but few have stopped to consider their true usefulness.
Under the radar of all the hype and buzz, NFTs are changing the game in several ways. For example:
- Players can win and win valuable NFTs which they can keep or sell. For example, in CryptoFights, players can forge and earn valuable weapons and armor.
- Some NFTs may entitle players to benefits. For example, they can unlock access to an exclusive game tournament or a hidden level.
- NFTs can make gaming assets much more easily tradable. It is well known that “skins” in games like CS:GO are traded on external markets. With NFTs, all of this can be done in games, and ownership can be tracked and transferred on the blockchain.
These are just a few ways NFTs can alter existing game patterns. As things evolve, players and developers will come up with countless alternative use cases that are beyond the scope of what we can imagine today.
Make the game more transparent
Transparency is always a good thing, and that’s especially true when it comes to gaming tournaments. FYX Gaming CEO Adam Kling has repeatedly mentioned how eSports tournaments are riddled with accusations of cheating, but since the data exists on servers only accessible to game developers, it can be difficult to prove this. what happened and who was at fault.
This changes when games are built on scalable public blockchains like BSV. Remember how we said above that micropayments pay miners to write transactions on the blockchain? Consider how this will change those disputes over cheating in esports tournaments; rather than players shooting around with unprovable accusations and being frustrated when nothing is done about what they consider to be a criminal act, third-party auditors or anyone with analytics tools will be able to extract the data from the blockchain and prove exactly what happened and when. In other words, cheating allegations will finally be provable or falsifiable.
Are you beginning to realize what public blockchains like BSV are? It’s not just about payments; While they evolve, they are also powerful data management tools that usher in a new era of transparency across all industries that rely on them. Gaming will be transformed for the better when it moves to blockchain.
Responsible gambling on the blockchain
No gambling discussion would be complete without covering real money gambling. Every day, millions of gamers around the world have fun playing slots, card and table games, and other games like dice and coin tossing on apps like Peergame.
Unfortunately, some gamers get addicted to these games. This can lead to all sorts of problems such as financial difficulties, relationship breakdowns, mental health issues and worse. According to a study conducted by the British government, 0.5% of the population can be classified as problem gamblers, with 3.8% being “at risk”. In an effort to combat this, many iGaming operators have embraced the concept of “responsible gaming” to protect players. Ideas like self-exclusion and daily limits have been introduced in the industry, but they don’t go far enough and they aren’t 100% effective.
With blockchain technology, it is possible to create all kinds of new tools to improve responsible gambling and protect vulnerable players. Again, it’s about storing and sharing data efficiently. When gaming operators can all access the same data, it is easier to identify these players and intervene by blocking further payments when they have reached their self-imposed limits or alerting other operators in real time. that they display erratic behavior. .
Responsible gambling solutions are already being developed by nChain and others. Check out this discussion for more information on how blockchain-based tools and solutions will turn gambling into real money.
Learn more at the BSV Global Blockchain Convention in Dubai
If this article has piqued your interest in how blockchain technology and micropayments can transform the gaming industry, the best way to learn more is to hear from the experts at the BSV Global Blockchain Convention in Dubai. It will run from May 24-26, and if you can’t make it in person, you can still attend online. We hope to see you there!
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