Does Decentralisation Bring More Security to Gamers?

In the ‘old days’ of Web2, gaming relied on centralized functions to properly develop games, host servers and run tournaments.

It also meant that the system required all game players to trust the developers with gaming assets and personal data - some people had concerns about this.

Step forward to the new era of Web3 and a decentralized gaming ecosystem that uses blockchain technology in a much more secure manner for everyone.

Let's take a look at how properly secure all this is and what it means for gamers.

Decentralized gaming - a precis

Here’s a precis of what it’s all about. So, decentralized games must store player data, digital assets, and game-state data in blockchain networks. In contrast, traditional games typically rely on centralized servers. These servers are generally owned by the game developers themselves, or third-party hosts, which keep all player-related data in one place that they have access to.

Now, that doesn’t mean to say that centralized servers are insecure – in fact, the reality is far from it. Some of the biggest names in the gaming world are operating very efficiently (and safely) via these servers – but, with players growing increasingly aware of their need for privacy, decentralised alternatives are growing ever more important.

A standard set by the casino industry

Let’s look at a real-world example. The online casino industry is a lynchpin of the gaming sector – one that emphasises the importance of player security and privacy more than any other. Payment methods, player data, and other sensitive data are naturally passed from user to site during any gaming session, and, for a casino in particular, the responsibility of keeping that data private is a priority.

But many users aren’t familiar enough with data security to know what the benchmarks of a good data privacy policy are. This is where the popularity of inclave casinos, which utilize highly sophisticated encryption technology in order to store user data in one ultra-secure centralised network and allow full visibility for users, becomes clear. This is especially important for non-GamStop casinos, as these sites are based overseas where data security measures might be less stringent than in the UK and EU where GDPR regulations are in place.

Sites like these are a great example of the gaming industry’s ability to keep players safe without resorting to decentralization.

But what does decentralization in gaming look like?

Distributed ledger technology (DLT): Decentralized games currently use this to store different gaming elements. DLT doesn’t help to store the games but they do use technology like dApps which allows players to connect their e-wallets to game software. Decentralized games allow players to use blockchain-based decentralized identifiers as their player information. Storing this info in a decentralized manner means it’s less likely to be exposed in a hacking attempt.

Non-fungible and fungible tokens: In-game assets are often minted as fungible or non-fungible tokens (NFT), which means that players can trade them with other players. Using NFTs means that players actually have proper ownership of their assets and can make money as they play.

A lot of the time, these kinds of games have an associated cryptocurrency to allow their players to purchase items in-game, too.

What are the benefits of decentralized gaming?

So, if you’re already a seasoned gameplayer, what are the benefits of decentralized gaming for those gamers who want to get involved in it or branch out?

Increased security. They offer more protection than traditional games do, as game developers can store game data on a distributed ledger. This is better as these kinds of ledgers are hosted on a global network of nodes that are always interconnected and securely protected by cryptography.

Enhanced privacy. These games let people sign in with a secure crypto wallet or an identifier that is decentralized. This offers additional and enhanced protection against hacking, cybercrime, and exposure of personal information.

Better player control. Players have a lot more say so and can use their e-wallets as an act of democracy. They can take a vote on game design choices as they are developed and own their in-game items. This is a great way to get involved and feel part of something.

Fair. Some ledgers offer game developers the opportunity to validate player actions quickly - and this reduces the incidences of cheating and fraud.

What are the negatives associated with decentralized gaming?

It's slow on scalability. Often there are issues with slower transaction speeds and this in turn creates increased transaction costs - sometimes the network can't keep up with the amount of transactions.

Technical know-how. A decentralized game requires players to understand - or learn to - set up a cryptocurrency wallet, protect all their passwords and security tokens, and also know how to buy and sell tokens. Sometimes this can be overwhelming for players and put them off an otherwise very enjoyable experience.

Interoperability. Decentralized games offer enhanced interoperability between games. But this comes with issues - as blockchain interoperability impacts nearly every decentralized use case and this sadly includes decentralized gaming.

There you have it - a breakdown of decentralized gaming - in short, it’s a great thing to get into, but not without its issues. However, the security it offers is unparalleled.