Blockchain video games are among the most promising use cases in the space

According to research from Chainlink, AZCoin News will briefly outline the level of randomness used in games, the economic impact of randomness in games and the activities of other players, the importance of Expectations of randomness in blockchain-based games. From there, we will conclude on how Chainlink VRF overcomes the limits of current random solutions.

Current randomness solutions are highly limited and not suited to secure the value they will create

What is the randomness In Games? Randomness is an important factor in many games used to create exciting and immersive player experiences. Nowadays, randomness is almost absent from blockchain game developers. The lack of secure random solutions is particularly severe, as the blockchain-based gaming industry grows and expands, the importance of randomness will not be limited to creating complex gaming experiences. Instead, the randomness in blockchain games will become an increasingly powerful economic force for both developers and players.

A key function of randomness in games is to expand the dynamics of the player’s actions and the environment – prevent mastery from becoming too fast, and the rewards are also better. This is achieved through two types of randomness: input and output. Input randomness occurs in a game before a player taking action. Some examples include a dealer giving a player a hand of cards, a random monster’ spawning’ as a player enters a game area, or a game map procedurally generating its environment. In all instances, this randomness stunts player mastery by altering the particulars of a game scenario.

Output randomness, on the other hand, manipulates the effects of a player’s actions or otherwise injects ‘noise’ into the outcome. This type of randomness can include a percentage chance to win a battle in a strategy game.

How Input and Output randomnes affect in-game scenarios

How Input and Output randomness affect in-game scenarios

The economic impact of the randomness of rewards

According to a report from game research firm NewZoo, it predicts that the total game market will reach nearly $ 160 billion by 2020, with the potential of that market to surpass $ 200 billion annually by 2023. Blockchain-based games are already expanding this market. Three of the most popular games and collectibles projects, CryptoKitties, Gods Unchained, and My Crypto Heroes respectively earned $ 7 million, $ 4.2 million, and $ 1.5 million in their first year of existence, and players earned over $ 20 million trading game assets on the secondary market.

Hironao Kunimitsu, head of the Blockchain Contents Association, recently stated that:

“I believe the blockchain gaming market could eventually grow larger than the GDP of Japan — currently estimated at $4.7 trillion. This will be accomplished primarily through the tokenization of randomly distributed in-game items as NFTs (Non-Fungible Tokens). As we discussed in our previous deep-dive 16 Ways to Create Dynamic Non-Fungible Tokens (NFT) Using Chainlink Oracles, a Non-Fungible Token (NFT) is a cryptographically secured token existing on the blockchain that represents ownership of something unique.”

One primary source of value for blockchain game items backed as NFTs is provable ownership and immutability. In legacy games ownership of items can be revoked, the stats and appearance of items can be manipulated, and if the game ceases to exist, the item disappears as well. Tokenization with NFTs mitigates all of these drawbacks: NFTs cryptographically secure ownership of items; the metadata associated with an NFT is impossible to manipulate unless expressly permissioned; and because it is stored on a blockchain, an NFT game item can outlive the game that generated it.

Additionally, this capacity of an NFT to exist outside of its origin game creates a new use case called a Metaverse. A Metaverse is a linked network of interoperable games where NFT-backed items can be used in each distinct game “universe.” Finally, NFT-supported game items also allow for greater liquidity and transparency in secondary markets. Organizations like Fair Games are looking to track the speed of NFT-generated games at random compared to market prices for assets created and then provide this information to players. This will allow players to choose which game they want to play based on their chances of making better money with NFT winnings, as well as ensuring that NFT items can be scarce through the essential publicity of blockchain.

Even so, the randomness still risks being manipulated by the developer who controls. In the case of unreliable, lack of transparency, developers can make the community of players suspicious. Randomness by nature allows for long, low probability events; A player’s extraordinary luck is an inevitable phenomenon for a sufficiently long time frame. When a community finds that a player has received a lot of rare items, the lack of transparency in centralized solutions will make them suspect that the items are not distributed fairly.

Blockhash solutions also have a limit on the amount of value they can secure. Once a game has become successful enough, criminals will begin to notice them. Successful blockchain games in the past have been attacked by various methods, causing teams faced with a choice to either to allow the value of their NFTs to become diluted, or to pay a ransom to the attackers.

And how Chainlink VRF solves the backlog

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The basics of how Chainlink VRF works

An ideal random solution for blockchain gameplay will overcome these barriers by proving fair and verifiable on-chain, as well as being safe from mining or tampering. An example of a random solution that owns these properties is Chainlink VRF. Chainlink VRF generates randomness on a chain that cannot be manipulated by any button operators, miners, or users. A cryptographic proof backs that anyone can verify on the blockchain as an authentic random source.

Chainlink VRF works in five steps:

  • A user submits a seed to a smart contract application
  • The application submits a Chainlink VRF request using the provided seed
  • A Chainlink node operator generates randomness and publishes cryptographic proof of the generation on-chain
  • The response is verified on-chain
  • The smart contract application executes based on the verified random data

This architecture protects smart contracts from manipulating randomness. Besides, when the product expires, Chainlink VRF will become even safer. Currently, if a node operator wants to affect the outcome of a random number, they have a method to do that in the form of a holdback attack. Although node operators cannot interfere with randomness, they may not send all the random calculations. In the future, this will be mitigated by using more miracles with collateral being sent answers via signature thresholds. This will allow Chainlink VRF’s security guarantees to increase in line with the growing value guaranteed by the blockchain video game market.

Blockchain video games are one of the most promising use cases in the space, possessing the potential to not only improve the player’s experience through increased transparency and ownership of game assets but also fundamentally redefines the game by allowing players to make better money during game time and skill. Although it has been an impressive economic force, these transformations will significantly expand the entire gaming industry.

However, for the space to achieve these lofty goals, developers and players need security and infrastructure that can support the amount of added value they will create. Randomness in games will shift from being primarily a tool for creating a better gaming experience and instead of becoming an essential channel through which value is created and distributed. Chainlink VRF is a random function explicitly developed for smart contract applications, a function that can increase the demand that this new economy will create.

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