I’m glad I got to live through many eras of games improving through technology. Not bragging, but I’ve witnessed the birth of console games, the immersive power of virtual and augmented reality in gaming, and now, the power shift that blockchain technology brings for gamers.In other words, man, I’m old!
Because of these qualities, the implementation ofblockchain technology in gaminghas grownsignificantly, giving birth to a new gaming niche called blockchain gaming.
Blockchain gaminghasreshaped how games aremadeand played,and howgamers like us can own and manage game assets by creating newer in-game economies and gaming models like play-to-earn games, for example.
Blockchain gamingis promising for the industry,however, it comes with a fair share of challenges. This article will explore the potential of blockchain gaming in transforming game ownership and play-to-earn models by taking a deep look into the following factors:
What is Blockchain Gaming?
To understand how blockchain gaming works, let’s first take a look at what blockchain technologyis. Blockchain is a secure, yet transparent, decentralized digital ledger that keeps a record of all in-game transactions and assets a player owns.
Like its name, thisledger records data in blocks that are connected by a chain. This chain is spread out over a large network of computers, whichallowsit to becomedecentralized and reducesthe chances of altering or tampering with the recorded data.
Blockchain gaming is the process of applying blockchain to the video game development process. This allowsdevelopers to create newer game economies and gameplaymodels where gamers can earn, buy, trade, or sell game assets.
These in-game economies and gaming models usedigital currencies and digital collectibles to allow gamers to independently own, trade, or sell game assets for actual value outside a game’s environment.
Let’s take a look at some of the game economies and gameplay models that blockchain allowscreating in the next section.
Applications of Blockchain Gaming
Blockchain gaming has given birth to newer gaming economies and models, such as:
- Blockchain-Based Game Economies
- Tokenized Game Economies
- Play-to-Earn Games
- Freemium Blockchain Games
This section explores what each of these is. Let’s start with the gaming economies.
Blockchain-Based Game Economies
Blockchain technology enables the creation of decentralized blockchain-based game economies that allow you a greater level of control and flexibility over your in-game assets.
These in-game economies use blockchain-based currencieslike Ethereum, Bitcoin, or Binance along withself-executing agreements known as smart contracts. Together, these elementsensure higher security, transparency, and self-sustainability compared to traditional games.
They also strengthen our association and engagement with a game by encouraging us gamers like us to participate actively in improving a game’s economy and features.
Tokenized Game Economies
Tokenized game economies assign different game assets a value in the form ofnon-fungible tokens that can be easily verified and transferred to other environments.
These in-game NFTs can be used to purchase or trade other assets both in the gameand on decentralized third-party platforms, and can also be converted into actual tangible money.
This incentivized gaming model has attracted gamers looking to turn their assets into income streams, and also led to a higher level of participation and engagement towards growing or improving games.
Play-to-Earn Games
Like the name suggests, these games work on the simpleidea of higher rewards for higher time spent gaming. The more you play, the greater your chances of earning NFT game assets or other crypto rewards in gaming.
The criteria may require you tojustkeep playing, complete side missions, achieve milestones,or break records to win crypto rewards or NFT game assets. These can then be traded on decentralized blockchain markets for othervirtual items or actual tangible assets.
With the chance to turn thesevirtual rewards into tangible financial ones, blockchain gaming offers gamers and crypto experts everywhere the chance to make extra income using their skills.
Freemium Blockchain Games
This model blends blockchain features with the popular freemium model we often see in most traditional games, where players pay to buy additional features or in-game items.
Freemium blockchain games allow players to speed up game progress or buy in-game NFTs, items, or upgrades, using either normal money or cryptocurrency.
The model offers gamers and developers a balance between monetization and accessibility, and strengthens ownership and engagement by allowing players to experience the game before making purchases.
With these newer economies and gameplay models, blockchain gaming offers significant benefits to the industry. However, these are followed by certain challenges as well. The next section explores both.
The Benefits and Challenges of Blockchain Gaming
Blockchain gaming has established itself as a powerful element for transforming gaming experiences. The technology offers gamers and developers many benefits.
