Introduction
Web 3.0 :
Use Cases & Top Challenges Of Blockchain Technology In The Gaming Industry
When you hear the word ‘blockchain’ you probably think of cryptocurrency networks, because that technology made cryptocurrency possible. It is a distributed record of transactions that are secured using complex algorithms and cryptography. This makes it much more difficult to corrupt than a centralized database and provides a number of benefits. From food supply chains to online voting systems, it is proving to be a relevant technology in more ways than one. There are several companies that are already using this technology in their day-to-day decisions. Distributed Ledger is here to stay, as it is reshaping everything from gaming to the healthcare industry.
Use cases of blockchain in various industries:
1. Banking and Finance
Here are some of the use cases in the banking and finance industry:A. Secure Payments
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- Safer, faster, reliable transactions
- 24/7 access to your account information
- Easier to send and receive money globally
- Secure platform for exchanging value, using cryptography
- Transactions are recorded on a public ledger
- Transparent transactions to every participant on the network
- No fraud or collusion among participants in a transaction
b. P2P Transactions:
People have lost money by transferring it to the wrong accounts. Digital ledger has the potential to revolutionize peer-to-peer payment methods on a global scale. Digital wallets are more secure than any other method for storing money, due to their decentralized nature and the use of encryption. There are several applications of blockchain technology in the banking and finance industry.
C. Clearance and settlement:
The current financial infrastructure is outdated and inefficient and has to deal with payment orders, and there is so much paperwork involved. Blockchain can help with:
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- Improved current financial infrastructure
- Increased efficiency of the settlement process
- Making the trades traceable and immutable
- Enables banks to settle trades on a public blockchain for transparency
- Saves time as well as administrative costs for banks
- Audit and reconciliation costs can be reduced to $0.
- Fast and trackable transfers
- Exchanges are checked in a more transparent way than the current protocols
D. Identity verification:
The Finance industry is under continuous attack by criminals and hackers. In order to mitigate risks, blockchain technology can be used for innovative solutions in the banking process. Let’s have a quick look at them:
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- Improved customer experience
- Increased transparency
- Improved data security and privacy
- Enable new business models
- Proven identity and ownership of assets
- Record of exchanged information
2. The Gaming Industry:
Blockchain technology has far-reaching consequences for not only banking and finance but also for the gaming industry, it also helps developers to create new functionality for their games. Right now, it is an excellent choice for the gaming industry. There are many use cases of blockchain that are listed below:A. Ownership of In-game assets through NFTs:
Through digital assets, this technology is already allowing gamers to sell virtual goods while they are still in the game. It also enables gamers to exchange them for other valuable items. The gaming industry is now at the forefront of blockchain implementation, which allows gamers to enjoy a safer experience while making in-game assets digital assets that are worth real money. You can also consider in-game assets as a type of NFT that can also be sold afterward. Therefore, you will never have to worry about losing your game assets-even after the game is over, your assets will still be yours.
B. Increasing the security of the gaming market:
Blockchain reduces the inevitable technical problems that prevent games from running smoothly with cryptocurrency integration, such as transaction fee issues. As for the security of user data, the benefit of using it goes far beyond its strength in decentralization and effective data encryption measures. The Blockchain’s smart contract system also allows easy implementation of various anti-cheating mechanisms. These security measures will provide players with a secure environment, almost completely eliminating the threat of hacking or tampering within the game.
C. Decentralised Marketplace:
Blockchain solves the issues that are present in centralized marketplaces. Decentralized marketplaces create the digital scarcity that makes items unique, and it allows players to truly own their items, which are now immortal and cannot be replicated by the game developer – meaning that they will always hold value. Players can also sell their rare items for in-game currency or cryptocurrency, which is an exciting way to earn additional income while playing games. This helps developers earn more money too – a win-win situation for everyone involved.
D. Multiverses for gaming:
Decentralized Multi-Universe enables gamers to connect and compete via multiple games and marketplaces. This is a revolutionary platform that envisions a multi-game ecosystem where gamers can trade their assets generated from any game they love. Gamers can also create or join teams, or clans, and compete against other teams or clans. These clans can be linked to real-world locations in order to make the competition more relevant and meaningful.
