Gaming and the Blockchain in 2023 - Will There Be Much Progress?

2022 was a turbulent time for the blockchain. It was a year of ups and downs, with several major milestones being hit in the development of the technology but some shorter-term setbacks as the market corrected itself. 

One of the biggest reasons to celebrate in 2022 was Ethereum’s successful move to the proof-of-stake mechanism, which addressed several of the biggest criticisms of cryptocurrencies. In particular, the proof-of-stake system has made Ethereum more secure, much less energy-intensive, and more scalable. 

However, while this is a major milestone in the crypto space, the rapid decline in prices for NFTs and a few controversies have left some people feeling less optimistic and cautious. This includes the realm of gaming, where there have been several different approaches to bring blockchain technologies and gaming together. 

Many of the most passionate blockchain enthusiasts believe that this will be temporary and the excitement around the technology will return in the near future. 

So with that in mind, let’s take a look at whether there will be much progress in the areas of blockchain gaming. 

Payments

The simplest and most obvious implementation of blockchain technology into the gaming industry has always been (and likely always will be) the use of cryptocurrencies for transactions. 

Gaming companies have blown hot and cold with these digital currencies over the years. For example, Valve Corporation was an early adopter of bitcoin as a method of payment on its digital games platform. However, it unceremoniously dropped support for the cryptocurrency in early December 2017 after the cost of transacting in BTC skyrocketed. 

Microsoft has followed a similar path with its digital store over the years, though it’s not currently possible to use Bitcoin for anything related to Xbox. 

With the price of cryptocurrencies stabilizing, we may begin to see more adoption in 2023. 

iGaming

The iGaming industry is one that is quick to embrace new technologies as without this approach, it is unlikely to have existed. We can see plenty of examples of this today with sites like 888 Casino that offer a combination of bonuses and a selection of innovative game types to attract new players. 

There have been many people who have talked about the possibility of using blockchain technology in online casinos and betting sites. There are a few different ways this could work, the basic and most obvious being the use of cryptocurrencies for deposits and converting them into fiat money. 

However, some people want to take it further, ditching dollars, euros, and other traditional currencies altogether. Others would like to build the entire platforms on top of the blockchain so that smart contracts would facilitate each wager. There are even some examples of this, though they’re yet to enjoy widespread adoption. 

So far, this lack of adoption is because smart contracts don’t solve a problem that isn’t already addressed with existing mechanisms. For example, the “provably fair” element is already achieved through independent audits of software and random number generators, customer reviews, and governmental regulation. 

It’s not yet clear what additional benefits would be brought by the blockchain for iGaming, so we’re unlikely to see much more progress in this area for the rest of 2023.

Play to Earn

Play-to-earn games are a novel concept that work by rewarding players with in-gaming items that can then be traded on a secondary market for other cryptocurrencies and/or fiat money. The problem for them so far has been the fact that there has been little utility in these items, so there hasn’t been much demand for people wanting to buy them. 

There have been some examples of successful games that use this model, the most notable being CryptoKitties which allows players to breed and sell cats with other players. However, there have also been many examples of failures and outright scams that have come and gone in the last couple of years. 

This has damped the excitement around this type of game, and developers are having to rethink how they approach it. So far, it looks like the most successful ones are those that are designed to be fun and enjoyable first, rather than being an NFT project with a game attached to it. 

The dust will need to settle on some of the flops of 2022 before player interest will increase again. That could happen towards the end of 2023, but probably not before. 

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