Decentralized Gaming Applications

With interest in gaming rising and lots of related possibilities yet to be realised, gaming colliding with blockchain technology was inevitable.

## **What is Decentralized Gaming Applications**

Decentralized Gaming Applications (DApps) are gaming applications that are built on decentralized technology, such as blockchain. These gaming applications operate in a decentralized and trustless manner, where all game data and assets are stored on a blockchain network that is maintained by a distributed network of nodes instead of being managed by a centralized entity.

DApps offer several advantages over traditional gaming applications, such as increased security, transparency, and user control over game assets. Since DApps are built on blockchain technology, they leverage the security and transparency features of the blockchain to ensure that game data and assets are tamper-proof and cannot be manipulated by any central authority. Moreover, DApps enable players to fully own and control their game assets, giving them the freedom to trade or sell their assets as they see fit.

One of the most significant aspects of DApps is their programmability. DApps use smart contracts, which are self-executing contracts that can automate the execution of game logic and rules. Smart contracts enable DApps to operate autonomously and transparently, without the need for intermediaries or third-party platforms.

Overall, DApps represent a new paradigm for gaming applications that offer increased security, transparency, and user control over game assets. As blockchain technology continues to evolve, DApps are expected to become even more sophisticated and capable of delivering a more immersive and rewarding gaming experience to users.

The gaming industry has continually been on the rise since the early 1980s when eight-bit graphics were popular. Game console products like SEGA and Nintendo DS heralded the compact-disc-plate gaming console before XBOX 360 and PlayStation took over the market. With interest in gaming rising and lots of related possibilities yet to be realised, gaming colliding with blockchain technology was inevitable.

The rigidity of the Bitcoin network meant project developers could not host decentralized applications on it. Gaming is demanding on hardware and software, and it requires speed and quick execution to flourish. Taking the smart contract’s deficiency out of the equation, transaction confirmation time on the Bitcoin network stood at 10 minutes. As alternative blockchains like Ethereum (with their acceptance of smart contract deployment) came to the fore, they signalled a new era for decentralized gaming. Today, the phenomenon is gradually moving to scalable blockchain networks, such as Algorand, with their low transaction fees, speedy confirmation time, and high levels of security.

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## **Unboxing Decentralized Gaming**

Decentralized gaming involves building games on decentralized systems, such as a blockchain, and giving gamers a much more rewarding experience than the traditional gaming industry is capable of. CryptoKitties was the earliest blockchain game built on Ethereum. Since then, gaming and game finance (GameFi) projects like Axie Infinity have taken the crypto arena by storm.

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## **Key Components of Decentralized Gaming**‍

●       Blockchains: Blockchain networks are integral to decentralized gaming as they serve as the hosts by recording transactions, distributing rewards, and executing actions via smart contracts. Due to blockchain technology, gamers can access the public records of actions and transactions no matter how many have been carried out during a game.

●       Cryptocurrency: In traditional games, players made in-game purchases with credit cards or regular payment methods. In decentralized gaming, purchases and transactions are made in cryptocurrency. Most blockchain games have their in-game token of value, which is the instrument used to buy assets, earn rewards, or enter the game properly. Decentralized gaming merges games and DeFi, creating GameFi.

●       NFTs: Not all blockchain games integrate the non-fungible token standard, but this is quickly becoming popular in the GameFi world. NFTs are digital assets and blockchain games are structured so that the player's in-game purchases could be NFTs, which involve full ownership and control being handed to the players of these tokens. The Algorand blockchain supports the creation of NFTs.

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## **Benefits of Decentralized Gaming**

Traditional gaming stifled players and has so many issues that gaming studios are yet to address. For example, there are the problems associated with high data storage demands and data breaches/losses due to the activities of hackers or incidents like fire outbreaks. Also, gamers do not have full ownership of their in-game possessions, nor do they have full control of their accounts; even privacy is an issue. There is also the matter of the increasing number of techniques to cheat, which removes the fair playing field for many gamers.

Decentralized gaming is an improvement on centralized gaming in several ways:

●       Security: Blockchain networks like Algorand support secure transactions that will ensure games are less prone to external hacks.

●       Privacy: Gamers' information remains private, which is an advantage of the anonymity that blockchains offer. Neither the game's developers nor anyone else can monitor the progress of a player as everything is run by smart contracts.

●       Ownership: Assets, achievements, and all forms of rewards in decentralized gaming are owned by the players who have complete control over their assets and cannot be frozen out of a game unfairly.

●       Rewards: The advent of GameFi meant one thing: players would earn rewards in cryptocurrency or NFTs for their gaming duration, skills, and DeFi participation. Some blockchain games feature mining rewards for staking and even payouts for holding their in-game tokens.

Nevertheless, there are a few downsides to decentralized gaming. Transaction finality means that missteps cannot be reversed. Also, navigating through these games could be tedious for nontechnical people.