Blockchain technology has in the recent years proven to be a viable option for making transactions. The technology has also piqued the interests of investors due to its incredible benefits such as enhanced security, transparency, and decentralized over the traditional networks. Among the industries that have significantly benefited from technology is gaming industry. However, the blockchain is also facing a number of challenges that could make it a little bit difficult for developers operate on its network.
Therefore, if you are planning to adopt the technology into your gaming platform, there are a few challenges you should know about before making the decision.
Here are Current 5 Challenges of Blockchain Technology
High Skillset Requirements
One thing that is rarely mentioned by blockchain marketers is the required technical expertise. To run a blockchain network requires high technical skills, especially in computing or programming. The technology relies on encryptions to keep the network secure and to establish the consensus over the distributed network. That simply means sophisticated algorithms are required to keep your gaming platform live on the network.
If you don’t have the skills, you will need to hire someone, and it is extremely expensive due to the limited number of blockchain experts. So for anyone planning to migrate, they must be ready to invest in experts to keep the platform running.
Blockchain Can Be Slow
Limited scalability is a major problem that the current blockchain technology is struggling with. The number transactions per second is very low even with the most established networks such Bitcoin and Ethereum. Due to the network’s encrypted and distributed nature, most of the transactions take a while to be processed. That means fewer games will be played and that will impact negatively on your net revenues.use of dApps on blockchain
As gaming entrepreneur, that is something you need to look into carefully to ensure that traffic to your business is not hampered. According to gaming entrepreneur Dooma Wendschuh, there are blockchain-based networks that are promising thousands and millions of transactions per seconds. So if you are to invest in gaming technology, go for a network provider with excellent scaling.
High Setup Costs
The cost of setting up or adopting the technology is another factor any gaming entrepreneur should consider before migrating. Once a blockchain network is set up, the developer will need to invest in the company’s tokens to transact on the ecosystem. The number of tokens mostly depends on the size of the transaction that will be making. Note that each gaming platform is unique and thus blockchain has to be generalized to meet your need.
That means you will need to invest heavily in designing new software to meet your needs. That cost goes to the developer or the entrepreneur. So you will need to factor in all these costs before making a decision.
Privacy is a fundamental challenge to individuals, companies or organized that car privacy. Although blockchain technology is hyped as being the solution to gamers mistrust towards the gaming platform, it may be the same to the entrepreneur. The technology is solving the “problem” by storing the transaction records in a public ledger where anyone can see. However good it is, the solution may not work well for the gaming entrepreneur.
With most blockchain platform making use of the smart contracts, all information about the transactions is public, and thus anyone can use it as they wish. Therefore, hackers, competitors or unauthorised parties can use the date to destabilize or bring your business. However, there are projects such as Zero-knowledge proofs, Mixers, code obfuscation and Oracles working towards alleviating the issue of privacy.
The technology is still in its early development stages, and thus new problems will be coming up along the way. With the current issues being scalability and high skillset requirement, we cannot rule out of other problems coming up along the way. It is important to note that the issue of limited scaling came out with the influx of new traders. So we have no idea of what could happen if everyone turns to blockchain today.
However, there are blockchain platforms that are working towards making the use of dApps on blockchain easier for the developers. So for gaming entrepreneurs, these are some of the key challenges to focus on as of now but also focus on the possible future problems.
These are main blockchain challenges that any gaming entrepreneur should consider. The technology is in its early development, and thus we can expect things to get better. Most of these challenges are already being worked on, and possibly, they will be alleviated if the on-going projects will be successful. The issue of limited scaling and need for technical skills are some of the most researched with projects almost near completion. So, the future of blockchain technology is still great.