Limitations Of Blockchain In Gaming

Global blockchain spending has grown massively over the past few years. The total spending on blockchain solutions was just under USD$1B in 2017. However, that increased rapidly within the following 5 years and is expected to USD$19B by 2024.

These statistics show that more organizations are investing in blockchain technology. This trend can be attributed to the benefits blockchain brings to the table. 

However, every technology has limitations, and blockchain isn’t an exception. This article will focus on the downside of blockchain in gaming. Keep reading to learn more. 

What is blockchain?

Blockchain technology is a database mechanism for storing and sharing data within a given network. This decentralized system stores transaction records in blocks of data. 

The blocks are linked in a chain and are chronologically consistent. As such, one can’t modify or delete any part of the chain without consensus from the rest of the users. This feature makes the blockchain technology ideal for creating an unalterable ledger for tracking transactions.

How is blockchain used in gaming?

The gaming industry is among the main beneficiaries of this ever-advancing technology. Today, more people are shifting from traditional gaming to Web3-based games hosted on the blockchain platform. Some of the most popular games in this category include Nine Chronicles, Mist, Sunflower Land, and Gods Unchained.

Blockchain is slowly revolutionizing the gaming industry, given its unique features and benefits. Players can now engage in their gaming activities in a decentralized and innovative way. This system gives players the power to enjoy and control the game rather than having a central regulatory authority.

One of the primary purposes of blockchain technology in gaming is to enhance play-to-earn games. These are online games that allow players to earn real money while playing. But how does that work?

The digital in-game assets like armor and weapons you win in these games come from non-fungible tokens (NFTs). You can use these weapons in a different game, store them for future use, or sell them to other players. Whatever you get from this in-game trading can be converted to fiat currency and transferred to your bank account.

Limitations

Although this technology has grown tremendously over the past few years, there’s still much to do. Here are some of the limitations of blockchain gaming:

• Lack of scalability

Scalability is an essential factor in gaming. Many video game enthusiasts are always ready to test and enjoy new games. Without enough scalability, these platforms will struggle to accommodate all these players and still operate at their optimum level.

Unfortunately, that’s the case with blockchain in gaming. The technology can complete only a limited number of transactions every second. So, as more people initiate transactions, the network is likely to be congested, resulting in long processing times. 

This is a huge limiting factor for gaming platforms with high traffic. Slow server response can negatively impact the user experience of online multiplayer games. If the issue isn’t addressed, more people may be forced to shift back to traditional gaming systems.

As you’d expect, several proposals have been tabled to solve this problem. Among the solutions suggested is the creation of specialized blockchain networks specifically for gaming. Although this would be a great idea, these networks are yet to be introduced in the mainstream market.

• Regulation is still an issue

Blockchain gaming is still a new phenomenon, which makes it difficult to pinpoint the exact laws that apply to it. Of course, everyone in this sector expects blockchain games to be held to the same laws applied to all video games. 

However, the fact that blockchain gaming is, in one way or another, related to cryptocurrency complicates everything. Remember, players here are allowed to sell or buy in-game assets using digital coins. 

Therefore, it won’t be a surprise if some jurisdictions hold these games to the laws regulating the crypto industry. If that happens, then onboarding in some regions will be an issue. For instance, countries like the United States have strict laws against crypto gambling. Therefore, players from such nations may not be able to enjoy the full benefits of blockchain gaming.

• Simplicity of games

Video games have advanced in the 21st century because of modern technology. With developers improving every bit of gaming graphics, video games today are pleasing to the eye. 

Unfortunately, the same can’t be said about the majority of blockchain games. Of course, this doesn’t apply to all blockchain games, but it’s a limitation worth noting. Most of the games here are too basic to appeal to the modern gamer. Nevertheless, this area is likely to be considerably improved soon. 

Conclusion

Blockchain technology is quickly becoming popular among modern gamers despite being a new phenomenon. However, this technology isn’t short of limitations. Lack of scalability, simplicity of games, and regulatory issues are among the main factors worth noting. Given the investment in the blockchain gaming industry, you can expect a solution to these limitations to be found soon.