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Saturday, 28 January 2023
Art, Gaming and the New Frontier of Blockchain Technology – why performance in NFTs is poor

Art, Gaming and the New Frontier of Blockchain Technology – why performance in NFTs is poor

2022-10-29

Art, Gaming and the New Frontier of Blockchain Technology- why performance in NFTs is poor In the past few years, the blockchain industry has experienced an unprecedented growth, with the number of blockchain projects increasing from five in 2016 to over 1,000 in 2018. The number of blockchain-based applications has also escalated, with an increase of more than 3,000 by the end of 2018. Nowhere is this growth and adoption more evident than in the gaming sector, which is essentially a decentralized digital collectible card game that is played online and in app-based gaming venues such as casinos, arcades and online gambling sites. While the number of blockchain-based gaming projects has increased, the performance of these projects in delivering on their blockchain-based gaming promises remains substandard. The article explains what blockchain is, the benefits and uses of blockchain, the problems with the current gaming performance on the Ethereum network, and the potentials of the new decentralized gaming network that is emerging called the gaming frontier.

Potential of the new decentralized gaming network

The decentralized nature of the Internet and the advent of decentralized blockchain technology promises a new way of doing business. While the Internet was decentralized in that individuals had little control over the data they transmitted, received and stored, the blockchain is fully decentralized in that it is decentralized in the sense that no single entity has control over it. The decentralized blockchain also offers several advantages over centralized blockchain platforms such as no middleman, no control over data and elimination of counter party risk. But it also comes with several challenges. One of the major challenges is the performance of the decentralized network. The decentralized network has no central authority that can oversees the performance of the nodes. This could lead to slow, error-prone and costly transactions. Furthermore, the decentralized nature of the blockchain could also lead to an arms race between the parties using the decentralized network. Enterprises that wish to maintain a competitive edge would do well to understand the challenges and opportunities facing the decentralized network.

Problems with blockchain gaming

Currently, the most common application for blockchain technology is as a distributed ledger for digital assets like cryptocurrencies. This technology has the potential to be used in many different industries, including the gaming industry. However, in order to realize the full potential of blockchain technology in the gaming industry, certain hurdles have to be overcome. Blockchain technology has the potential to improve the gaming business model by reducing operating costs and increasing player liquidity. However, it has also been used in cases where there was very little player-to-playfield interaction and gaming was purely focused on business models that relied on frequent player Behavior Matching (BPBM) – the ability of blockchain technology to generate revenue through a fee based system. As mentioned above, the transaction fees generated by blockchain-based systems are far less than the average transaction fee charged by online casinos. In these systems, the blockchain is used to structure the information in a way that makes it almost instantly searchable by the casinos’ sensors. This means that the casinos are able to monitor and control the amount of money being played on their machines. However, in the absence of any player activity on the machine, the blockchain is unable to generate any revenue. What this means is that in order for blockchain technology to really make a difference in the gaming industry, it needs to be used in combination with other business models and/or commercial models that generate revenue through player behavior matching – a process that is still in its infancy.

 
 

The new decentralized gaming network that is emerging called the gaming frontier

The gaming industry is experiencing a transition that is leading to the decentralization of many industries. The process is called “downstreaming,” where the traditional centralized model is successively down-ranked, before being replaced by the decentralized version. The gaming industry is no exception to this rule. In order for the decentralized gaming network to gain traction, it has to win the confidence of the players. The gaming industry is no stranger to disruption and innovation. It has seen disruption come from all directions, from the introduction of slot machines to electromechanical devices and now from blockchain technology. The gaming industry has always been ready to adopt new technologies and concepts, provided they are embedded with value for players. The gaming industry is no different. It has been exploring the potentials of the new decentralized network for some time now and now that the technology has advanced to a sufficient level, it is ready to be deployed in the gaming sector.

The problems with the current gaming performance on the Ethereum network

The Ethereum blockchain network has a lot to offer. It is one of the most used blockchains in the world with over one million users. It has the potential to be used for a wide range of applications, including gaming. Unfortunately, the performance of the Ethereum network is substandard. It is by no means the best in the world, but it is a decent enough performer. It has a market capitalization of over US$ 150 billion, which is larger than the GDP of some of the biggest economies in the world. It has a large number of users and a wide variety of applications that are supported by the network. However, the Ethereum network suffers from a number of issues. One of them is scalability. It is limited in the number of transactions that can be processed per second. Another is the privacy of user information. Both of them can be addressed through technological advancements that have been recently implemented in blockchains. However, the blockchain privacy solution is still in its infancy. Another issue that the blockchain network has is with its scalability. A decentralized gaming network that can sustain only a few hundred players is unlikely to enjoy long-term success. If the decentralized gaming network were to scale up to accommodate a larger player base, it would require a modification of the blockchain structure to accommodate larger blocks. With its current performance, the Ethereum network does not suggest that the decentralized gaming network is able to sustain large-scale operation.

Conclusion

The decentralized nature of the Internet and the advent of decentralized blockchain technology promises a new way of doing business. While the Internet was decentralized in that individuals had little control over the data they transmitted, received and stored, the blockchain is fully decentralized in that it is decentralized in the sense that no single entity has control over it. The decentralized blockchain also has several advantages over centralized blockchain platforms such as no middleman, no control over data and elimination of counter party risk. However, it also has several challenges such as the inability to oversee the performance of the nodes which could lead to slow, error-prone and costly transactions and the decentralized nature of the blockchain could also lead to an arms race between the parties using the decentralized network. Enterprises that wish to maintain a competitive edge would do well to understand the challenges and opportunities confronting the decentralized network.

 

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