As cryptocurrencies and its underlying technology, blockchain, continue the uphill battle for wider adoption, it could get a boost from an unlikely source–gaming.
While cryptocurrencies have yet to be fully embraced by the public as it battles security and regulatory battles, blockchain is beginning to attain more traction as companies, large or small, public and private alike, are beginning to see it as a viable application for a variety of uses in a multitude of sectors. As such, optimism is riding high on blockchain technology becoming more and more prevalent.
While the majority of investment capital into blockchain technology is coming from abroad, Forbes’ list of 50 companies exploring blockchain use include domestic names, such as JPMorgan Chase & Co, Berkshire Hathaway Inc, Bank of America, and Wells Fargo. From the financial sector to the healthcare sector, blockchain technology appears to be manifesting itself in various forms as a workable solution for housing data and securing it from unwanted access.
“We are extremely optimistic on the increasing use cases for blockchain especially on the enterprise level right now,” said Matt Markiewicz, Managing Director at Innovation Shares, an index provider for exchange-traded funds (ETFs). “Many industries have not only started to explore but are actually implementing various blockchain-based solutions in their business models in order to help improve productivity, fortify data security and enhance connectivity. IDC’s latest blockchain spending guide estimates a CAGR (compound annual growth rate) of 73% in blockchain spending over the next 4 years to $11.7 billion in 2022 with the manufacturing, professional services and banking industries expected to witness the fastest growth.”
Gaming, however, could be the driving force that pushes blockchain over the edge, according to Andrew Colosimo of Xaya–a blockchain gaming platform. According to Colosimo, gaming can help with fraud prevention when it comes to payments, lower commission fees and play to earn gaming experiences.
“I think gaming definitely has the potential for being a catalyst for bringing more of the masses to blockchain,” Colosimo told Forbes. “Gamers, particular PC gamers are normally somewhat technical and typically enthusiasts who like new technology, and blockchain does need that bit of expertise at the moment. From our point of view – we know there is going to be a market for blockchain gaming but it needs to be approached carefully.”
Colosimo admits that the impact of blockchain technology in gaming won’t be instant, but like most good things, it will take time. However, with the combustible growth potential of gaming and blockchain, it could be as early as five years.
“Blockchain from our point of view is not going to take over the gaming industry completely but open new opportunities and a new genre of games,” said Colosimo. “That being said, as the technology matures it could be that in five, 10 or 20 years, every multiplayer game, payment systems and assets are stored and run on the blockchain, but certainly not in the near future.”