As the world of online gaming continues to grow and evolve, so too do the challenges facing game developers. One of the most pressing issues is how to properly account for in-game assets and transactions.
Traditional accounting methods are ill-equipped to deal with the complexities of virtual economies. For example, how do you value in-game items that can be traded or sold for real-world currency? And what about transactions that occur on multiple platforms or between different game worlds?
Blockchain-based accounting solutions can provide a much needed level of transparency and accountability for gaming DAOs. Bulla Network has already launched a blockchain-based platform that can be used by gaming DAOs to account for in-game assets and transactions.
By tracking all transactions on a public ledger, blockchain accounting can help ensure that game developers and publishers are properly compensated for their work. Additionally, smart contract functionality can automate many of the complex financial interactions that take place within virtual economies.
In particular, four areas where blockchain accounting can have a major impact on gaming DAOs are royalties, microtransactions, taxation, and secondary markets.
Royalties
In the traditional model, game developers typically receive a lump sum payment from publishers when their game is sold. This is problematic for a number of reasons. First, it doesn't take into account the ongoing value that developers add to a game through updates and new content. Second, it doesn't fairly distribute revenue between all the different contributors to a game, such as designers, artists, and musicians.
Moreover, when it comes to record-keeping and payments, the traditional model is rife with problems. Publishers often withhold or delay payments, and it can be difficult for developers to track sales and ensure they're being paid what they're owed.
With blockchain accounting, game developers get transparent finance on a globally shared ledger. This would also create a fairer and more transparent system for distributing revenue among all the different contributors to a game.
Microtransactions
Microtransactions are a controversial but increasingly commonplace feature in many online games. Players can purchase in-game items or currency with real money, which gives them an advantage over other players who don't make such purchases.
This can create a "pay-to-win" dynamic, where the richest players are the ones who have the best gear and equipment. This effectively shuts out many casual players, who don't have the disposable income to keep up with the Joneses.
Blockchain accounting can help solve this problem by helping to enable players to trade in-game assets for other assets or for real-world currency. This would create a more level playing field, as players would no longer need to spend money to stay competitive.
Secondary Markets
The secondary market for virtual items and currency is estimated to be worth billions of dollars. This market has grown up around games like World of Warcraft, where players can buy and sell in-game items for real-world currency.
While some game developers have embraced the secondary market, others have tried to crack down on it. They argue that it undermines the stability of in-game economies and can be used to launder real-world money.
Blockchain accounting can help solve these problems by providing a transparent and immutable record of all transactions. This would allow game developers to better monitor and regulate the secondary market for in-game items.
Takeaways
The gaming industry is at a crossroads. It can continue to operate under the current system, which is opaque, unfair, and unsustainable. Or it can embrace blockchain accounting solutions, which have the potential to solve many of the industry's most pressing problems. The choice is clear.
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