Lightning Network 101

lightning network 101

Lightning Network 101

Online Games

Introduction

Gaming is a Multibillion-dollar industry worldwide with a wide demographic of users and skill levels. Professional gamers are modern day rock stars and some tournament winners become instant millionaires.

The bitcoin lightning network is likely to disrupt the gaming industry as the big gaming studio stranglehold diminishes. Smaller game providers and free to play games have been eating into the market and this has caused polarisation around certain marques.

Most studios have their own in-game token, which is a great business model for them but restricts the end user to specific titles or brands.

Concept

To play a game you send a bitcoin payment via the lightning network to the game address and have instant access to the game. No verification, passkeys, registration or any of the usual red tape. Simply Pay-and-Play. Game rewards can be in the form of  Satoshis and furthermore, this creates a programmable transparent way to reward developers working on collaborations.

For example, 4 players could “enter” a round of Fortnite as a team, playing against other teams. There is now a bigger incentive to take the game seriously as you can convert your “winnings” real-world rewards.

For

  • A users’ privacy is naturally protected because you only need to send a payment to play the game and do not need to share any further information
  • No language or customs barriers in order to transact
  • Instant real-time results

Against

  • Regulation may prevent this from being a reality, which would stifle further innovation
  • Potential vehicle for money laundering/tax evasion
  • To work well it would need to be the defacto standard for gaming related activities online

It is too early to tell which direction the use of the bitcoin lightning network will take. Moreover, it would be unwise to discount or exclude the gaming industry as one of the major verticles being pursued.

 

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