The global gaming scene is on the cusp of a revolution, with the blockchain in gaming market predicted to expand at a compound annual growth rate of 68.3% from 2023 to 2030. Valued at USD 4.83 billion in 2022, this market is turning the wheels of innovation through decentralised and secure transaction records.
Blockchain has not only transformed gaming experiences but also provided an avenue for businesses and players to transact using cryptocurrencies and Non-fungible Tokens.
Blockchain: Boosting Security and Ownership in Gaming
One of the primary drivers for this explosive growth lies in the demand for a secure, transparent, and decentralised gaming ecosystem. By providing a public ledger of all transactions, blockchain technology introduces a layer of transparency unseen in traditional gaming.
This means players can track ownership and transfer of in-game assets, ensuring transactions are equitable and transparent, and conduct transactions safely without intermediaries. This has proved successful in the iGaming industry as well, especially in web3 lotteries.
Investments and funding in the blockchain gaming industry have seen a considerable upswing, demonstrating faith in the technology’s potential to offer unique gaming experiences and opportunities. This surge was epitomised by Horizon Blockchain Games, which secured USD 40 million in 2022 to expand its operations and product portfolio, further cementing blockchain’s role in shaping the future of gaming.
AI and ML: Game-Changers for Gaming Industry
Artificial Intelligence and Machine Learning are redefining the industry by tackling fraudulent behaviour and enhancing personalisation. These technologies can detect bot accounts or other fraudulent activities while personalising the gaming experience based on player behaviour. Furthermore, they can also provide valuable feedback to improve game design, adding another dimension to the player experience.
However, the path of blockchain gaming isn’t without its challenges. Regulatory constraints imposed by governmental bodies, such as the United States Securities and Exchange Commission and the Financial Action Task Force, can potentially curb market growth. These entities regulate the use of digital assets and have issued guidance that affects how blockchain gaming companies handle financial transactions.
Implications for the iGaming Industry
As blockchain technology continues to make waves in the gaming sector, its influence is likely to reverberate across the wider iGaming industry:
- Enriched Player Experience: by bringing transparency and decentralised asset control to the table, blockchain technology is set to enhance player experience, possibly leading to higher engagement levels and player retention rates.
- Financial Inclusion: Blockchain’s capacity to handle cryptocurrency transactions opens the door to financial inclusion, potentially broadening the player base and injecting fresh vitality into the iGaming industry.
- Robust Security Measures: The implementation of blockchain technology can provide an example of robust, technology-enabled security measures that the broader iGaming industry could adopt to combat fraud and secure player trust.
As the blockchain gaming market soars to new heights, it is expected to bring about far-reaching changes, redefining the contours of the iGaming industry as we know it.