3. Healthcare Industry:
The current process of getting healthcare is long and tedious. All of this results in the non-effective handling of the patient. Blockchain can help the healthcare industry in numerous ways. It can solve issues like drug traceability and a transparent supply chain. This can increase patient safety and make healthcare more effective. Some of the use cases of blockchain in healthcare are listed below:A. Supply-chain transparency:
Supply chains are complex, but it enables new and interesting dimensions of transparency in the supply-chain process.
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- Instantaneous transfer of payments to suppliers without costly intermediaries
- Smart contracts could expedite ownership transfer and ensure compliance with safety requirements.
- Enables new and interesting dimensions of transparency in the supply-chain process.
- Providing traceability and visibility for consumers, suppliers, and manufacturers.
B. Patient-centric health records:
The healthcare industry is being affected by the inability to share data between systems, and this is a huge problem. Data siloes are causing medical errors that cost lives.
Blockchain enables healthcare sectors to:
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- Decentralized, and secure medical record system
- Store highly sensitive information in a distributed manner
- Reduced costs
- Reduced errors
- Open-source decentralized identity
- Data integrity protocol
- Increased security and more accessible (to all)
C. Verification of medical staff:
The lack of transparency in the healthcare industry is a primary pain point. Medical staff verification is complex and time-consuming.
Blockchain technology has the potential to enable the healthcare sector in the following ways:
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- Verifying the credentials of medical professionals
- Provides verifiable and transparent documents
- Transparency
- Fast, easy, and secure medical staff verification
Challenges of blockchain in the gaming industry:
Blockchain is a trendy solution to some of the most obvious problems in gaming, for instance, gambling regulation and data protection. The gaming industry is still not mature with no regulatory frameworks, no standardization, and sometimes even a lack of trust from participants (players/developers). There are significant challenges standing in the way of widespread adoption. Some of the possible challenges are listed below:1. Multi-accounting:
Challenges:
Multi-accounting is a growing problem in the blockchain space. It’s definitely not uncommon for a player to own two, three, or more accounts at the same time in a web3 game. The solution to this is, Instead of asking for specific Proof of humanity games could also require the player to have performed certain actions on-chain and consider it proof enough. The one player == one human rule could become one player == one address with a lot of actions rule.
Solutions:
There are many ways to challenge the humanity of players in a game. This can range from simply asking for your player to verify their identity via PII (Personally Identifiable Information) to connecting facts about players’ life patterns and what they do on a daily basis. Whatever form it comes, there needs to exist a system where your players can challenge another given player’s humanity. This is how you identify bots and fraudulent entities. Bloxbytes is a blockchain development company that is providing you with a solution that allows the human players to define how human the other given player is or isn’t.
2. Key Management:
Challenges:
With great power comes great responsibility. Blockchain technology puts this responsibility in the hands of the users via their private keys. Users are the only ones that can use their keys and they are the only ones that can authorize a transaction. This presents a challenge for game developers who will want to create on-chain games with players performing more actions than just buying cards or simply using an in-game marketplace. This has led to the creation of a variety of different “modes” for interacting with smart contracts.
Solutions:
Rather than requiring the player to sign every single transaction, they could use a smart wallet over which they have total control and give the right to other addresses to perform actions on their behalf. For example, Bloxbytes serves the gaming industry by giving services of crypto wallet and smart contract development. This ensures that the player can only use the NFT for game purposes and can’t steal it from the owner. Smart contracts would benefit from having “user settings” on-chain that would allow a user to permit someone else to use a contract on their behalf.
3. Cheat-to-Earn:
Challenges:
Current anti-cheat programs are not suited for a play-to-earn economy. If your goal is to make legit players quit the game, that’s exactly what you want. You need an anti-cheat program that makes cheaters’ life hard and legit players feel comfortable enough to stay in the cage.
Solutions:
A decentralized anti-cheat system could help make the gaming world a better place. It can reward referees to verify if a game has actually taken place and that a player has won without cheating. Bloxbytes supports a decentralized anti-cheat system to prevent cheaters within the game.