Benefits of Blockchain Gaming
Decentralized Gaming Platforms
This is the main differentiator between blockchain gaming and traditional gaming. Traditionally, most aspects of a game were owned and controlled by the developers. With blockchain gaming, you have the power. You can independently own, trade, or sell assets as NFTs or other crypto rewards.
Actual Ownership of NFT Game Assets
Traditional gaming limited you to owning, trading, or selling items only within its environment. With blockchain gaming, you break free from this limitation and can authentically own, trade, or sell NFT game assets indecentralized game environments or marketplaces for real monetary value.
Authentic, Transparent, and Secure Transactions
Blockchain gaming distributes information over a large network of computers, and no single entity owns the system. The transactions recorded are transparent and easily verifiable. Blockchain gaming networks also use multiple encryption methods to prevent sensitive data from being hacked, so once recorded, these transactions can’t be altered.
Interoperability and Cross-Game Compatibility
This is my favorite feature since I love a connected experience. The assets that youown in one game can be transferred to and used for transactions in other games. This creates a dynamic, seamless, and connected gaming experience across different gaming environments and increases the value of your in-game assets.
Democratizing Game Development and Empowering Gamers
The decentralization and lack of ownership empower you to play a bigger role in improving or adding to the game by sharingyour input ormaking changes. This, in turn, makes you a part of a dedicated community of gamers who are actively engaged in the development, improvement, and growth of a game.
The rise of blockchain gaming is promising for the future of the industry; however, it requires carefully considering and addressing a few challenges. Let’s explore some of the most significant ones in the next section.
Challenges of Blockchain Gaming
Technical Challenges
Integrating blockchain into video games can be technically challenging, and this may become a barrier to entry for smaller gaming studios or those with limited technical expertise and resources. This is because developers will have to understand blockchain protocols, develop smart contracts, and integrate cryptocurrencies, all of which require sound technical skills.
Diverse Legal Policies
Different countries have different laws when it comes to the legality of trading digital assets like cryptocurrencies and NFTs. This can create doubts about whether in-game transactions and asset ownership are legal. AAA companies and indie studios both will have to extensively go through these laws, depending on the areas they plan to launch their games.
Complex Onboarding Process
Blockchain gaming introduces features like crypto wallets, token purchases, and frameworks for managing these digital assets. All this can overwhelm players who are unfamiliar with blockchain technology. Developers must create a simple and user-friendly onboarding process to prevent this and retain them.
Scalability and Performance Limitations
Some gamers may find the charges for in-game assets too expensive, speaking from personal experience. In case they decide to make a purchase, slow or heavily trafficked internet networks can impact their game’s transaction processing time. Both of these factors collectively can result in lower in-game purchases and engagement, thereby limiting the revenue and growth potential of the game.
Growing Adoption and Competition
Blockchain gaming is being implemented by many major players in the gaming industry. To keep up with them, studios everywhereneed to constantly stay ahead of trends, differentiate their in-game offerings, storylines, and gameplays, and invest heavily in marketing. This may be difficult for smaller companies on a budget.
3 Real-Life Examples of Blockchain Gaming
Picking up on the last point in the previous section, this section explores 3 notable examples of games that have utilized the power of blockchain technology. Let’s take a look.
Axie Infinity
This is one of the most renowned play-to-earn games on the market, one that popped up many times during my research. It allows players to own digital pets known as Axies as NFTs that they can buy, sell, or trade.
CryptoKitties
I’ve tried this one and it’s also one of those earlier games that made NFTs popular. Players can collect, breed, and trade virtual cats with unique characteristics and genetics.
Gods Unchained
The game allows players to buy cards, which serve as NFTs that could be traded on secondary marketplaces. Additionally, the game offers wallets and play-to-earn features.
P.S. You can enjoy these games online. Just make sure you have a fast and reliable internet connection for the best experience. If you’re looking for one, I’d recommend reaching out to Xfinity.
The Future of Blockchain Gaming – Democratized and Interconnected Gaming Experiences
Blockchain technology has already added the ability to authentically own assetssecurely and transparently to the gaming industry.
As blockchaintechnology becomes more advanced, more and more gaming companies will center their attention on using the power of the technology.
This will result inthe creation of decentralized virtual worlds where assets from different games can easily be transferred and operated, leading to more interconnected gaming experiences.
