Blockchain games are online titles built with blockchain technology. Numerous game companies develop blockchain games, which include casino games, video games, NFT games, and even Metaverse titles.
The technology that underpins blockchain gaming means that it differs significantly from traditional games in a few vital ways. The first is decentralization. Blockchain games are built and maintained by members of collectives (often called decentralized autonomous organizations – DAOs for short) rather than game developers from a single company.
Moreover, blockchain titles typically incorporate various elements and assets not seen in other games. They are often play-to-earn games with in-game assets that players can collect and redeem. This element allows players to earn crypto while playing such games.
How Blockchain Technology Works in Gaming
One of the foundational elements of blockchain gaming is monetization. These play-to-earn games give players access to in-game items, which can later be exchanged for crypto or real money.
As to how they work, blockchain games are built on blockchain technology. These games have embedded, self-executing smart contracts that deliver their outcomes. These smart contracts also help to provide crucial in-game functions and the movement of in-game items and currency.
The first mainstream game to use blockchain was CryptoKitties, which launched with much success in 2017. It marked one of the first uses of NFTs and Ethereum in the online gaming environment, and one virtual pet from the game environment was sold for $100,000. The launch of CryptoKitties evidenced blockchain’s potential for monetization in real time.
Today, other game developers like Square Enix have launched popular blockchain games to much fanfare, while the Sandbox Metaverse, built on the Ethereum blockchain, is one of the world’s most immersive blockchain gaming ventures.
Benefits of Blockchain Gaming
For Web3 users and advocates, blockchain gaming has many benefits, from improved security to cross-platform play. Let’s investigate some of the benefits of such games in this section:
Enhanced Security
To recognize the security of blockchain games, you need to understand how a blockchain works. Each chain comprises blocks, each with its own record of individual transactions. These transactions are stored on an encrypted ledger, which an outside party cannot alter.
Though blockchains are not 100% impenetrable, they are much safer and more secure than traditional gaming platforms, which can be targeted for weak spots by cybercriminals looking to make a quick buck.
Provided you (the player) keep your login information safe and store your crypto in a secure wallet, you shouldn’t encounter any issues while playing blockchain games. Playing such games is much more secure than entering traditional online gaming environments.
True Ownership of In-game Assets
As mentioned, one of the hallmarks of blockchain gaming is the ability for players to acquire in-game assets. This can range from NFTs to virtual land, while other games offer digital assets in cryptocurrencies.
By entering the blockchain game and playing with or against other players, anyone can earn native tokens, NFTs, or prizes. The gamers can then securely store these in-game items or perform secondary sales on crypto exchanges.
This is why these games are often called play-to-earn games. They allow crypto holders to earn tokens while enjoying and exploring immersive online worlds.
One of the most significant benefits of blockchain technology is that thanks to the smart contracts within the games, players can be sure of actual ownership of any in-game assets they earn. Players can then quickly transfer the assets to digital wallets or sell them at crypto exchanges.
Transparency and Fair Play
In addition to the enhanced security of blockchain games, these titles are much more transparent than traditional online games. An impressive feature of such games is that DAOs give all players a voice in the decision-making processes rather than the outcomes being at the sole discretion of the game developers.
Moreover, many crypto and blockchain games at online casinos are “Provably Fair.” This is a trust pact between the player and the game developer, with smart math and cryptography used to ensure the outcome of every game round is fair and verifiable.
This increased transparency helps build trust between blockchain game developers and those who play the titles on online platforms.
Potential for Earning Cryptocurrencies
All blockchain games offer players some form of in-game currency. This might be an NFT, a real-life cryptocurrency, or a virtual digital asset exclusive to the gaming environment.
No matter the form of the digital assets within the gaming platform, these virtual tokens are central to the play-to-earn model. Players can earn tokens or coins by completing tasks, levels, or quests within the game.
