What are blockchain games?
Blockchain games are the newest trend in the world of gaming. What’s so special about this type of game? Let’s talk about blockchain gaming and how to start earning your own in-game assets.
Before diving into this course, you should have already read about:
At the end of the lesson, you will be able to answer the following:
What are blockchain games?
How do games use blockchain technology?
Why is blockchain gaming getting more popular?
How is Blockchain Gaming different from Traditional Gaming?
What are blockchain games?#Copy URL to this article section
Blockchain games, also known as NFT games or crypto games, are games in which blockchain technology has been integrated. Through blockchain gaming, players get to trade in-game items, resources, and tokens.
You may be familiar with traditional games that offer in-game customization options such as character skins or other items. Players can earn and trade these items with one another using in-game currency.
This is essentially how it works in blockchain games, too, except the trading of in-game resources is paired with cryptocurrency tokens that can be converted to fiat currency in crypto exchanges (i.e. DEX, CEX).
Some examples of blockchain games are Axie Infinity, VulcanVerse, WonderHero, and Cyball.
Example of blockchain games
How do games use blockchain technology?#Copy URL to this article section
Blockchain technology in games are commonly used through NFTs (i.e. character stats, weapons, skins, collectibles) and cryptocurrencies (i.e. in-game currency, resources). These items can be stored, traded, and used in transactions on the blockchain.
NFTs in blockchain games
Why is blockchain gaming gaining popularity?#Copy URL to this article section
Blockchain technology provides developers and publishers (e.g. Sky Mavis) with a modern and unique mode of money-making far from current traditional options (i.e. live-service, retail, freemium). These developers charge a transaction fee (taxes) for every transaction made on the blockchain through their service.
For consumers, on the other hand, blockchain gaming provides a platform to participate and earn. Additionally, it serves as a gateway for internet users to be introduced to the greater web3 ecosystem. It has the transformative power to turn average people into investors.
Early examples of NFT games are Etheria and CryptoKitties. The former pioneered what land ownership can be in the blockchain gaming space, while the latter introduced the current popular model of breeding NFTs. Both serve as references for NFT games up to this day.
The current model most Play-to-Earn games follow was popularized by Axie Infinity. The resources required for breeding (SLP & AXS) Axie NFTs can be earned by playing the game. These resources can also be converted into fiat currency in cryptocurrency exchanges. These earning mechanisms made it profitable for both the developers and the consumers.
An example of an Axie Infinity application homepage
How is blockchain gaming different from traditional gaming?#Copy URL to this article section
Gathering resources or currencies in blockchain games can be as easy as farming, battling, collecting, or winning in PvP (player-vs-player) content, but actually owning these resources in the blockchain is a different matter altogether.
A key difference between these two is the ownership of in-game assets, traditional games are sold in retail for a specific sum of money but the distribution and other management rights are kept by the publishers, alternatively microtransactions in the traditional live-service games model are determined by the publishers. Owning an asset in most games would mean you possess the game or in-game item but you won’t be able to manage the item that you have bought. Your ownership is limited to how much the developers let you do with that game or item. An example of this is how skins in Fortnite are not transferable and usable in a different title.
An example of limited ownership in games
Due to the decentralized nature of the blockchain, it enables both the developers and players to safely store their data in the blockchain. Any NFT purchases made by the end-user is permanently recorded on the ledger, this gives the entire transaction and assets traded the utility of provable ownership.
Without the need to manually research, check and verify all the transactional data, the developers can give the end-user ownership and asset management capabilities such as but not limited to: claiming tokens/resources, withdrawing, trading, listing on a marketplace, selling, bidding, auctioning, inventory management. Without the need to oversee all of the transactions personally.