As you play an intense game, a rare item has just been unlocked that could change the course of your play. But what if that item wasn’t just a digital trophy? Imagine owning something that you could trade, sell, or use in other games. Wouldn’t it be great if you owned it?
It’s time to take the gaming industry by storm, where blockchain goes beyond buzzwords to transform the industry. It promises to change the way we think about digital assets, user ownership, and even game design.
But with every innovation comes a set of questions. However, can blockchain live up to the hype in gaming? What obstacles stand in its path? And, most importantly, how will this technology revolutionize your gaming experience?
This blog will discuss the potential, benefits, and limitations of implementing blockchain in gaming technology. The insights will help you make an informed decision about using blockchain for your new gaming project. Some real-world examples and predictions for the future of blockchain in the gaming industry, which is gradually gaining favor among gamers and investors.
Let’s go deeper to learn more.
“One of the reasons I’m excited about blockchains is because I see them as a way to return us to predictable platforms where entrepreneurs and creators can build direct relationships with their audiences. This is what the internet was supposed to be.”
– Chris Dixon, Venture Capitalist at Andreessen Horowitz
What are Blockchain Games?
Blockchain in gaming technology improves or entirely transforms traditional video game architecture.
The natural interoperability of video games and Web3 is clear due to their common digital nature, use of digital objects and currencies, and incorporation of gamification. It’s important to remember that Web3 isn’t a game; rather, games can be built on its base.
Currently, most in-game assets and currencies do not take the form of tokens, although they have the potential to. Exploring how blockchain technology may improve the gaming experience is critical.
The basic goal of blockchain games, regardless of genre, is to transform the dynamic between players and game designers, creating a more equitable and transparent connection. Blockchain technology’s incorporation into video games varies in scope and use.
“The worldwide video game market is expected to reach $455.27 billion by 2024, with blockchain technology having the potential to change the industry.”
The Role of Blockchain Games in Cryptocurrency
With its popularity in the gaming industry, cryptocurrency has grown. Cryptocurrency is digital money that uses encryption to ensure, verify, and facilitate marketing. It allows users to make payments online without going through traditional payment channels such as banks and credit card companies.
Cryptocurrency, such as Bitcoin and Ethereum, enables secure and speedy payments for a variety of in-game purchases, including avatars, power-ups, themes, unique artifacts, and more. It also allows participants to earn incentives or crypto tickets, while playing matches.
With a significant bang in the gaming industry, you can’t ignore the altering cryptocurrency sensations that have swept away the entire gaming sector. As blockchain gaming grows in popularity significantly.
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Decentralized Marketplaces: Changing the Way Players Trade
Decentralized marketplaces are becoming a disruptive factor in the gaming space, which affects how players exchange in-game assets. By removing third parties from the process, decentralized marketplaces are revolutionizing conventional contractionary markets. Not only does this shift improve security. Also, it allows players to own or more accurately monetize personal avatars, objects, and items within the game.
A decentralized marketplace is a distributed marketplace that uses a blockchain to perform a transaction between users of the marketplace. Within the context of gaming, this implies that gamers can invest in commodities like characters, weapons skins, and virtual property and even trade characters, gun skins, and other virtual commodities without the need to report to a head office. Nevertheless, it is a public ledger that guarantees the transparency, security, and non-reversibility of the transactions.
Blockchain technology is essential for enabling peer-to-peer (P2E) commerce in decentralized markets. And then, blockchain enables this by tokenizing in-game assets.
Which blockchain game has the most potential?
CoinFantasy stands out as a blockchain game with immense potential. The world’s first decentralized fantasy gaming platform offers a unique play-to-earn model through which players earn rewards by predicting crypto market movements. CoinFantasy leads the next generation of blockchain gaming with its innovative gameplay, strong community, and seamless integration of blockchain technology.
Another popular blockchain game is “Axie Infinity,” which is one of them and is rather promising. Laboring with an incredibly diverse and evolving culture map, an enthusiastic user base, and real-world earning capacity, “Axie Infinity” has set the tone for what blockchain gaming could hold.
True Ownership of Digital Assets through Blockchain
Due to the new possibilities made available by blockchain, the idea of owning assets in gaming has completely evolved. Historically, players have interacted with in-game assets as mere licensees and not actual owners of the assets. By all means, they can have such assets limited or taken back by the game owner or developer at any time.
However, through blockchain, players are provided ownership rights to the assets, hence diametrically changing the system. This section aims to explain what digital ownership entails, and the use of NFTs. It more than explained its implications for gameplay and the game economy.
The Concept of Digital Ownership in Traditional Gaming
In conventional gaming, players buy or level up skins, weapons, avatars, etc. But these are not their properties in real life. Rather, they have permission to employ them in the context of the game only. Additionally, they function to contain weapons. This model presents several limitations:
- Lack of Control: A player cannot directly sell or trade his items to another player for real money without violating the gaming rules. Players have no ownership right if the game servers are closed. Suppose, if the developers alter the rules of the game, the players may lose all of their digital belongings permanently.
