Top 5 Blockchain Gaming Challenges and Their Solutions
Blockchain Game Development
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May 16, 2023
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3 min read
Table of Contents
Blockchain is changing the gaming industry as mass adoption has been observed. Blockchain, NFTs, and cryptocurrencies have revolutionized the game industry recently.
Is The Blockchain Gaming Trend On The Rise Or Not?
Even with the rising trend of the blockchain in the game industry, some factors still question its role.
According to the recent report shared by Statista, Globally, 75% of surveyed game creators said their studios needed more interest in utilizing blockchain technologies, including cryptocurrency, NFT, and Web 3. Only 2% of respondents claimed that their gaming studios already used such support systems.
The question is, why?
Recently, blockchain in the gaming industry has been facing some vicious challenges that undermine its potential in the games and hesitate the developers to adopt it.
This blog highlights the blockchain gaming challenges while providing critical solutions to broaden the scope of blockchain gaming. Let’s get into them.
Top 5 Blockchain Gaming Challenges and Solutions
Even with the booming trend of blockchain gaming, players face some challenges. Let’s look at them and see how we can solve them.
1: Complexities
Blockchain is a complex term involving several factors, such as crypt wallets, cryptocurrencies, and other blockchain platforms.
The primary purpose of gaming is that it has to be user-friendly and provides ease to the users. At the same time, blockchain gaming fulfills the main goals of gaming due to its plethora of processes.
When players start to play blockchain games, they do not have to sign up for the games only; instead, multiple other platforms need to be signed on by the users. Knowing the nature of the blockchain platform, the player has to sign up on the crypto wallet and buy the amount for the wallet.
Doing all this puts the players through the hassle of gaming, and many players leave it midway, which is one of the many reasons blockchain gaming is facing a central down point.
What can be done to overcome this challenge?
One solution to the challenge of complexity in blockchain gaming is to create a more streamlined user experience.
This can be achieved by integrating various blockchain platforms and crypto wallets directly into the gaming platform, eliminating the need for players to sign up for multiple services separately. Additionally, providing clear and concise instructions on signing up for and using these services can help simplify the process for new players.
By making the user experience more straightforward and user-friendly, blockchain gaming can become more appealing to a broader audience and increase its popularity.
2: Scalability
If we talk about one of the rising and consistent problems in the blockchain industry is scalability.
It might not directly affect gaming, but the blockchain platform's influence affects its performance.
The most common term in the blockchain is trilemma which highlights that three factors cannot be achieved simultaneously: security, scalability, and decentralization. Due to this issue, the players and the game developers face challenges in optimizing their games for user playability and user-friendliness.
How can we overcome this challenge?
To solve the scalability issue in blockchain gaming, implement the first-layer and second-layer solutions. Layer 1 answers help solve the scalability problems, whereas the second layer issues are the protocols required for the off-chain scaling solutions.
To further elaborate, some sub-solutions come under layer one and layer two solutions. Let’s take a look at them.
3: Smart Contract VulnerabilitIes
Smart contracts play one of the key roles in the blockchain gaming industry. However, it is exposed to the vulnerabilities that come with it.
One of the challenges that can affect blockchain gaming is exploiting the code of the game and disrupting the players which can frustrate the players.
As smart contracts hold valuable currency and in-game assets, the vulnerabilities can lead to the theft of game assets which can be extremely unsafe regarding loss of the data.
What can be done to stay safe from the vulnerabilities?
The two most important steps that can be taken to stay safe from the smart contract vulnerabilities depend on the developers. Developers should work rigorously on the smart contract audits while prioritizing the security measures.
4: Regulatory challenges
The blockchain gaming industry faces several regulatory challenges, including uncertainty around the legal status of in-game assets and currencies, as well as potential concerns around money laundering and illicit activities.
There is also a lack of clarity around how existing regulations and laws apply to blockchain gaming, which can lead to confusion and hinder innovation.
Moreover, different jurisdictions may have varying legal frameworks and requirements, creating a fragmented regulatory landscape for blockchain gaming companies to navigate.
Additionally, blockchain gaming platforms may need to comply with regulations related to data protection, consumer protection, and intellectual property rights.
Overall, navigating the complex and evolving regulatory landscape poses a significant challenge for blockchain gaming companies, requiring them to stay up-to-date on the latest developments and seek legal counsel to ensure compliance with applicable regulations.
