Did you know that blockchain gaming activity witnessed a growth of 2000% in 2022 compared to 2021? Competing with a challenging micro and macroeconomic standpoint, blockchain in gaming is a stable asset that has surpassed $2.5 billion in investment from VCs and other global investors.
Furthermore, development activities continue to grow for the gaming dApps while, at the same time, the metaverse ecosystem has imparted more opportunities for games to shine in the blockchain universe.
Several financial institutions have further estimated the potential of the rapidly evolving decentralized metaverse to stand tall at the forefront of the $8 trillion market. Integrating Blockchain technology in gaming apps is the significant factor driving this kind of market growth.
According to the ‘DappRadar x BGA Games Report – Q1 2022’ report linked above, the blockchain games were further able to attract more than 1.22 million unique active wallets (UAW) in March 2022, which amounted to 52% of the total activities involved in the blockchain ecosystem.
People are captivated by the idea of putting substantial in-game assets on the blockchain. Once acquired by gamers, these assets can be exchanged for monetary value, while game app development company can create persistent platforms that other developers can build upon. Although these ideas seem rather exciting, the sector is still in its early stages and comes with its own set of difficulties.
In this article, we will help you understand everything related to the world of blockchain technology in gaming. But before moving forward and diving into details for the same, let’s understand what blockchain is and how it is used in the gaming industry.
Table of Contents
What is Blockchain and how is it used in gaming?
Blockchain is a decentralized, distributed digital ledger that enables secure transactions and maintains records. It has created a new gaming experience for both businesses and players who use NFTs and cryptocurrencies to purchase in-game assets that could be exchanged for real-life money. For instance, Axie Infinity has millions of players globally that use Ethereum-based cryptocurrencies.
Role of cryptocurrency in gaming
With its popularity in the gaming industry, cryptocurrency has also evolved. Cryptocurrency is a digital currency that uses cryptography to secure, verify and facilitate transactions. It allows users to make payments online without going through traditional payment systems like banks and credit card companies.
Cryptocurrencies, such as Bitcoin and Ethereum, enable secure and fast payments for various in-game purchases, like avatars, power-ups, themes, unique artifacts, etc. It also allows players to earn rewards or gaming crypto tokens while playing games. with the rise in crypto gaming/blockchain games, there are various ways in which blockchain technology is being used in the gaming industry that include:
Non-fungible tokens or NFTs are digital assets with the proof of ownership being stored on the blockchain, establishing the ownership of the digital asset beyond a doubt. With the advent of Web3 and the use of blockchain in gaming, NFTs can take any form such as but not limited to: memes, videos, GIFs, images, and other digital assets. NFTs create a way for gamers to truly own their digital possessions. This gives players more control over what happens to these items and makes them easier to trade and sell since there’s no need for an intermediary like another player.
Play & earn
Blockchain has given rise to a new sub-genre called “Crypto-Games.” Crypto games are different from traditional games because they allow players to earn cryptocurrency (or digital currency) by playing the game. Cryptocurrency from these games can be converted into real money or used to buy new items within the game. So how does this work?
When you initiate crypto gaming, a cryptocurrency is rewarded to you that can be used outside the game in “the real world.” The idea is to encourage gamers to continue playing by giving them an incentive in cryptocurrency so that they can redeem it for real-world goods and services.
Virtual events and tournaments
Virtual events and tournaments are a critical component of the overall gaming industry. For decades, virtual events have been organized globally, which requires many resources for managing teams, prize pools, and event venues. However, many challenges have been faced in this process, such as the high registration cost, ticket prices, bandwidth, cybersecurity, etc. Also, it isn’t easy to verify the rewards participants earn.
Blockchain technology can make this process easier by providing the ability to track and verify who has received the rewards for their matches or competition wins. Blockchain technology is decentralized and offers secure transactions among users, and it automatically tracks data from any network where it is implemented. Therefore, it is easy for gamers to participate in virtual events and tournaments using blockchain technology.
According to a Newzoo report, In-game transactions will generate 9.6% revenue growth on a mobile platform by 2023.
While the above discussed are a few ways that allow users to earn digital assets cautiously, there’s no doubt to it that the gaming industry is transforming using blockchain technology. How? Let’s find out.
