The State of Blockchain Gaming: A Comprehensive Overview
Learn about the potential of blockchain gaming, how it provides ownership of in-game assets and transparency. Explore the most exciting projects and the future of this industry.
Blockchain technology is gaining a lot of attention in various industries due to its ability to provide secure and transparent transactions. One such industry that has started to explore the potential of blockchain is gaming.
If you're tired of games where you feel like you don't truly own anything, or where shady practices make it impossible to compete on a level playing field, then you'll love what blockchain gaming has to offer. With this technology, you can finally own your in-game items and even sell them for real money. Plus, everything is transparent and fair, so you can trust that the game isn't rigged against you.
Let’s take a deep dive into the world of blockchain gaming, all the exciting possibilities it offers and the most interesting projects in this field.
What is Blockchain Gaming?
Blockchain gaming is a new concept in the gaming industry that integrates blockchain technology into video games. It uses elements of blockchain, such as NFTs and cryptocurrency, to allow players to truly own and trade their in-game assets like weapons, clothes, and vehicles.
The use of blockchain in gaming also provides several benefits such as ensuring transparency, fairness, and creating new revenue streams for game developers.
From Trading Cards to Strategy Games
Right now, most of the popular blockchain games are trading card games, virtual pet games, or strategy games where you build up your character and compete against other players.
The cool thing about blockchain games is that your in-game assets, like weapons and clothes, actually have value outside of the game. This means you can trade them with other players and make some real cash. That's why they call it GameFi – it's all about the game and finance combined.
One of the most popular blockchain games is CryptoKitties, where players can buy, sell, and breed digital cats on the blockchain. Another popular game is Axie Infinity, which features adorable creatures that can be collected, bred, and battled against other players.
Other blockchain games like Gods Unchained and The Sandbox also offer players the opportunity to collect and trade digital assets that are backed by blockchain technology.
These games have attracted a large following of gamers and blockchain enthusiasts alike, and their popularity is only expected to grow in the years to come.
The Blockchain Gaming Right Now
Like the whole crypto market, GameFi had a bit of a slump after the huge success it saw in 2020 and 2021. At the moment, we’re back in the builders phase at the bottom of the market.
Nowadays, blockchain games are available on all sorts of blockchains, not just Ethereum, Polygon, and BSC. Other dedicated blockchains like ImmutableX (IMX) offer developers low or even zero-gas fee solutions. This should help with the speed and sustainability of blockchain gaming in the next phase.
One big problem with blockchain gaming is that the gameplay experience is pretty lame so far. There are plenty of talented and experienced gaming developers working in the industry, but it might take some time to get the experience just right for traditional gamers.
Luckily, major Web2 gaming companies such as Ubisoft, Square Enix, and Atari are now looking to enter the space by forging partnerships with Web3 projects. According to a report from Metaverse Post, gaming took the lion's share of $4.5B (62%) out of the $7B raised by Web3 startups in 2022.
Animoca Brands has already invested in several Web3 startups, including The Sandbox (SAND), Crazy Kings, and Crazy Defense Heroes. Other major game developers joining Web3 include Atari and Square Enix.
While some Web2 gaming companies remain unsure about the benefits of Web3, we are witnessing a growing trend in the industry towards embracing the technology.
The Future of Blockchain Gaming
Consulting firm MarketsandMarkets predicts that the global blockchain gaming market will grow from $4.6 billion in 2022 to $65.7 billion by 2027. Meanwhile, Naavik and Bitkraft Ventures predict blockchain gaming will become a $50 billion market by 2025. Wowza!
But it's not all sunshine and rainbows. While GameFi accounted for 49% of all DApp activity in 2022, according to DappRadar, there are still a lot of problems to overcome. For one, no one knows exactly how tokenomics should work. And many gamers are sceptical of crypto games, thinking they're just scams or greedy attempts to make more money.
Blockchain gaming is a rapidly growing industry that offers players the opportunity to truly own and trade their in-game assets. It provides benefits such as transparency and fairness while creating new revenue streams for game developers.
Although the gameplay experience is still lacking, major Web2 gaming companies are starting to enter the space, which shows a growing trend towards embracing the technology. Predictions show that the global blockchain gaming market is expected to grow exponentially in the coming years.
there are still challenges that need to be addressed, such as the uncertainty around tokenomics and the perception of crypto games as scams or greedy attempts.