The Ultimate Guide to Blockchain Gaming by Ayomide Adeleye

There’s no greater thrill than winning in a video game. But have you ever imagined a virtual world where every in-game asset you earn (or purchase) is yours, with the power to turn it into cash anytime? That’s what blockchain gaming brings to the table. It goes beyond just winning; it’s about owning your victories.

According to recent statistics, the global gaming market is expected to reach $244 billion in 2024. Indeed, the merger of blockchain and gaming introduces a whole new experience, offering players more control and real-world rewards.

This article explores this revolution, revealing how it enhances security and transparency and empowers users with true ownership and earning opportunities.

What is Blockchain Gaming?

Blockchain gaming is a concept that involves the integration of cryptocurrency into a video game’s design, ensuring digital asset ownership and interoperability.

Similar to crypto transactions, it securely logs ownership of in-game items onto an immutable public ledger. Users can own skins, weapons, and even virtual real estate that are worth real money. These items can also be tokenized as Non-Fungible Tokens (NFTs) with unique identifiers to verify their rarity and supply.

Exploring The Rich History of Blockchain Gaming

In the early days of gaming, computer access was limited to large institutions since they were expensive and huge. To enhance public interest in computing, early pioneers developed simple, engaging games like OXO (tic-tac-toe). Over the years, Spacewar was developed, the first game to be playable on multiple computers. This feature ignited the gaming revolution in the 60s.

Towards the 70s and 80s, new game genres emerged. These included Space Invaders, Pac-Man, and Donkey Kong. By the end of the 20th century, role-playing game fantasies like Final Fantasy 7 immersed gamers in virtual realms.

The early 2000s brought forth competition, with titles like Mario Kart and NBA 2K capturing the spirit of avid gamers. As the decade turned, sounds of war filled living rooms in strategic shooter games like Counter-Strike and Call of Duty.

As online connectivity and virtual worlds grew, interest in tradable in-game items and currencies sparked. Thus, game developers created robust in-game asset systems to enhance gameplay and multiplayer dynamics. In-game assets, ranging from skins and weapons to power-ups and tradable currencies, transformed the gaming experience.

As developers incorporated digital assets into their games, millions of players flocked to secondary markets to trade, buy, or sell these items. However, secondary markets highlighted a vital issue: players lacked actual ownership of their assets.

Despite spending billions on in-game items, gamers couldn’t retain or transfer their assets across games. Thankfully, blockchain gaming emerged to address these limitations, offering genuine ownership and the ability to earn value from in-game assets.

How Does it Work?

Despite its intriguing history, blockchain gaming may sound complex. However, it becomes much clearer when broken down into three main components: crypto wallets, smart contracts, and crypto tokens.

Crypto Wallets as Universal player IDs

Traditional gaming requires separate accounts for different gaming platforms (e.g., Steam, Epic Games). This can be a hassle for most individuals as they must keep up with and manage several profiles. This is where a crypto wallet changes the game completely.

This wallet serves as a login for all blockchain games. Rather than juggling multiple accounts, you can easily create a wallet that grants access to all blockchain games. This universal pass simplifies the gaming experience, making it seamless across various platforms.

Smart Contracts

Smart contracts are the heart of blockchain apps, and that includes gaming. These self-executing programs ensure that the game runs as expected at all times without needing an intermediary.

They also manage and move in-game items and currencies seamlessly. As smart contracts securely determine a game’s outcome and automate in-game transactions, the gaming experience becomes more reliable and trustworthy.

Crypto Tokens

Source: Chainlink. How blockchain game token economies work.

Digital currencies are a common feature in traditional online games. They are earned via quest completion, defeating bosses, or can be bought with real cash. Blockchain gaming tokens work similarly but with a significant upgrade. They are either fungible (like in-game currency) or non-fungible (unique items like rare weapons or skins) and stored on the blockchain.

So, when you earn an in-game item, it’s yours to keep, sell, and trade as you deem fit without needing permission. Beyond that, these in-game assets also serve as governance tokens. They empower players to participate in Decentralized Autonomous Organizations (DAOs).

Here, players are allowed to vote on game-related decisions. These can cover various aspects, from updates to new skins, thus giving players a voice in the game’s development.

Blockchain Gaming vs. Traditional Gaming?

