Blockchain Gaming development — How it can revolutionize traditional games?
The advancement in blockchain technology led to the emergence of new-age games that deliver engaging gameplay. In addition, it paves the way for potential revenue-generating sources for players & businesses using virtual assets (cryptocurrency & NFTs) to buy in-game collectibles for effective trading in the secondary marketplace.
What is Blockchain Game?
In a nutshell, a blockchain game can be any game that utilizes blockchain technology & its applications (Crypto, NFT, Metaverse, etc.) to rearchitect or optimize traditional games.
As per the estimate by MarketsandMarkets, the global blockchain gaming market will reach an astonishing $65.7 Billion in 2027 from $ 4.6 Billion in 2022 at an estimated CAGR of 70.3%. Stupendous investments in the blockchain gaming sector by tech giants like Samsung are the major driving factor behind this phenomenal growth.
Further down the line, some mesmerizing facts about blockchain games, their types, popular blockchain games, the future of the blockchain gaming market, etc., are described.
Important Facts on Blockchain Gaming Development in 2023
Some jaw-dropping facts that indicate the booming of the blockchain gaming market & the reason for its recent hype are given below.
- Among the blockchain activity, the blockchain gaming niche accounted for 52% of the interest (as per reports from DappRadar).
- According to Coin Journal, the blockchain gaming market generated a whopping $2.5 Billion in Q2 of 2022.
- Alien Worlds, the most popular blockchain game, recorded an average of 229.85k unique active wallets and is currently valued at around $80 Million.
- Axis Infinity, a blockchain-based game, witnessed a massive 2.78 million active gamers in January 2022 and generated a revenue of $1.3 Billion in 2021.
- Blockchain gaming investment will have reached a peak of $12 Billion by 2022, according to early reports from DappRadar.
What are the types of Blockchain Gaming Models?
Two major types of blockchain gaming model is an amalgamation of traditional gaming, crypto, NFTs, metaverse, AR, VR, etc.
They are
- Play to Earn
- Move to Earn
Play to Earn (P2E)
The P2E gaming model quickly became one of the popular trends in the NFT and crypto verse. Play to Earn Game allows users to earn in-game collectibles like Characters, weapons, vehicles, virtual land, etc., which can be exchanged for cryptocurrency. Axie Infinity and The Sandbox are some popular P2E games. In P2E games, the user can earn rewards based on their skill and performance.
The P2E gaming model can attract millions of gamers in a short time and the concept is expected to mature from a trend to reality with the advancement in tech like metaverse, AR, VR, etc.
Move to Earn (M2E)
Move to Earn is another aspect of blockchain gaming concepts popularized during the COVID-19 Pandemic. An innovative gaming concept that rewards gamers when they walk, run, or engage in other sports activities.
For every walk or move they make, they are entitled to earn in-game tokens or cryptocurrency. The M2E blockchain gaming model might mature into a FitnessFi ecosystem instead of GameFi because of its ability to create awareness and engage people in fitness activities.
MetaGym is the most popular M2E project that enables users to earn rewards or in-game tokens (MetaGym Coin) when they move while using its smartphone or smartwatch application. A player can exchange native currency or rewards for the cryptocurrency of choice.
What are the most popular Blockchain Games?
Current Popular blockchain games are
Alien worlds (Trillium) — NFT Metaverse platform enables players to collect & trade NFTs.
Splinterlands (SPS) — Best online collectible card game for trading NFT
Axie Infinity (AXS) — Biggest Blockchain game project to date
The (SAND) — Gamin ecosystem enables gamers to earn cryptocurrency.
Robot Era (TARO) — New-age P2E game with metaverse ecosystem.
Battle Infinity (IBAT) — Ecosystem of P2E earn crypto games.
Decentraland (MANA) — Blockchain & Metaverse gaming Innovator.
Daily new and unique blockchain-based games appear on the market, while only a few can reach the spotlight, lure dozens of gamers & generate revenue.
The next section covers the major factors that accelerate the mainstream adoption of blockchain games and states the reasons that hinder the growth of this ground-breaking gaming concept.
What are the factors responsible for the growth of blockchain gaming?
Factors that accelerate the growth of Blockchain games are
Decentralization
Traditional games are centralized, in which the player cannot own the in-game collectibles. Decentralized or blockchain games allow players to earn, own & trade in-game assets across various crypto-gaming projects. In addition, these games provide an opportunity to earn without any investment.
Security & Transparency
Blockchain security protocols like Data Encryption and their immutable nature are ideal for games that store user data or virtual assets (NFT). Further, the transparency of blockchain creates trust among the players & information or transaction can be verified and validated with ease.
Revenue Source
Blockchain games help the user generate revenue from numerous sources in addition to experiencing surreal gameplay. For instance, gamers can earn crypto or regards when they complete tasks or win a major tournament.
Further, blockchain games provide more control to players and enhance their gameplay since they allow them to create characters and storylines customize in-game assets, own, build & trade virtual lands, transfer gaming assets, etc.
Although blockchain games allow the player to create an integrated gaming profile that can be used across different gaming platforms for enhanced gameplay experience & trading, there are some drawbacks too.
Some key reasons that affect the adoption of blockchain games are
Regulations
Regulatory challenges are the main drawback of blockchain gaming emergence. Government regulations concerning crypto & NFT, etc., are nail-biting that might cause confusion among gamers and prevent the mainstream adoption of blockchain-based games.
For instance, high tax imposition on virtual currency by certain countries like India potentially restricts gamers from entering this emerging tech and harms the industry.
Complexity
Like traditional gaming, the player should create a profile for decentralized games. In addition, a player should connect the crypto wallet & buy in-game tokens to play the blockchain games while the rules & conditions (might be complex) differs from game to game.
Accessibility
Technological infrastructure in under-developed countries like Africa & banning of cryptos in a few nations is other reasons affecting the expansion of the blockchain gaming niche.
In addition, the lack of awareness of this innovative technology and its application prevents blockchain games from reaching the level they should have already.
What will be the future of Blockchain Games?
Modern games with blockchain applications like cryptocurrency and NFT enable players to trade, buy, sell, or monetize in-game assets in addition to a surreal gaming experience.
These next-gen blockchain games allow players to enjoy asset ownership, explore metaverse lands, and enable players to earn lucrative rewards or cryptocurrency for their time and skill.
Despite the limitations, the emergence of Web3 technology helps the gaming niche evolve into a next-generation gaming concept that merges metaverse, play-to-earn/move-to-earn gameplay, tech like AR, VR, etc.
The amalgamation of the above technologies will surely make a paradigm shift in the blockchain game niche, moving it from a recreation activity to a lucrative pastime for global gamers.
While the technology is still in the early stages, the global firm started exploring the potential of blockchain gaming development after witnessing its promising capabilities.