- Centralized Authority: The assets rest with the game developers, and unlike real-world commodities, the developers can always dictate that a particular asset cannot be traded or can be traded at a certain value. This centralization can make many players very frustrated and dissatisfied.
- Limited Economic Opportunities: Old paradigm gaming scenarios do not allocate ways for gamers to profit out of the time and capital they invest in the game.
Impact on Player Experience and Game Economy
The introduction of true ownership through blockchain and NFTs has profound implications for player experience and the overall game economy:
- Enhanced Player Agency: Players obtain more management rights over their in-game assets, which in turn encourages them to feel that they are in control. It can be adjusted, swapped, or even marketed based on the respective client’s preference or a company’s specific business approach and plan.
- Increased Engagement: True ownership as a possibility to gain financial benefits brings more players who will invest in the game. To that end, the players will spend time and effort when they believe that they will recoup their investment.
- New Economic Models: Interaction prospects in terms of earning profits mean that game developers may create additional sources of income while popularizing in-game achievements and items.
- Community Building: To improve the decentralized location of asset ownership, the players must improve their communication, trade, and interactions with each other within the established digital economy. Following the ideas from the presented case study, one can state that this approach based on the community can supplement the general experience of gaming.
- Challenges and Considerations: Of course, there are many positive aspects of true ownership, but there are also difficulties: the first of them is the regulation or, more precisely, the lack thereof; the unpredictability of NFT markets; and, perhaps, the last significant issue: people who still need to learn how to manage digital assets. Developers need to settle these problems to provide players with a free, conflict-free, and secure experience
Blockchain Gaming on Fire: Prospects of Blockchain Games
The introduction of blockchain technology into online gaming has the following advantages. And, it can revolutionize the process of game development, most played blockchain games, and revenue generation. Let’s begin.
1. Actual Ownership of Digital Properties
One of the key benefits of blockchain in gaming is the ability for players to truly own their in-game assets. Using non-fungible tokens (NFTs), purchasers can securely and efficiently trade items of value with manifold other players. This means playing organizations possess benefits where players can make money for their assets.
2. Security and Transparency
Blockchain technology improves the transparency of the real economy in the game context. So that players can check the credibility and origins of assets. Worth pointing out that, there is a lower chance of hacking and even fraud schemes, which makes the gaming experience safer for players.
3. Play-to-Earn (P2E) Models
Blockchain also opens up various new play-to-earn concepts, such as earning cryptocurrencies or other tokens while playing. It provides players with options for making money that they would want to gain by playing the game. Of course, play-to-earn blockchain gaming brings more users on board, who are not willing to do gaming before.
4. Interoperability of Assets
Through the blockchain, players can transact non-homogenous assets across various games and platforms. This gives users a level of interoperability across different games where they can leverage their NFTs more effectively. Notably, this cross-game functionality creates a greater experience in the gaming world and brings together gaming platforms.
5. Decentralized Marketplaces
Blockchain technology enables the creation of decentralized marketplaces where players can trade their in-game assets without intermediaries. We can find that those marketplaces must lower the transaction fees and give players the ability to regulate the prices. Thus providing more freedom and control to players to dictate the economic activities in the game.
6. Improved Game Development and Distribution
Blockchain can streamline game development and distribution processes. Smart contracts can automate various aspects of game publishing, including revenue sharing, royalties, and licensing agreements. This can also encourage developers to produce better-quality games, as they can be assured of a share of the revenues once customers offer more information on the value of the product.
Limitations of Using Blockchain in Gaming
Although blockchain has several benefits in the gaming industry. Some of them are:
Complexity in the Gaming Process
The difficulty in playing such a game stems from the gaming process itself, rather than the blockchain game design or storyline. Typically, the sign-up and account registration process is simple, but creating a cryptocurrency wallet is more difficult. This is because the gaming user must purchase a specific number of crypto tokens, which can vary depending on the blockchain game.
High Competition
The gaming industry has always been competitive, with new games daily. Leveraging technology such as AI in gaming has also opened up new opportunities for firms in the industry. Furthermore, the growing popularity of blockchain game development has accelerated the number of blockchain-based games, thereby raising competitiveness. All of this makes it difficult to develop a blockchain game that has an advantage over others.
Regulatory Issues
Many cryptocurrencies, including Theta and MANA, are still not held in blockchain-based games. Because these bodies are still working to understand and authorize their functions, employing them for blockchain in gaming may pose a danger.
Real-World Examples of the Top Blockchain Games
Blockchain games are essentially video games using blockchain development. In other words, they are always inside the blockchain, and the entire cluster of systems playing the game has a copy of it. They allow players to purchase and sell cryptocurrencies, NFT games, and other blockchain aspects with other gamers via the internet. Some of the more popular blockchain games are:
CoinFantasy is one of the first platforms operating in the sphere of blockchain gaming, which combines the inspiring experience of the best play-to-earn blockchain gaming mechanics in the industry with the continuous integration of modern technology. Thus, by fixing several issues within the gaming system, as well as giving control back to players and subjugating developers, CoinFantasy offers a decentralized gaming experience. The use of blockchain technology enhances the realism of the game, allowing players to sell or trade actual properties as owned in the game.
