The world of gaming seems on the verge of change, a change that is going to flip the entire industry. We are talking about blockchain gaming.
But wait, before you exit the article thinking “Oh here is another play-to-earn crypto scam” let’s dive deeper into the industry and find out the real-world impact of blockchain technology on mainstream games, not new cheap-looking play-to-earn games that were born overnight.
We are talking about big fish like Grand Theft Auto, Call of Duty, Counter-Strike, and others.
What is really blockchain gaming and how does it impact the world of video games? Will we see something different?
What Exactly is Blockchain Gaming?
First of all, let’s clear the air on Blockchain technology. I get it, the term sounds cool so it gets slapped on many different things, including scam projects that don’t deliver.
But blockchain technology is so much more than NFTs and play-to-earn games. It is a revolutionary technology that has the power to completely transform the video gaming industry.
Why? Well, as you probably already know, blockchain is a digital ledger specifically designed to authenticate, store, and secure digital assets. Can you already see where we are heading?
I’d say that digital assets are one of the most important elements in video games today. You create your character, earn coins, progress through the game, swap armors, find gear, unique skins, or many different gaming elements.
Now, at the moment, all of these things are basically code stored on the developer’s server. So, you buying your skin or weapon, doesn’t really mean that you own it. Yes, you can use it while playing the game, but that’s its only option.
On the other hand, blockchain does things a bit differently. Digital collectibles can be made as NFTs (non-fungible tokens) that you actually own on your private wallet address. So, you get something in a game that you own and can do whatever you want with it (sell it, trade it, or even rent it). That’s blockchain gaming for you.
So, all your skins, weapons, and other in-game elements will suddenly be worth something in the real world since they can be resold and reused for various purposes.
But is there a game like this? Well, at the moment, all blockchain-infused games are small, usually play-to-earn games that are not backed up by a triple-A game developer.
However, the rumors in the industry are brewing. We’ve already seen rumors that GTA 6 (that we all eagerly anticipate) will be infused with Blockchain technology in some way. I don’t know whether this is true or not, but it actually makes sense.
I think that Blockchain technology brings so many benefits to the video gaming industry, and the only reason why we still haven’t seen a big developer going on this path is because we still haven’t fully explored the capabilities of this technology.
But it is only a matter of time until blockchain technology comes knocking on the doors of the video gaming industry.
So How Does It Work?
In a blockchain game, every item or in-game currency is stored on a public ledger. This not only ensures transparency but also guarantees ownership. There are two major types of blockchain-based games:
- Play-to-Earn (P2E): You’re rewarded for your in-game activities with cryptocurrency or NFTs that can be converted into real-world value. Popular P2E games include Axie Infinity and The Sandbox.
- Move-to-Earn (M2E): A newer concept, where players earn rewards for real-life actions, like physical movement (think of it as combining fitness apps and gaming, rewarding you for staying active).
But… Is Blockchain Gaming All Sunshine and Rainbows?
Here’s where we sprinkle a bit of reality. As exciting as it sounds, blockchain gaming comes with a few risks that you need to keep in mind:
The Risks of Blockchain Gaming
1. Volatility
One minute you’re on top of the world, the next minute—bam—your assets’ value tanks. Cryptocurrency prices fluctuate wildly, and if you’re holding your earnings in a volatile coin, your riches can evaporate overnight.
For example, during the cryptocurrency market crashes in 2022 and 2023, the value of many in-game assets tied to Ethereum or other tokens nosedived.
2. Scams and Hacks
Blockchain is great for security… until it isn’t. The decentralized nature of blockchain gaming platforms makes them a target for hackers. In 2022, Axie Infinity suffered a hack that resulted in $620 million worth of crypto stolen. Scams are also prevalent in new, unverified games that can pull a rug (a scam where developers take all the money and disappear) faster than you can say “blockchain.”
3. Regulation Uncertainty
Governments are still catching up with crypto regulations, and blockchain games are no exception. Some countries are clamping down on these games due to their ties to gambling. What happens if you’ve invested in a game and suddenly it’s banned in your country? You could lose access to your assets altogether.
4. Technical Complexity
Blockchain games are not as simple to jump into as traditional games. Setting up wallets, understanding how to use NFTs, and navigating decentralized exchanges can be daunting for non-crypto enthusiasts.
So… Is Blockchain Gaming Worth It?
It depends on your goals. If you’re in it for fun and don’t mind the wild ups and downs of crypto, blockchain gaming can be a rewarding and innovative experience. However, if you’re solely looking for an easy way to make money, you might be in for a shock.