How is the gaming industry transforming using Blockchain technology?
It’s evident that Blockchain technology has been around for a while, but it recently received more attention for its potential to transform various industries. In recent years, due to its benefits in the different sectors, it’s seen as the first choice for the gaming industry.
Some of the benefits of Blockchain that are helping transform the gaming industry and build blockchain games include:
Secure and transparent transactions
Blockchain is a secure, transparent, and immutable technology, ensuring no double-spends or fraud in transaction records occurs. It adds a layer of confidence to users when engaging in digital transactions and makes it ideal for games where users share sensitive data or virtual assets, such as in the case of NFTs.
Since Blockchain offers an additional layer of security by using encryption systems such as Secure Messaging and Two-Factor Authentication, it can protect sensitive data such as player information, game data, and user transactions from being tampered with or hacked.
Improved user experience
Blockchain can help improve the overall user experience by providing a more efficient, secure, and transparent way to engage in digital transactions and access virtual assets.
With blockchain gaming, users have more control over their gaming experience. This trend has manifested itself in several ways, from allowing players to create their characters, storylines, and even playing. Also, it enables them to download various video games in different versions from any location without risking their gaming experience.
A blockchain gaming platform helps ensure that all transactions and interactions between different parties are verified and legitimate. This helps prevent fraud, one of the most common challenges in modern-day gaming platforms. In addition to verifying transactions, businesses can also use Blockchain to guarantee that no individual or party has been paid twice for the same service or goods rendered since each transaction is recorded.
With the help of blockchain gaming, players can trade their items for profits or other resources. Since Blockchain creates a record of each item and its ownership, players can deal with complete confidence, knowing that their items will not be stolen or duplicated. It also allows them to sell or buy in-game assets from other players.
Players can earn rewards in the form of cryptocurrencies by completing quests and missions. In traditional games, players are rewarded with points that have no monetary value outside the game itself. But, with blockchain-based games, they can earn cryptocurrencies to use as real money to purchase items from other players or even buy products on e-commerce websites.
Creating integrated gaming profiles
As blockchain games are the new talk of the town, it is possible to create a centralized community where users can access different games. It allows users to have one profile that they can use across multiple platforms, thus enhancing their user experience and making it easier to access different games and purchase items.
Blockchain games have taken over the entire gaming industry compared to traditional gaming. While there are many benefits of using blockchain technology in gaming, there are some limitations as well.
Limitations of Blockchain technology in gaming
Nevertheless, the use of blockchain technology has provided new opportunities for various businesses but also created new challenges like:
The difficulty of playing crypto games lies not in their storylines but in the gaming process. To start a game, a player needs to set up a user account which is an easy step. Then, depending on the type of Blockchain game, a player needs to set up a crypto wallet and buy a certain amount of crypto making it a challenging task.
The use of cryptocurrencies like MANA, Theta, and more poses a challenge as regulatory bodies are still trying to understand how they function and whether or not they should be used in blockchain gaming.
The gaming industry is highly competitive, with new games and platforms constantly released. This can make it difficult for blockchain-based games to compete against traditional games.
There are numerous Blockchain-based games built in the industry. Now that you know about the benefits and limitations of Blockchain let’s provide real-world examples of top Blockchain games.
What are blockchain games? Some real-world examples
Blockchain games are simply video games that are created on the blockchain. In other words, they are placed on a blockchain, and the entire cluster of systems that is playing the game owns a copy of it. They allow the players to buy or sell cryptocurrencies, NFTs, or other elements of blockchain with other players over the internet. With about hundreds of blockchain games/cryptocurrency games in the market, a few popular ones include:
One example of gaming crypto video recreation is CrytoKittes. Launched in November 2017, it is one of the world’s earliest attempts to launch a blockchain-based game. Currently, it has become one of the most popular games built on Ethereum. The game’s main aim is to create a new generation of kittens with unique traits to maximize their value.
Players can trade their kitties through an open marketplace or store them till they get valuable. Each kitty’s personality is based on genes representing various traits like fur pattern, eye shape, mouth shape, base color, and accessory color.