Axie Infinity is a game made on the blockchain. The characters are axies, and to be more precise, the Axies are the form of NFTs and can be owned and traded on the blockchain. This has grown in popularity because of its play-to-earn approach, which allows players to earn tokens by engaging in the game. Many players, particularly those in developing nations, now rely heavily on the game’s economy for a living.
CrytoKittes was released in November 2017 and is one of the world’s first attempts to establish a blockchain-based game. Players can trade their kittens on an open marketplace or keep them until they become valuable. Each kitty’s personality is determined by genes that reflect different qualities like hair patterns, eye shape, base color, and accessory color.
When we talk about blockchain in gaming, Decentraland is the first thing that comes to mind. Decentraland is a virtual reality platform that employs blockchain technology to provide a decentralized virtual environment. The platform enables users to create, enjoy, and monetize content and applications.
Users in Decentraland’s virtual realm can wander around, investigate, and purchase properties owned by other users. They can even pay to play games, go on space adventures, join clubs, and try out all of the diverse things that builders throughout the world could only dream about.
Gods Unchained is a collectible card game that uses Ethereum to track card ownership. These cards are digital assets that cannot be reproduced or modified without the owner’s consent, making them both unique and precious. Moreover, the Gods Unchained cards can also be traded directly between players without going via the game’s marketplace, and they are secured by the Ethereum blockchain, keeping them safe from hackers.
“According to current industry reports, the blockchain gaming market is expected to reach $65.7 billion by 2027, representing a compound annual growth rate (CAGR) of 68.2%.”
Source: Appventurz
How is Blockchain Technology Transforming the Gaming Industry?
Have you ever wondered if you could sell your virtual items for cash? Find out how blockchain is disrupting gaming industries and changing the gaming world! The mass adoption of blockchain gaming in dealing with the current challenges in the gaming business has the potential to change the gaming business.
Here are a few options:
Increasing security in the gaming industry: Blockchain gaming provides a more secure environment for gamers and company owners, resulting in higher-quality production. There are no servers to target; therefore, hackers cannot shut down a decentralized blockchain network.
Additional control over video games: Gaming networks built on the blockchain are unchangeable. This ensures that future network-deployed game programs and series do not change. This allows you to download and install different video game versions from anywhere without impacting your gaming experience.
In-game assets: These can be developed through the utilization of blockchain technology, which raises the level of ownership and implies improvements in the regulation of the gaming industry. In blockchain gaming, customers can trade and make money out of unique items by holding ownership at the real level for digital assets.
Improved control over resource exchange: Innovations of the blockchain define gaming mining to mean that gamers and developers can build resourceful games and applications, modify game versions, and gain rewards. This allows them to contribute and earn tokens while maintaining their user experience.
Improved payment methods: Blockchain games to earn cryptocurrency are extremely anonymous and safe. Multiple breaches of broad networks have previously occurred in the gambling business, exposing and selling customers’ credit card information online. Payments in blockchain gaming applications are made with local crypto tokens or comparable tokens, resulting in a better transaction experience. Combining cryptocurrencies and video games can broaden enthusiasts’ payment alternatives.
The Future of Blockchain Gaming Platforms
As more firms explore blockchain technology, we should expect to see more games and platforms using blockchain in the future.
Major investors are investing heavily in Web3 gaming. According to a recent Dappradar report, $748 million was invested in August 2022 for the development of new crypto games. As a result, we can easily foresee the future and how Web3 in gaming will shape it.
It will merely create new options for incorporating money systems into the game. Gaming cryptocurrencies, with their governance of the underlying blockchain technology for secure payment rails and digital asset ownership, will help the gaming sector to new heights.
Conclusion
The future of blockchain gaming is extremely promising for both players and corporations. Integrated games offer another level of play and immersion because of the features mentioned above, including the true ownership changes of digital assets, and players’ sovereignty proffered by blockchain technology. Despite screw-up factors like scalability, the user experience, and the legal environment, the industry is still advancing.
Nevertheless, interoperability and collaboration offer businesses opportunities to create intense and uncompetitive gaming services. Thus, there is evidence that the blockchain revolution is going to continue and develop, and the usage of the blockchain allows enterprises to enter a new market, find new revenue streams, and shape the development of the industry, in this case, the gaming industry.
Frequently Asked Questions
1. What are blockchain games?
Blockchain games are video games that use blockchain technology to enable players to use real-world assets to play games and own property in those games.
2. What are the advantages of blockchain gaming?
Blockchain-based gaming has not facilitated enterprises in increasing their gaming user base, but they do get certain benefits, which are a secure environment, better control, better and easier transfer of assets, better immersion, and better earning opportunities.
3. How does blockchain benefit gaming?
Blockchain technology can provide participants with secure digital identities and reputations. The gaming business can utilize these IDs to verify players and prevent fraud. Blockchain provides the gaming sector with unprecedented levels of transparency and security for its transactions.
4. What are the important trends to watch for in the blockchain gaming market?
The key motivation forces in the blockchain gaming industry are the increasing investment in blockchain games, the P2E and NFT trends, excessive use of crypto wallets, and the transformation from traditional games to modern ones.