Blockchain gaming introduces new changes that differentiate it from its traditional counterpart. Here’s a quick comparison:

Feature	Traditional Gaming	Blockchain Gaming
Ownership	Controlled by game publishers	True ownership via NFTs
Asset Trading	Limited or prohibited	Free trading on decentralized marketplaces
Monetization	One-time purchases or subscriptions	Play-to-earn models with crypto rewards
Interoperability	Items restricted to individual games	Assets transferable across different games
Security	Centralized servers	Decentralized, more secure, and transparent
Player Governance	Limited player influence	Governance through DAOs and token voting

Advantages of Blockchain Gaming

Blockchain tech has gained traction for its potential to transform various sectors, primarily gaming. The birth of blockchain gaming offers a few perks you should consider. They include:

Transparent and Immutable Transactions

Blockchain gaming ensures transparent and immutable in-game transactions. Every transaction is recorded on a decentralized ledger that is nearly impossible to alter. This means no double-spending or fraud, which benefits games with sensitive data or valuable virtual assets. Players can trust that their in-game purchases are safe and legitimate.

Enhanced Security

This concept protects player information and game data with advanced cryptography and multi-factor authentication. It ensures your data and in-game assets are safe from cyber threats, giving you peace of mind and allowing developers to focus on creating engaging gaming content without fear of security breaches.

Improved User Experience

Blockchain gaming enhances user experience as players gain more control over their gameplay. They can create unique characters and storylines and download games from any location without security compromises. This freedom and flexibility make gaming more enjoyable and accessible.

Earning Rewards

In blockchain games, players can earn cryptos as rewards for completing quests and missions. Unlike traditional game items, these digital assets can be converted to cash to purchase items from other players or buy products online. This play-to-earn model incentivizes players to engage better with the game.

Ownership of In-game Assets

Blockchain gaming also offers true ownership of in-game assets. These assets are secured through encryption on decentralized networks, making them harder to hack. This allows players to track their assets and transactions, thereby reinforcing their sense of ownership.

Integrated Gaming Profiles

Blockchain games allow users to access different games with a single profile. They also streamline the purchase of in-game items, further enhancing users’ experience.

Technical Limitations of Blockchain Games

Despite their praises and virality, blockchain games face several challenges that must be addressed. Here are a few of them.

Barriers to Entry

These game types often have a steeper learning curve than their traditional counterparts. Players need to set up crypto wallets and fund them with tokens to pay transaction fees. Additionally, in-game transactions can break gameplay immersion and create a less seamless experience.

Scalability and Game Lag

Blockchain faces scalability limitations, which have hindered the development of on-chain games. Video games also demand high computation and low latency, which blockchains cannot fully support. This often results in game lags, which affect the overall gaming experience.

Disconnected Ecosystems

The blockchain gaming system is fragmented across different protocols, such as the Ethereum, Solana, Polygon, and Base networks. With limited cross-chain communication, players may need different wallets to access an ecosystem’s games.

Examples of Blockchain Games

Blockchain games offer players true ownership of digital assets and new ways to earn real money while playing. Let’s delve into some popular examples:

CryptoKitties

Launched in November 2017, CryptoKitties is among the earliest blockchain games. Built on Ethereum, it lets players breed and collect digital kittens with unique traits. These traits (fur patterns and eye shapes) are represented by genes determining each kitty’s rarity and value. Players can trade their CryptoKitties with desirable traits on open marketplaces for profit.

Decentraland

Decentraland is a metaverse platform that allows users to create, explore, and monetize content and applications. Users can buy virtual land, develop properties, engage in games, social gatherings, and virtual adventures, and earn crypto rewards.

AXIE Infinity

AXIE Infinity is an anime-inspired game using NFTs. Each AXIE, a creature in the game, is unique and can be customized by players. Players can team up their AXIEs in battles and compete in various game modes to earn cryptos.

Gods Unchained

Gods Unchained is a collectible card game that utilizes the Ethereum blockchain for ownership tracking. Each card is a unique digital asset secured on the blockchain, which prevents duplication and ensures rarity. Players can trade cards directly and participate in competitive gameplay.

Enjin

Enjin is a blockchain gaming platform that integrates collectible items, like the Enjin axe and Minecraft items stored on Ethereum addresses. It offers a crypto wallet for players to manage and display their digital assets.

Embrace The Future of Blockchain Gaming

The future of crypto-based games wields potential and exciting challenges. Developers must find ways to attract traditional gamers, enhance data control, and ensure interoperability between games and networks. Notably, decentralized autonomous organizations can help govern these projects and promote broader adoption.

Additionally, gamers need to feel confident exploring these games and access incentives to stay longer in the ecosystem. Notably, they can also leverage Zypto to solve their decentralized payment needs.

The platform’s multichain gateway, Zypto Pay, facilitates frictionless and secure transactions. This innovative solution makes it easy for players to purchase, sell, and trade their in-game assets without a hitch. Download the Zypto App to experience innovative digital payments.

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