They can store this digital currency in the game itself or withdraw it to their digital wallets. Then, by visiting a secondary sales platform like a crypto exchange, they can sell the tokens for cryptocurrency.
A perfect example of this in the blockchain gaming sphere was the $100,000+ sale of one of the digital pets in the early years of CryptoKitties.
Interoperability and Cross-Platform Play
Another significant benefit of blockchain technology is its interoperability. This means that a blockchain game can interact seamlessly with another, increasing the potential assets market within any game’s ecosystem.
This feature also enables players to use digital assets acquired from one game in another, which delivers a much richer and more connected online gaming experience within Web3.
When blockchain games embrace cross-platform play, they can reach much broader audiences and significantly increase the asset pool. This creates more monetization options and enhances the game’s play-to-earn appeal.
Community-Driven Development
Single game companies release traditional games. In the online casino world, the likes of Pragmatic Play, NetEnt, and Play’n GO are responsible for many of the most well-known and liked titles.
In contrast, blockchain games are built and maintained by members of a decentralized autonomous organization (DAO). This allows for a broader confluence of ideas and design capabilities, raising the bar for creativity and game performance.
But crucially, in the online gaming sphere, it protects popular games from discontinuation or compromise from within. Many of the most popular traditional games are discontinued, much to the dismay of gamers, who can do very little to re-release them after the fact.
Blockchain games are decentralized and managed by various stakeholders, so the community must agree before a game can be shelved. Moreover, as nobody owns the game, future developers can resurrect an older blockchain game if they wish, which isn’t possible with traditional games owned by a studio.
Challenges and Future Potential
As popular as blockchain gaming is and despite the numerous benefits of this technology, there are some limitations to be aware of, which may inhibit the future growth of these games:
- Though they’re open to everyone, blockchain games are still a niche market. Players not experienced in Web3 or crypto may struggle to grasp the concept fully and be put off diving straight into blockchain worlds. For blockchain games to become fully mainstream, a broader acceptance and understanding of the technology and cryptocurrency is required.
- Currently, the graphics within blockchain games are nowhere near the quality seen in traditional games, often due to the complexity of the titles. Though many users look past this flaw, blockchain games can usually seem simpler and less appealing from the outset if you’re used to conventional online gaming.
- As many blockchain games currently reside on the Ethereum network, scalability is likely a potential barrier to future growth. When the Ethereum network is congested, lags and in-game delays are often reported, which can be a red flag among users. For true scalability, other platforms must adopt blockchain games.
- Transaction fees within blockchain games and at crypto exchanges will likely prevent people from cashing in on their NFTs and other in-game currencies. Also, transaction fees often increase when a blockchain network is congested or experiences delays or other issues.
- There’s a long-standing concern over regulatory issues relating to blockchain games, preventing many developers from jumping on board. The Securities Exchange Commission has become involved in regulating blockchain and crypto games, and regulations like the Howey Test have made it more difficult for developers to meet specific standards. Without standardized regulation, the regulatory landscape for blockchain games remains unclear.
Blockchain Gaming: Earn-as-you-play Gaming with Lots of Potential
Blockchain technology has transformed many sectors, and its impact on online gaming is highly impressive. The emergence of crypto games and the availability of in-game assets have added new dimensions to online gaming experiences, enabling Web3 users to earn crypto while playing some of their favorite titles.
Numerous DAOs have adopted blockchain play-to-earn models and are available at online gaming sites, the home of crypto gaming. Our site is home to some of the most exciting crypto games on the planet, and we support online gaming in BTC, ETH, USDT, USDC, MATIC, TRX, and BNB. You can deposit crypto to play at EVO in seconds for a secure online gaming experience.
While blockchain gaming has some limitations, and the evolution of such games is ongoing, we believe the benefits undoubtedly outweigh the cons. After all, blockchain games are decentralized, fair, and highly engaging, offering monetization that traditional games cannot. Now is the ideal time to get started with blockchain games and experience a new way of playing online.