Blockchain Technology in Gaming: Potential and Limitations
Blockchain technology has the potential to revolutionize the gaming industry, but there are current limitations that need to be addressed. Colleen Sullivan, from Brevan Howard Asset Management’s crypto-venture arm, recognizes these limitations and highlights the issue of throughput in public ledgers like Solana. With a capacity of only 2,000 user transactions per second, it falls short of what is needed for high-quality gaming experiences.
“That’s still a fraction of what it would take to put a game like Monopoly GO, its game logic and game state fully on-chain.”
Colleen Sullivan, at the Mainnet Conference
In 2021, companies like Ubisoft and Square Enix showed enthusiasm for blockchain technology, but as the crypto market declined, some projects were abandoned. Even though Horizon Blockchain Games received a $40 million investment from Sullivan and Brevan Howard Digital in 2022, she cautions that it will take several years for the technology to mature enough to accommodate large-scale games.
These limitations highlight an untapped market gap that awaits solutions.
Hot Take: The Future of Blockchain in Gaming
The potential of blockchain technology in the gaming industry is undeniable. While there are current limitations to address, such as throughput issues in public ledgers, innovators like Colleen Sullivan recognize the possibilities. As companies like Ubisoft and Square Enix showed interest in blockchain in 2021, it’s clear that the future holds great promise.
However, it’s crucial to acknowledge that the technology is still maturing and requires time to reach its full potential for hosting large-scale games. Despite challenges and abandoned projects due to market fluctuations, investments like the one made in Horizon Blockchain Games demonstrate a belief in the long-term viability of blockchain in gaming.
The gap in the market for blockchain-powered gaming experiences presents an opportunity for developers to create innovative solutions that will shape the future of the industry.
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