The effect of blockchain technology on India’s gaming industry in 2024

The gaming market in India has been growing like a wild bush fire. Actually, looking at recent reports, the financial year 2023-24 recorded a 23% Y-o-Y growth by revenue to reach $3.8 billion. Actually, according to a report by Lumikai, this whole growth is happening despite the 28% blanket GST on online gaming.

Well, one aspect of the gaming industry that has already started taking root in India is the use of blockchain. According to an article by Tracxn, there are around 81 blockchain in gaming startups in India. Actually, Mumbai is fast becoming a hub for blockchain innovations, hosting a good number of blockchain game development companies.

Top blockchain development companies in India

Well, many game developers in India are exploring blockchain technology and integrating it into games in order to enable secure and decentralised gaming platforms. Now, companies are leveraging smart contracts, NFTs, various cryptocurrency models for in-game purchases, and play-to-earn models to improve the gaming experience.

Now, some of the top companies that have integrated blockchain technology include:

• SDLC Corp
• Nazara Technologies
• Reliance Games
• Spiel Studios
• Apar Games

Actually, these companies are already changing how players view their gaming experiences. Now, players have transformed the way they interact with games.

But now, a major question that might come to your mind might be, how exactly is blockchain technology making an impact on games? We have just been mentioning that blockchain is taking over, but how exactly is it doing this? Let’s now mention a few things that might actually blow your mind.

Ownership of in-game assets

If you have worked with blockchain in gaming, you might have realised that there is a concept of true ownership that is now possible with in-game assets. Traditionally, in-game items such as skins, characters or weapons were controlled wholly by game developers. Despite the effort you put into accumulating those items, you could never really own them. However, because of NFTs, allows gamers to own these assets for real.

You see, now you can sell or buy the blockchain-based assets across different platforms and games. Interestingly, this is creating a player-driven economy. In fact, this concept of real ownership has brought about new possibilities where digital collectables have real-world value. Just imagine that what was only a hobby can become your career path. Interesting right?

Play-to-earn (P2E) games

Now, imagine that as a gamer, you are also an entrepreneur. Imagine being paid for being an active player. This is exactly what the P2E games offer. Well, players are rewarded with cryptocurrencies or NFTs when they obtain certain achievements.

Popular games in India that have popularised this gaming model include “The Sandbox” and “Axie Infinity.” Now, gamers are going around calling themselves entrepreneurs because, indeed, they are. After getting certain achievements, gamers are rewarded with either cryptocurrencies or NFTs. These incentives carry a real-world value which players can convert into at any time they want. Now, players have an even tighter bond with their favourite games.

You see, this model of gaming has created a more democratic gaming environment where players can earn out of their skill and time without having to pay upfront or engage with pay-to-win models. Actually, this is a win-win model for both gamers and developers, as the developers get to enjoy more players who are really active and engaged.

Enhanced security and transparency

Security has become the selling point of blockchain technology in all the industries it engages with. Now, gamers can conduct their payments without having to worry about fraud or their bank accounts being hacked. Now, you see, every transaction is recorded on a distributed ledger, which makes the transaction both immutable and traceable.

Well, the greatest thing about this technology in this aspect is the elimination of in-game asset fraud. This has been protecting gamers from malicious actors and hacks. Blockchain creates this trustless environment that allows transactions to happen automatically and securely without needing intermediaries.

Cross-game compatibility

The revolution of blockchain has only just began as it is now possible for cross-game compatibility. This is happening because of Web3. Web3 incorporates blockchain technology and token-based economics to bring all this to life. This could actually create an interconnected gaming ecosystem where the progress of one game can be affected by or affect another game. How cool!

Imagine being able to play using your favourite character from The Witcher game on Fortnite while wielding your most powerful sword from World of Warcraft. Actually, a 2024 report by DappRader reveals that Web3 games already account for 28% of dApp activity. This just means that decentralised gaming is becoming really popular.

A good example of this interoperability is the Enjiin Multiverse. Well, this multiverse is a collection of games with a common ecosystem of blockchain assets, allowing you to use characters and assets from one game into another. Just imagine you can use your sword from Forest Knight as a futuristic weapon in Space Misfits. Already, blockchain is making a whole difference. It is not just a theory.

In conclusion

Blockchain technology is indeed changing the way we look at different industries. This revolutionary technology ensures that India’s gaming experience completely changes, not only enhancing the user experience but also offering secure gaming platforms.