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Blockchain is often seen as just a way to handle secure payments and invest in cryptocurrencies.
However, blockchain technology has led to many innovations in different industries.
One niche where blockchain is making a big impact is gaming.
Blockchain games, also known as crypto games or play-to-earn (P2E) games, are changing how digital entertainment is created, played, and monetized.
But what are blockchain games, and why are they attracting so much interest?
At Konvoy, we’re all about venture capital in gaming, so we put together this guide to help you out with your questions.
Blockchain games are basically video games that use blockchain technology to manage or create certain parts of the game.
They are sometimes called crypto games, NFT games, web3 games, or metaverse games, depending on how they use blockchain.
What sets this type of video game apart is its decentralized control, transparency, and true ownership of in-game items and achievements.
Blockchain games are different from traditional games but offer their own elements and therefore benefits.
With this technology, all types of games, from small indie games to large MMOs will change.
In traditional gaming, the items you collect are usually stored on a server managed by the game’s developer.
You might spend many hours earning a rare sword or a special skin, but you don’t really own it.
If the game ends, your items vanish.
In blockchain games, your assets are saved on the blockchain, and you own them.
Items like characters, skins, weapons, or virtual land are often represented as non-fungible tokens (NFTs).
NFTs are digital items stored on a blockchain, making it possible for players to actually own, sell, trade, or use their in-game stuff across various games or platforms.
Even if the game stops existing, you still keep your NFTs and cryptocurrencies.
Not long ago, you could earn some money from your gaming skills, but it wasn’t part of the game itself, but from third parties.
One important feature of blockchain games is that you can earn real money while playing.
You can collect rare NFTs or in-game cryptocurrencies.
You can sell these on secondary markets for cash, which gives you a real reason to play.
Popular games like Axie Infinity, Decentraland, and The Sandbox have shown just how profitable these play-to-earn models can be.
Blockchain games can be set up to be partially or fully decentralized, which means all the game data and rules are saved on a blockchain instead of on central servers.
This gives players more control over their goods and helps avoid issues like server crashes or the game getting shut down by developers.
Imagine using a sword you earned in one game in another game, or seeing a character you leveled up appear in a completely different virtual world.
While we are still in the early stages of making full connections between games, it is possible.
The transparency of blockchain lets anyone verify game results, transactions, and asset rarity.
This prevents claims about rigged loot boxes or unfair gaming odds.
On the other hand, smart contracts enable automatic transactions based on set rules, building trust without needing middlemen.
Once assets are recorded on the blockchain, they are permanent and cannot be changed without agreement.
Dapp Radar reports that there are usually over 20 million daily gaming transactions across different blockchain platforms.
This might surprise you, but for instance, in Axie Infinity, players can breed and train NFT creatures and sell them for cryptocurrency.
While few players will get rich this way, many find the earning potential appealing if they enjoy gaming.
Blockchain games are giving developers fresh ways to gain money, which means we’re seeing more projects pop up, including some big AAA titles.
Blockchain gaming is still new, but traditional gaming companies like Ubisoft, Square Enix, and Epic Games are showing interest in it.
As the industry grows, future blockchain games will likely mix traditional gameplay with the benefits of decentralized ownership and new economic models.
Plus, the future of the metaverse, could really amp up blockchain gaming.
Venture capital firms and angel investors are also interested in investing in startups using this tech.
The potential of blockchain games lies in the future, but we already see useful features that make the technology more enjoyable and practical, allowing players to earn money from their gaming skills.
We just gotta keep waiting and seeing how this tech develops.
To stay updated on the future of blockchain games, follow top gaming newsletters like Konvoy.
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