The gaming industry is set to become one of the most profit bearing businesses with a market share of $143 billion by 2020. And according to Forbes, the number of mobile gamers will exceed 2.4 billion this year.
Digital technologies such as blockchain and cryptocurrencies have brought a major transformation in this sector. Blockchain, for example, has tried to address a few key challenges such as fraud reduction, streamlining payments, and trading in-game assets.
It has also allowed developers to set up an in-game monetization using which they can generate more revenue. Today, there are several platforms that help developers to implement monetization using blockchain.
The focus is on providing all blockchain benefits so that the developer can create a unique crypto-powered game with ease.
However, if you are a game developer, you just don’t have to concentrate on writing perfect codes. You will also have to think about players or your target customers, who would probably be interested in playing the game.
Challenges of in-game monetization
But before we delve into the steps of implementing an in-game monetization using blockchain technology, let’s first analyze the main challenges of in-game monetization.
There are various monetization strategies that every game developer can follow such as in-app purchases, subscriptions, rewarded ads, and much more.
Apart from these, there are paid to play games, which any gamer can join. But for premium games, you need to pay a subscription.
Many users hesitate while going for online transactions because of security concerns. Also, the developers have to face a few other challenges while integrating the monetization policy for in-app purchases such as:
- Credit, debit cards or internet banking is no more secure method of transferring money with many loopholes.
- Implementing different types of payment gateways or channels, especially for international players, is quite a difficult task.
- Users avoid using your gaming platform due to high transaction fees and long settlement processes.
- The players are also concerned about the data and virtual assets that they have stored in your application servers.
Blockchain is an innovative technology that has the potential to solve all these problems in one go.
6 Steps to Implement In-Game Monetization Using Blockchain Technology
So, let’s have a look at how you can set up an in-game monetization using decentralized currency.
1. Building Your Own Cryptocurrency and E-Wallet
One of the biggest advantages of using blockchain technology to monetize in-app gaming is that it allows you to create your own cryptocurrency and e-wallet. It means that you are integrating a single digital currency that players can use to play and win games and trade for various other items.
Your tokens can replace outdated payment systems, which contain many security lapses. The cryptocurrency can also be used to purchase in-app gaming assets and earn rewards if a player achieves something.
Gamers will also be able to manage their tokens through the in-built crypto wallet. They can also view what other items in the game need to be achieved. Gamers can use cryptocurrency as a medium of exchange to trade across other games.
Game developers can use the Smart Contract features of blockchain to control transactions and auctions. It also provides the freedom to supply and demand forces to set prices.
As more crypto-powered games come on your platform and start using tokens, they all get listed on the blockchain platform. You will be able to list other games built by other developers on your platform. It creates an opportunity to earn more revenue.
2. Building a Gaming Platform
The blockchain is a set of massive networks that keep a record of transactions. If a new record is added to the network, it is cross-referred and verified against every node to ensure authenticity. Moreover, the information recorded in the block cannot be changed and anyone can view it.
You can imply the same concept while building the gaming application. The Blockchain will streamline the entire transaction and payment system, where you can keep track of all the gamers who are interested in playing your game and going for in-app purchases.
A player’s assets can be tokenized in a blockchain-based game. He is the actual owner of the token and is free to do whatever he wants to with his collection such as buying, selling or trading with other players.
If there are no restrictions imposed on players and they can freely trade off virtual assets, it would excite others to join the game. The game developer can frame the monetization policy based on the customer response. He can introduce some more exciting offers and rewards to increase the player base.
3. Creating a Community
Have you considered creating a blockchain-based gaming community? Being a developer, you must be aware of what a community is and how useful it is in carrying out any project.
Now, the question is why do you need a community while making a crypto-based gaming application? Well, the simple answer is promoting your app or selling your vision.
4. Developing a Design House
This may seem like a new concept for most gaming developers but it is a mind-blowing feature. It is a concept in which you can directly involve your players in the development process.
The idea is somewhat similar to developing an MVP or prototype for a mobile application. Here you can submit your app idea and ask your community of players to vote on it using their tokens. If you are not able to meet the token target, the players will get a refund.
It also provides you with another advantage. You get to know your audience’s response in advance and will launch the app, according to the preference of gamers. You can also use a free gift card to extend their support and give them a special asset or item.
5. The Market Is Boosted with Blockchain Gaming Projects
The market has been boosted by the introduction of new Blockchain-based gaming applications. The competition is getting stiffer and so you need to adopt a different approach and strategy to disrupt the industry.
6. Embark Upon a Digital Journey
Get ready to embark upon a digital journey with Blockchain technology in different industries that not only helps you to monetize your gaming platform but also provides an entirely new experience for gaming enthusiasts.
The players can get a more secure environment with real ownership and cross-platform compatibility while playing exciting games.
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Jenny Mauck is an experienced blog and article writer who has written on a wide range of technology niches including blockchain and cryptocurrency. In her spare time, likes to explore more on the latest trends in the technological arena.