It was only a few years ago that blockchain became a downright buzzword. Like almost everything else under the sun, major corporations and small startups are trying to use the blockchain to revitalize everything from supply chains to healthcare. It offers a plethora of benefits that make it ideal for these, and now, blockchain gaming. Here’s why it’s becoming the new thing.
What is Blockchain Gaming?
There’s a new frontier in gaming, and it’s called blockchain gaming. This new type of gaming uses blockchain technology to create a more immersive, interactive, and secure gaming experience. But before we go further, we need to understand blockchain technology.
In simpler terms, blockchain technology is the system of recording data that makes it difficult or even impossible to alter, hack, or cheat this system. A blockchain is a ledger of transactions copied and distributed across the whole network of computer systems on the blockchain.
A blockchain game (also called NFT games or crypto games) is a video game with elements that use blockchain technologies. While playing these games, users can buy, sell, or trade cryptocurrencies or NFTs with other players. The game publisher, in turn, can get a fee from each transaction as a form of monetizing. This is what “play-to-earn (P2E)” games mean.
Why Blockchain is Shifting to Gaming
With blockchain gaming, players can earn digital assets stored on the blockchain. This provides a more secure and transparent way to keep and trade digital assets, as well as a way to track in-game progress. In addition, blockchain gaming also allows for more interaction between players and game developers. For example, players can provide feedback and suggestions that can help shape the game’s future.
What’s even more exciting for gamers is that blockchain gaming technology allows them to customize their gaming items. This means that they can develop their characters and make them one-of-a-kind. This uniqueness is a premium in the crypto and NFT world which is precisely what makes gamers gravitate towards blockchain gaming.
Blockchain technology will also allow for secure payment methods and a more efficient way to monetize games. Simply put, blockchain gaming is changing how games are created, played, and managed. Below is a list of the key drivers that pave the way for blockchain gaming:
- Monetization – when developers use blockchain, they can earn more by creating gaming services that are more efficient and provide safer payment options
- P2P transactions – peer-to-peer transactions are made easier with blockchain gaming thus, in-game trading of visual assets is possible
- NFTs – since blockchain is decentralized, meaning there are no intermediaries, gamers can own their NFTs, which they can regulate and control
- Play and earn – crypto games are the buzzword these days, thanks to blockchain gaming. Players can earn cryptocurrencies that they can trade for fiat currency
- Cloud gaming – cloud gaming technologies allow players to enjoy games on social media and mobile devices with more efficient storage and streaming capabilities
How Does Blockchain Gaming Work?
Blockchain gaming operates differently compared to traditional gaming, including PC, mobile, and console gaming. In 2020, the industry generated over $155 billion in revenues and is expected to increase in the coming years. While the creators and developers get the bulk of this, it offers little value for the gamers.
In traditional gaming, players spend a ton of money on consoles and devices. They also throw in extra cash for gaming environments and exclusive features to get a better gaming experience. In short, in traditional gaming, the money moves in a single direction.
Whereas with blockchain gaming, the focus is on generating value for the players. The players can get their hands on digital assets they can sell or trade, such as when you breed Axies in Axie Infinity. You can tokenize a game item which allows you to transfer it to make a profit.
Is Blockchain Gaming Profitable?
Yes, they are. As mentioned above, blockchain gaming adds value to a player’s experience. However little can you earn from these games, the bottom line is that you are having fun. We all know that this is the primary reason you’re into gaming. To get a fraction of a bitcoin while you’re at it is a special bonus.
In addition, the blockchain gaming industry has seen an increase in usage and investments. We’re talking about billions here in players and revenues, not to mention its growing popularity. While some games earn more than others, it’s also essential to know which are profitable and which aren’t.
Ways to Earn Money with Blockchain Gaming
Here’s a short list of ways that you can earn money from playing games on the blockchain:
- Develop characters – a great example of this is Axie Infinity, where you can develop and customize Axies to make them unique and highly sellable
- Loan your NFTs – earn passive income when you lend your NFT game items to other players and earn a profit from it
- Sell NFTs – most play-to-earn games also have marketplaces that you can use to sell your NFTs
- Enter tournaments – tournaments abound in the blockchain gaming industry. Level up your skill and enter these to earn more
- Farm – games such as SafeHamsters let players put funds to be integrated into the DeFi yield farming systems that earn them income from staking and liquidity provisions
- Be a game tester – game developers are always on the lookout for testers who will give them feedback that can help them improve the game
- Join guilds – Crypto Gaming United and others like it allow gamers to pool their resources, teach and learn, find the best games, and earn extra income
Blockchain gaming has indeed disrupted the gaming landscape. It has provided a ton of advantages, but it also carries with it a few risks. As with any other business or life endeavor, learning the ropes is essential before diving deep into the pool. While it is an exhilarating niche, treading with caution is also a requirement.