Overcoming the regulatory challenges in blocking gaming
In order to overcome the above-stated regulatory challenges, here are the give probable steps that we can take:
Consult with the regulators and policymakers of the blockchain gaming companies to get the insight and have a better view of the regulatory policies and its landscape.
Other ways that can be adopted for overcoming the regulatory challenges includes implementing robust compliance programs while building partnerships and industry coalitions that will help in devising policies.
Furthermore, the consumers or players can be educated about the regulatory policies regarding the in-game assets so that they can understand the legal policies and status.
5: Interoperability of Blockchain Games
The rising concern in the blockchain games is interoperability of the blockchain in the gaming industry. This very concept entails the use of in-game assets and other valuable NFTs across the games so that players can leverage them seamlessly. It is one of the important factors in P2E games in order to compete with the upcoming next generation video games.
How to overcome the challenge of interoperability in Blockchain Games?
To address this challenge, efforts are being made to establish common standards and protocols for in-game assets, as well as develop cross-chain solutions that enable interoperability between different blockchain networks.
Conclusion
The rise of blockchain gaming is undoubtedly massive. However, with the incoming challenges, there are chances the trend might go downward. Despite being called the next generation of the video games, blockchain gaming challenges need to be solved at the earliest with the mitigating strategies so that a smooth performance of the games can be achieved and delivered to the players.
Table of Contents
Blockchain is changing the gaming industry as mass adoption has been observed. Blockchain, NFTs, and cryptocurrencies have revolutionized the game industry recently.
Is The Blockchain Gaming Trend On The Rise Or Not?
Even with the rising trend of the blockchain in the game industry, some factors still question its role.
According to the recent report shared by Statista, Globally, 75% of surveyed game creators said their studios needed more interest in utilizing blockchain technologies, including cryptocurrency, NFT, and Web 3. Only 2% of respondents claimed that their gaming studios already used such support systems.
The question is, why?
Recently, blockchain in the gaming industry has been facing some vicious challenges that undermine its potential in the games and hesitate the developers to adopt it.
This blog highlights the blockchain gaming challenges while providing critical solutions to broaden the scope of blockchain gaming. Let’s get into them.
Top 5 Blockchain Gaming Challenges and Solutions
Even with the booming trend of blockchain gaming, players face some challenges. Let’s look at them and see how we can solve them.
1: Complexities
Blockchain is a complex term involving several factors, such as crypt wallets, cryptocurrencies, and other blockchain platforms.
The primary purpose of gaming is that it has to be user-friendly and provides ease to the users. At the same time, blockchain gaming fulfills the main goals of gaming due to its plethora of processes.
When players start to play blockchain games, they do not have to sign up for the games only; instead, multiple other platforms need to be signed on by the users. Knowing the nature of the blockchain platform, the player has to sign up on the crypto wallet and buy the amount for the wallet.
Doing all this puts the players through the hassle of gaming, and many players leave it midway, which is one of the many reasons blockchain gaming is facing a central down point.
What can be done to overcome this challenge?
One solution to the challenge of complexity in blockchain gaming is to create a more streamlined user experience.
This can be achieved by integrating various blockchain platforms and crypto wallets directly into the gaming platform, eliminating the need for players to sign up for multiple services separately. Additionally, providing clear and concise instructions on signing up for and using these services can help simplify the process for new players.
By making the user experience more straightforward and user-friendly, blockchain gaming can become more appealing to a broader audience and increase its popularity.
2: Scalability
If we talk about one of the rising and consistent problems in the blockchain industry is scalability.
It might not directly affect gaming, but the blockchain platform's influence affects its performance.
The most common term in the blockchain is trilemma which highlights that three factors cannot be achieved simultaneously: security, scalability, and decentralization. Due to this issue, the players and the game developers face challenges in optimizing their games for user playability and user-friendliness.
How can we overcome this challenge?
To solve the scalability issue in blockchain gaming, implement the first-layer and second-layer solutions. Layer 1 answers help solve the scalability problems, whereas the second layer issues are the protocols required for the off-chain scaling solutions.
To further elaborate, some sub-solutions come under layer one and layer two solutions. Let’s take a look at them.
3: Smart Contract VulnerabilitIes
Smart contracts play one of the key roles in the blockchain gaming industry. However, it is exposed to the vulnerabilities that come with it.