When we talk about blockchain in gaming, Decentraland is the first word that comes to mind. Decentraland is a virtual reality platform that uses blockchain technology to create a decentralized virtual world. The platform allows users to create, experience, and monetize content and applications.
In Decentraland’s virtual space, users have permission to walk around and explore and buy various properties owned by other users. They can even pay to play games, join space adventures, enter clubs, and try out all the different experiences that builders worldwide would have ever dreamt of.
Gods Unchained is a collectible card game that uses Ethereum for its cards ownership tracking. Gods Unchained cards are digital assets that cannot be copied or modified without the owner’s permission, making them unique and valuable.
The Gods Unchained cards can also be traded directly between players without going through the game’s marketplace, and the Ethereum blockchain secures them, so they’re safe from hackers.
The Last Will
The Last Will is a blockchain-based game allowing users to inherit other players’ digital assets. The game is based on the Ethereum blockchain and enables users to make wills, set up trusts, and assign executors.
Another best example of blockchain in gaming is FIFAcoins4sale. It is an online marketplace that allows users to buy and sell in-game items for FIFA, a famous football video game. The website uses a decentralized marketplace that will enable users to buy FIFA coins without worrying about scams or fraud.
Some other examples of cryptocurrency games that are famous worldwide include Axle Infinity, Illuvium, The SandBox, Age of Rust, Mirandus, etc. They are some of the best crypto games that have redefined the world of blockchain-based gaming and have offered the players more control over their in-game assets
We have discussed a few real-world examples of how Blockchain is used in the gaming industry. As we can see, the blockchain and gaming industry run parallelly by improving user experience, making transactions more secure and transparent, and offering new ways to store digital assets.
Future of Blockchain in the gaming industry
The future of Blockchain in the gaming industry looks bright. With more and more businesses exploring blockchain technology, we can expect to see more games and platforms that use Blockchain in the future.
According to the reports, Web3 gaming is the ultimate future that will redefine the gaming ecosystem by offering the players ownership of gaming assets and the right to decision-making, further delegated away from a single central authority.
Major investors are now betting big on Web3 gaming. As per a recent report from Dappradar, August 2022 witnessed $748 million in investment for developing new Web3 crypto games. Thus, we can simply predict the future and how web3 in gaming will shape it.
It is vital to understand that web3 in gaming won’t really affect the quality of the game. It will simply open new opportunities for adding financial systems to the game. The underlying blockchain technology, further ruled by gaming cryptocurrency for secured payment rails, as well as ownership of digital assets, will help propel the gaming ecosystem to a whole new level.
Brands now radically need to develop new and better gaming scenarios for multiple gaming platform types and offer their players NFTs that are further distinguished and capable of increasing interoperability and trading. They need to comprehend that introducing new cryptocurrency games with robust gaming wallets will empower the gamers in the industry while offering them more control over their digital identities.
[You may like reading: How AI is Propelling the Gaming Industry into a New Epoch]
How can Appinventiv help?
Blockchain technology is becoming critical to the gaming industry, and it’s essential to meet technological needs. Blockchain allows real-time access to data on the network and has built-in security features that make it ideal for keeping records of financial transactions. Furthermore, investing in blockchain-based web3 gaming will allow the brands to stay ahead of the curve and offer their players an immersive experience.
At Appinventiv, we offer blockchain development services that can help take your gaming business to new heights. Our team of experts has extensive experience in blockchain technology and can help you create and learn more about Blockchain games that will engage and excite your users.
Get in touch today to learn more about our services and how we can help you develop blockchain games for your business!
Q. What are the benefits of blockchain gaming?
A. Blockchain-based gaming has not helped organizations to increase their gaming user base but offer advantages such as:
- Secured environment
- Greater control
- Smoother transfer of assets
- More immersive experience
- Better earning opportunities
Q. What are NFT games?
A. A Non-Fungible Token (NFT) is a digital and cryptographic token that is available on the blockchain and represents a unique item. An NFT game is a video-based blockchain game that uses NFTs in its decision-making processes, rules as well as mechanisms and is further available across multiple gaming platform types. The players can further trade NFTs with other collectors while exchanging tokens for the same.