Blockchain Integration Will Spark Rising Popularity of Free-To-Play Gaming Model, Technavio Says

The global gaming market is expected to post a compound annual growth rate (CAGR) of over 10% during the period 2019-2023, according to the latest market research report by Technavio. This growth will be driven by a surge in popularity from the so-called “free-to-play”model and driven by integration of blockchain technology.

In traditional video games, the in-game items and player characters are owned and controlled by game developers. The integration of blockchain technology in a gaming solution enables players to trade in-game virtual assets through contracts with other competing players and allows peer-to-peer transactions that can be accessed by anyone in the blockchain. For instance, GCS (GameChain System) is one such game distribution platform based in China. It uses blockchain technology to offer a secure transaction platform to its users.

The integration of blockchain technology also provides decentralized asset exchange, verifiable scarcity of virtual objects, fast and secure payment networks, and can enable game service providers or game developers to monetize their gaming services. Thus, it is expected that the integration of blockchain technology in the gaming industry will present a huge growth opportunity for market participants during the forecast period.

“Apart from the integration of blockchain technology, the increasing emergence of cloud gaming, rise in strategic partnerships and acquisitions, and the growing adoption of AR and VR games are some other major factors that are expected to boost the market growth during the forecast period,” Technavio analysts said.

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