Blockchain is an electronic database, just like every other database in existence. A blockchain is unique in that it ensures the consistency and security of a record of data and fosters confidence without the need for a reliable third party.
The system’s operation is the primary distinction between a common database and a blockchain. As each “node” is maintaining the same records of the list, the system is transparent because each block contains a cryptographic hash of the preceding block, the date, and transaction data.
A person who moderates the blockchain public ledger using his software and simultaneously creates the foundation of a decentralized network. People call it a node. The ledger is the same for every node. The other nodes will notice if a node attempts to interfere with the system (by posting a mistaken transaction) since it will be the only node with a different ledger.
How the blockchain gaming sector survived the collapse of FTX
Everything pertaining to cryptocurrencies has been affected by the collapse of the third-most popular cryptocurrency exchange. However, blockchain games are displaying enviable stability, which illustrates the market’s demand.
DappRadar data shows that in September and October, gameplay was represented by 912,000 daily unique active wallets (dUAW). This number fell by 12% to 801,000 in November.
Wax stands out among blockchains since its dUAW has increased for three consecutive months. Its clientele increased by 4.5% to 344,000 wallets in November. The popular game Alien Worlds is to blame for the astounding numbers.
The performance from Solana, which is closely related to FTX’s investing strategies, was the worst. The total value of the network’s losses, which were kept in SRM and FTT tokens on the crypto exchange, is believed to be $190 million. Serum, a cooperative endeavor, was abandoned entirely. Users and investors departed from similar initiatives, including games, as a result of Solana’s bankruptcy.
Virtual worlds experienced a true drop, even though overall game sales were down somewhat. November saw a 30% decline in trading volume, dropping to levels last seen in June 2021. Over the remainder of the month, the number of deals decreased even more sharply, falling by 48% to 10,919 total. All well-known applications, including Decentraland and Otherside, displayed the negative movement.
Games allow for more user participation, therefore the fall in this area is less obvious. Due to the fact that virtual worlds are largely an investment commodity, the general decline of the cryptocurrency economy is so gloomy for them.
Investor preferences by category also reflect these developments. Games raised twice as much money for development in 2022 as did financial platforms. It is obvious that the gaming industry will contribute to the bitcoin market’s growth once the overall downturn has ended.