The Video Game Revolution: technical aspects of how this works.

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First let’s discus the things which make the revolution possible.

Non-fungible Tokens
We previously mentioned that players win all types of in-game items, but the items
An important part of any video game is the weapons, gear and game specific items. These items are usually won by a character and are only useable by them. But as we learned in the blockchain Based game Splinterlands if we make those in game items unique visa vie non-fungible tokens, they can be traded, or bought and sold between players. If the in game reward currency is something with value outside the game like Bitcoin then winning games and obtaining items of value takes on a whole new meaning.

Sidechains
A side-chain is a blockchain that runs parallel to another Main blockchain. It’s purpose is to enable new features and capabilities while leveraging the Main chain’s security. A side chain is interoperable with the Main blockchain and supports the secure transfer of assets between chains. In the Bitcoin ecosystem Bitcoin is the Main Chain and Bitcoin Lightening Network is the Side-Chain.

The Bitcoin Lightening Network
The Bitcoin Network is a side chain, or a blockchain that runs parallel to the Bitcoin blockchain. It’s purpose is to enable new features and capabilities while leveraging bitcoin’s security. The Bitcoin Lightening Network is interoperable with the Bitcoin blockchain and supports the secure transfer of assets between chains.

We are familiar with side chains here. We understand how value is traded back and forth between the side chain and the main chain. We understand how transactions are carried out on the side chain and ultimately recorded on the main chain. The Bitcoin Lightning Network is a similar Bitcoin blockchain side chain. It provides the structure for a new micro-economy the video game. Transactions occur on the Lightening Network side-chain, but are ultimately recorded on the main chain, the Bitcoin block chain.

The Blockstream developers and conceptual people took this side chain concept and created a side chain where micro transactions or very small fractions of Bitcoin could be conducted at faster transactional speed, lower transactional cost and then recorded on the main Bitcoin blockchain. This concept of micro transactions, micro-transaction fees and faster transaction times allows small transactions to occur on the Bitcoin side chain. But in this case they are transactions inside a video game. You kill a player, you get 500 Satoshi. While 500 Satoshi is very small, and the transactional cost or miners fees would make it economically irrational on the Bitcoin main chain, it’s not expensive on a side chain.

Final Thoughts

I hope you can now see why this is a revolutionary concept from both a gaming perspective and a decentralized economy perspective and how making it possible for gamers all the world to earn Bitcoin is a great use case for the adoption of both Bitcoin specifically and cryptocurrencies in general through increased awareness.

by @shortsegments