Blockchain's next boom could be in gaming

Gaming and Facebook’s Metaverse could be the next big growth areas for blockchain technology, according to UNSW School of Computing Science and Engineering Professor Salil Kanhere.

Kanhere said the growing popularity of blockchain and its adoption even by tech giants such as IBM indicates that the technology is here to stay.

“Everyday people who have little or no computer expertise can still access blockchain through trading tokens or crypto. And all the platforms now make it so easy to access. We are seeing a rise in the popularity of blockchain and, in particular, NFTs,” he said.

The growing hype around blockchain is expected to lead to its use in even more areas of the economy, Kanhere said. One of the next areas where the technology could take off is in gaming, where some developers are already experimenting with using blockchain under a ‘play-to-earn’ model, he said.

“Tokens are created on a blockchain, and we’re seeing a lot more cases where users either earn tokens for how much time they spend in the game, or if there are virtual battles or quests in the game users earn tokens if they win,” he said. “They can then take those NFTs and trade them for actual real money.”

People can meanwhile buy into blockchain games by purchasing NFTs to participate; the more people wanting to play, the higher the price will be pushed, Kanhere said. There are also mechanisms where players who cannot afford a token can borrow another player’s in exchange for a percentage of ‘earnings’ from the match.

Facebook’s Metaverse virtual reality platform concept could also be prime ground for the technology, with Kanhere predicting a future where advertisers pay for virtual property, paying more for a presence in areas people congregate in greater numbers.

“Just like property in the real world, virtual property is about three things: location, location, location. Areas in the metaverse where people congregate will have a lot more value for advertisers and retailers to get access to the virtual crowd,” he said.

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