One of the challenges that can affect blockchain gaming is exploiting the code of the game and disrupting the players which can frustrate the players.
As smart contracts hold valuable currency and in-game assets, the vulnerabilities can lead to the theft of game assets which can be extremely unsafe regarding loss of the data.
What can be done to stay safe from the vulnerabilities?
The two most important steps that can be taken to stay safe from the smart contract vulnerabilities depend on the developers. Developers should work rigorously on the smart contract audits while prioritizing the security measures.
4: Regulatory challenges
The blockchain gaming industry faces several regulatory challenges, including uncertainty around the legal status of in-game assets and currencies, as well as potential concerns around money laundering and illicit activities.
There is also a lack of clarity around how existing regulations and laws apply to blockchain gaming, which can lead to confusion and hinder innovation.
Moreover, different jurisdictions may have varying legal frameworks and requirements, creating a fragmented regulatory landscape for blockchain gaming companies to navigate.
Additionally, blockchain gaming platforms may need to comply with regulations related to data protection, consumer protection, and intellectual property rights.
Overall, navigating the complex and evolving regulatory landscape poses a significant challenge for blockchain gaming companies, requiring them to stay up-to-date on the latest developments and seek legal counsel to ensure compliance with applicable regulations.
Overcoming the regulatory challenges in blocking gaming
In order to overcome the above-stated regulatory challenges, here are the give probable steps that we can take:
Consult with the regulators and policymakers of the blockchain gaming companies to get the insight and have a better view of the regulatory policies and its landscape.
Other ways that can be adopted for overcoming the regulatory challenges includes implementing robust compliance programs while building partnerships and industry coalitions that will help in devising policies.
Furthermore, the consumers or players can be educated about the regulatory policies regarding the in-game assets so that they can understand the legal policies and status.
5: Interoperability of Blockchain Games
The rising concern in the blockchain games is interoperability of the blockchain in the gaming industry. This very concept entails the use of in-game assets and other valuable NFTs across the games so that players can leverage them seamlessly. It is one of the important factors in P2E games in order to compete with the upcoming next generation video games.
How to overcome the challenge of interoperability in Blockchain Games?
To address this challenge, efforts are being made to establish common standards and protocols for in-game assets, as well as develop cross-chain solutions that enable interoperability between different blockchain networks.
Conclusion
The rise of blockchain gaming is undoubtedly massive. However, with the incoming challenges, there are chances the trend might go downward. Despite being called the next generation of the video games, blockchain gaming challenges need to be solved at the earliest with the mitigating strategies so that a smooth performance of the games can be achieved and delivered to the players.
frequently asked questions
Here are three main benefits of blockchain gaming for players:
- Ownership of in-game assets: With blockchain technology, players have true ownership of their in-game assets, which they can sell, trade, or use outside of the game environment.
- Transparency and fairness: Blockchain gaming ensures transparency and fairness in gameplay as all transactions and actions are recorded on a public ledger, making it difficult to cheat or manipulate the game.
- Enhanced security: The decentralized nature of blockchain technology makes it less vulnerable to hacks and cyber attacks, ensuring a more secure gaming environment for players.
Game developers can use blockchain by incorporating smart contracts to create unique in-game items, creating a decentralized gaming platform where players can truly own their assets and enabling secure peer-to-peer transactions.
A blockchain game developer incorporates the blockchain technology in the game development process for creating in-game assets, transparency in the game, and securing game environment. Furthermore, a blockchain game developer works on smart contracts, NFTs, and decentralized platforms to create a full-fledged blockchain game.
The intricacy of blockchain technology, the requirement that players have a cryptocurrency wallet, and the potential for lengthy transaction times are some issues with user experience and interface in blockchain gaming. To ensure that the technology is widely adopted, creators must also make sure that the user interface is clear, simple to use, and open to a variety of participants.
Blockchain helps the gaming industry by enabling true ownership of in-game assets, creating a secure and transparent gaming environment, and allowing for seamless transactions and exchanges between players. It also provides a platform for the creation of decentralized gaming applications, offering new opportunities for game development and monetization.
Establishing a legal framework for blockchain gaming can be done by creating regulations specific to the industry. This can include guidelines for the use of cryptocurrencies in gaming, smart contract development, and data protection. The framework can also involve collaboration with industry stakeholders to establish best practices and standards.
Written By:
Hareem Mohsin
Chief Operating Officer
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