# Key Advantages of Decentralization

***The Space Guild*** ***project is a decentralized ecosystem built on blockchain technology***. We shall now discuss some of the key advantages of decentralization in the gaming industry.

## Transparency

For ages, ***people have suspected the gaming industry to be dishonest and shady,*** but that was only because there was no reliable technology to confirm the transactions and make them available for public scrutiny. These concerns are overcome by the ***deployment of blockchain technology which utilizes an immutable public ledger to record transactions.***

 

Also, it facilitates the deployment of ***smart contracts for reward distribution and other financial transactions***. As smart contracts auto-execute, they eliminate the need for human intervention and the possibility of human errors and manipulation that come with it.

## Reduces Operational Costs

Blockchain technology paves the way for the deployment of smart contracts which are basically pieces of code with predefined conditions that trigger certain specific actions. ***Based on the conditions laid down in the smart contracts, it could trigger actions such as token allocation, revenue redistribution, token swapping, and much more***. As none of these redundant activities require human intervention, the costs are drastically reduced as compared to centralized gaming organizations.

## Reduces Financial Risks

***Banking and credit card frauds are an everyday occurrence***, but unless curbed they can ruin the trust and relationship between a vendor and a consumer. The disturbing part is that over 67% of financial institutions have reported an increase in cyberattacks and the only way to curb them is by ***minimizing the use of financial data*** (PurpleSec, 2022). This is precisely what the blockchain industry does by facilitating the use of cryptographic tokens and currencies.

 

## Immutability

***The biggest difference between Space Guild and other games deployed on a centralized server is immutability.*** The Ethereum blockchain is immutable, so any transactions recorded on it cannot be altered or erased at any point in time.

## Facilitates Interoperable Digital Assets

One of the major concerns with centralized gaming environments is the inability to move digital assets outside the platform. For instance, a player may earn a particular weapon after crossing several difficulty levels, so not being able to encash that seems like a waste of time. This isn’t the case ***when the asset ownership is tied to a non-fungible token and is recorded on the blockchain.*** This enables the ***owner to list the asset for sale on marketplaces that are popular among other gaming enthusiasts and derive value from it.***