Blockchain technology is the next big thing in the gaming industry. This emerging industry saw a load of attention gain since its inception. Blockchain games have been around for a while now. However, the industry has seen a drastic rise in the number of games in the last few years. The endless possibilities of blockchain technology in the gaming industry are enticing millions of gamers, crypto enthusiasts, and investors all over the world.
What is Blockchain gaming?
Blockchain is a digitally decentralized, distributed, public ledger that enables secure transactions and maintains records. The term blockchain gaming refers to games built on blockchain technologies or games that use blockchain technology to facilitate NFT creation, trading, and ownership functionality. Unlike traditional games, blockchain games are completely decentralized and aim to provide players with in-game assets that are valuable beyond the games. To purchase these in-game assets one should use Cryptocurrencies and NFTs. They can then exchange in-game assets for real-life money and cryptocurrencies.
Usually, blockchain technology reminds people only of cryptocurrencies, decentralized apps, or maybe even DeFi if they have done their research about this technology. But in recent times the blockchain gaming industry has benefited from the growing popularity of nonfungible tokens, free-to-play and play-to-earn models, attracting over 1.5 million diverse gamers throughout the world.
The rise in Blockchain gaming platforms
The gaming industry continues to embrace blockchain technology as more developers and game studios partner with blockchain platforms. The report by DappRadar and Blockchain game alliance states that blockchain gaming has increased 2000% since the Q1 of 2021 and it’s expected that 2022 will be the benchmark year for blockchain game developers. A few months ago, blockchain gaming had 1.22 million unique active wallets (UAW), making up 52% of activity in the blockchain industry. According to the report, developers raised $2 billion in investments in Q1 alone of this year(2022), and the figure could balloon to $10 billion by the end of the year. These figures also suggest the blockchain gaming niche is becoming a key sector for investors.
Ownership of in-game assets
In blockchain games, the players have more control over their game as they retain control over the assets. In traditional games, the developers have all the power to add/remove items or make any changes to the game. But they cannot remove the in-game assets earned by the players in blockchain gaming.
Even if the game is shut down or some glitch happens, the players have the authority of their assets. The in-game NFT assets earned by the players remain theirs. They can store it in digital wallets. The potential to be sold or traded as their value can be retained beyond the lifespan of the game. A player automatically becomes the owner of a digital asset if certain conditions are met, such as completing an activity within the game or purchasing the asset.
Play to Earn games (P2E)
The key selling factor of blockchain games is the play-to-earn gaming model. This model allows players to earn tokens, rewards, or assets for completing certain tasks such as leveling up in the game or completing a challenge. The traditional gaming setup was such that players spent hours playing games or even spent money to play certain games but earned nothing in return. Whereas, with blockchain games, the players can monetize their effort, time, and skill spent in playing the games. i.e., players can mint rare NFTs, earn cryptos, weapons, avatars, etc, and get complete ownership of these assets. These assets are valuable beyond the game and players can earn money by selling or trading these assets.
A great example of this is the Axie Infinity. In the popular play2earn game, Axie Infinity, players breed, train and battle digital pets axies and earn income for doing so. The growth of Axie Infinity has paved way for other such play2earn games. To know more about P2E games, check out this blog.