Blockchain in Gaming

What is Blockchain?

A blockchain is a system that uses cryptography to link together blocks of data in a sequential manner. These data blocks on the blockchain are unique and immutable. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger. The decentralised database managed by multiple participants is known as Distributed Ledger Technology (DLT). The fact that each digital asset in blockchain games is unique is what distinguishes them from regular games. The Blockchain ecosystem uses cryptocurrencies, non-fungible tokens (NFTs), and?blockchain technology?to create a virtual gaming environment.

Are you not satisfied yet? Read more about the principles of the blockchain on?bitcoin.org?or watch this?video?on youtube.

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In this article, we cover the basics of blockchain gaming, common terms used in blockchain gaming, top crypto games and where we see the industry heading.

Blockchain gaming is currently taking the digital videogame world by storm. The role of blockchain in the world of gaming is growing all the time. Gone are the days where you visited a PlayStation shop to play PS2 games with your hard-earned pocket money without gaining anything. However, for many gamers, being online for fun is no longer their primary motivation. As the saying goes, time is money, and players have certainly noticed that they're investing a lot of money in virtual experiences with little return. As a result, they've begun to look for ways to monetize their skills. However, outside of the world of video games, there haven't been many opportunities for players to profit from their gaming efforts - until now. Gaming has gone through several business standards and is now becoming connected with blockchain technology.

In only a few short years, cryptocurrency has captured our imagination and changed how we think about and use money. As crypto has become more mainstream, game developers and players have started to take notice, developing games and playing-to-earn tokens based on blockchain technology.

To better understand what blockchain games bring to the table, let’s consider an example:

We can all agree that Temple Run is a successful game. It has been at the very top of the action game for years now. Millions of users play it every day.

In this game, a player engages in an endless running challenge, in which you will have to run while dodging all kinds of obstacles that you will find in your path. As you run while avoiding all types of obstacles, you will have to collect the most amount of coins possible. This is important because you can use the coins to buy many upgrades for your character, like magic and special skills, but you can't trade them for assets. It’s quite an investment of time and effort—both for players and game developers. Yet, player activity amounts to nothing; the developer controls all items, currency, and collectibles distribution.

Unlike in blockchain games, which allow players to use the tokens or assets that they have created or accumulated to be exchanged for fiat, e.g., earn or purchase NFTs, Once they do this, this asset is all theirs, and it has its own in-game value. From the moment they receive an NFT reward, players gain?full ownership?of these assets.

Imagine that you could own your digital assets and make some cool cash as a gamer from playing or developing blockchain games. Wouldn't it be great?

Well, that opportunity exists now, thanks to blockchain. In simple terms, blockchain games are games built on blockchain technology, which uses a decentralized model so that users own their game data and can use it across other blockchain games. Blockchain games are also knows as (crypto games or NFT games).

Meanwhile, players in blockchain games retain full ownership of their digital assets, allowing them to freely trade them with other players, sell them for real money, and potentially use them across multiple blockchain gaming ecosystems.

Key features of blockchain games include:

• True Digital Ownership
• Non-fungible tokens (NFTs)
• Interoperability
• Safety
• Decentralized Asset Exchange?
• Player-driven economy

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Now that you have a good idea of what blockchain games have to offer, let’s take a look at the terms and concepts used in blockchain gaming.?

Blockchain

A blockchain is a?decentralized public database?that primarily records network transactions and stores records of digital asset ownership. Blockchain technology enables blockchain games and other types of blockchain projects.

Crypto Coins

Cryptocoins are native cryptocurrencies of a particular blockchain that usually mimic traditional currencies. Cryptocoins are decentralized, which means they are not issued by governments or other financial institutions. For example, Ethereum, Dogecoin, and Bitcoin.

Decentralized Gaming

In the context of gaming, blockchain technologies enable games to become decentralized and allow players to have a say in how the game evolves.

Fungible Tokens

A representation of an asset on a blockchain that is interchangeable Cryptocurrencies are the prime example of fungible tokens because each coin has the same value as any other coin of the same type at any given moment.

GameFi

The term GameFi is a blend of two words: “gaming” and “decentralized finance." While it primarily refers to play-to-earn or pay-to-earn blockchain games because of the financial incentive, it has become an umbrella term for blockchain games in general.

Metaverse

The metaverse is most commonly imagined as a?collection of interoperable virtual worlds?accessed through a VR headset. At the moment, we have metaverse games like The Sandbox where players use avatars to interact with a virtual world.

NFT

NFT means non-fungible tokens?(NFTs), which are generally created using the same type of programming used for?cryptocurrencies. NFT can neither be replaced nor interchanged because it has unique properties.

Play-To-Earn Games

Play-to-earn games?are a type of blockchain game that allows players to earn digital assets that have real-world value and can be exchanged for cash.

Play-and-Earn Games

While play-to-earn games focus more on the earning part, in play-and-earn games, the?focus is more on playing?and having fun, while the ability to earn is an additional perk.

Also, read –?Crypto Gaming Tokens: A Complete Guide

Pay-to-Earn Games

Pay-to-earn games are similar to?play-to-earn games in the sense that they’re blockchain games that allow players to earn. However, the difference is that pay-to-play games require players to make a small investment?first (most commonly by purchasing an NFT).

Play-and-Own Games

Play-and-own, or "play-to-own" is another variation of play-to-earn games where the focus is on the gameplay and ownership of in-game assets with the goal of increasing the sustainability and stability of blockchain games.

The Best Blockchain Games

So, here are seven of the blockchain games I'm most excited about: It’s a tough job researching and reading a whole heap of games to find the best ones, but someone’s got to do it.

When adding games to this list, I’ve considered market capitalization, earning opportunities, the number of active users, and the game's overall popularity among players.

Sorare Fantasy Football

For football lovers, Sorare has brought the two together for the blockchain generation, and some of their collectable digital cards have already changed hands for eye-watering sums of money.

Gamers assemble a team of five players by buying cards at auction on the Sorare marketplace?or trading them with other players. Your fantasy team of five players will then win points depending on the performance of those players in real-life games. Gamers can win more cards or payouts in ETH if their team does well. ETH functions as the in-game currency, though gamers can fund their accounts with fiat as well.

The Sandbox

The Sandbox takes its lead from games like Minecraft and Roblox but seeks to concentrate power and ownership in the hands of its users rather than the developers.

It uses NFTs to enable users to own their creations and reward them for building and maintaining the game’s ecosystem. Players can buy and sell digital lands by using the "SAND" token.

Axie Infinity

Axie Infinity from Sky Mavis allows players to collect, breed, fight, and trade creatures known as "Axies." These creatures and the resources used in the game are bought and sold using AXS tokens (based on Ethereum) that are earned from playing the game. Through skilled gameplay, contributions to the ecosystem, and planting the love potions needed by Axe, players can obtain tokens.

Each Axie Infinity player collects Axies, which are NFTs that can be used to battle against other players. When players win a battle, they earn Smooth Love Potion, which can be sold for Axie Infinity Shard tokens. Axies can also be traded, bred, and collected.

As of July?2022, AXS is worth $15.64.

Decentraland

Decentraland is one of the dominant platforms. Built on Ethereum, it works in a similar way to its big rival, with users buying up land to develop and monetize as they see fit.

Part of the genius of Decentraland is how it mimics real life while giving its players far more control than they’d get outside of the metaverse. LAND holders can sell advertising space, lease their digital real estate out to others, or use it to host paid-for experiences, all of which are mostly beyond the scope of folks like us in the big bad world. Decentraland users must own Ethereum and be able to purchase?MANA?currency.

As of July?2022, MANA is worth $0.9255.

Neon District

Sci-fi dystopias are another recurring theme of blockchain games, and Neon District?is one of the best in this niche. This RPG has a cyberpunk theme and sees players battling enemies in Unity City.

Players fight their way through Unity City, picking up new skills and unique pieces of equipment, all represented by good old NFTs. These can then be traded in the game’s marketplace, where ETH is once again the main currency, while some are changing hands on third-party sites like?Rarible.

Solitaire Blitz

Another Joyride mobile game that appears in the play-to-earn game top charts is Solitaire Blitz.

It’s just like regular Solitaire, but with a twist: players can earn RLY?by winning PvP matches and tournaments.?

Splinterlands

Splinterlands is another of the best play-to-earn blockchain games, often found in the top lists of crypto games with the most active players.

Put simply, this is a?digital collectible card game?with rapid one-on-one battles, similar to Magic: The Gathering Arena or Hearthstone. However, unlike other digital card games, in Splinterlands, players own their cards. The goal of the game is to build up collections of cards with various statistics and use them to battle other players.

Furthermore, Splinterlands provides players with multiple earning opportunities. Players can also trade, sell, and even lease their cards, which is another way of earning in Splinterlands.

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To start playing blockchain games, you can register on popular gaming platforms like?SportBit, Axie Infinity?and?MegaFans.

To begin playing blockchain games, you will first need to own cryptocurrency. Most games will require you to purchase their cryptocurrency token or in-game NFTs to get started. You will also need to research about the kinds of games you would find fun, and understand the game protocols and regulations because each game's requirements vary from game to game, but you should always consider the earning potential and overall risks.

There is also the risk that you may lose some of your tokens or cryptocurrency. Make sure to estimate how long it might take to get your initial investment back and start making profits.

Read more about advantages and disadvantages of blockchain gaming here.

Final Take

The growth of blockchain games is increasing, and more growth can be seen in the future. It’s because blockchain games are play-to-win games. You can earn money while playing by trading in-game.

A new gaming model called "free-to-own" is emerg ing in the world of blockchain gaming technology. One of them is Free to Play to Earn (F2P2E), where you can play free play-to-earn games for free. Many gamers think it’s too expensive to play play-to-win games compared to the risk. In these games, the game is supported by external income or paid content. As more players experience actual digital ownership of their gaming assets and the ability to profit from gaming, the popularity of play-to-earn games will soar. Recently, I heard about an amazing NFT game platform called Metaspace. The game will definitely have a big impact on the industry and will challenge all blockchain games. When players have the chance to start out playing for free, it will attract a larger crowd. Also, as the “metaverse” and virtual reality continue to enter the mainstream, they will accelerate this trend.