There are huge chances you must have heard about blockchain technology, cryptocurrency, and NFTs. Blockchain gaming is another on this list of the technological advancement seen in this age.
Cryptocurrency and non-fungible tokens are both built on the blockchain which makes them decentralized. With the latter [NFTs], you have ownership of your creation which cannot be destroyed or edited.
Blockchain gaming includes elements that use blockchain technologies, cryptocurrency, and NFTs. Along with NFTs, blockchain has grown in our world in the past couple of years. According to the DappRadar Q1 report, the blockchain gaming industry grew 2,000% and has attracted over $2.5 billion in investment.
In this article, we’ll discuss blockchain gaming and the important things to know about it. Before then, let’s know more about blockchain and its elements.
What is Blockchain?
A blockchain is a distributed database that is shared among the nodes of a computer network. It is a shared database that is different from a typical database in the way its store’s information. Blockchain store data in form of blocks that are then linked together via cryptography.
Blockchain can be used to store different types of information but the most common use so far has been as a ledger for transactions in cryptocurrency.
Although blockchain is mainly known for its role in the cryptocurrency system, it has several other functions which include in gaming.
Related Content- Top 10 Industries Blockchain Will Disrupt
What is Blockchain Gaming?
Blockchain gaming is an aspect of blockchain technology that has elements of cryptocurrency and non-fungible tokens in games. Blockchain gaming uses NFTs to create different parts of the game, such as rules, characters, weapons, and skins.
Today, people are interested in the idea of having games and digital assets on blockchains. Blockchain gaming has been profitable for game players and companies. Some of these games also allow for the trading of virtual items using traditional currency [not allowed in all regions].
Axie Infinity is one of the biggest gaming companies that incorporate gaming on blockchain. Players can get monetary value for their parts while the game company has their assets being put to use for rewards too. It is simply a way for gamers to make money.
Although blockchain gaming has interesting features and several opportunities, it is not without risks.
Top 3 Things You Need to Know About Blockchain Gaming
As cryptocurrency is growing despite its issues, blockchain gaming is also having a place in our world today. Here are three things you need to know about the world of blockchain today.
1. Blockchain Gaming is in its Developmental Stage
Blockchain gaming is still developing like several other crypto-related activities. It has had its ups and downs at this stage.
It is important to know that money is pouring into blockchain gaming. There are over $2.5 billion has been invested in blockchain gaming and has been predicted to reach $10 billion by the end of 2022.
Despite these numbers, blockchain gaming has been affected by hacks. As reported, a total of $622 million has been carted away by hackers from the Axie Infinity in 2022. This made the company lose some of its users and put a dent in the industry.
The issue of hacks on crypto networks is not in blockchain gaming only but in the entire crypto industry. However, other challenges such as crypto onboarding, gaming infrastructure, and tournament software—are blessing in disguise.
2. Users/Gamers Earn While Playing Games
Play-to-earn gaming has become a hot topic in the industry today. Many people in the world now especially in countries such as the Philippines, Argentina, Brazil, and other Asia & Latin American nations make it a source of living. Axie Infinity and Decentral Games are top on the list of platforms used by these gamers today.
P2E gaming has become an alternative career in many of these developing nations. As a result of this, the future is predicted to be bright in this aspect of technological advancement.
3. Critics Don’t want NFTs in Games
Although blockchain gaming has elements of non-fungible; players, developers, and companies have criticized it. For example, when GSC Game world announced its plan to have NFTs on its platform, players were against it. The company quickly canceled the plan.
The pushback from the addition of NFTs in games due to their volatility has been immense. For this reason, gamers don’t want NFTs in games but to have fun which is the priority.
Top 5 Blockchain Gaming Companies
Listed below are the top blockchain gaming platforms.
1. Axie Infinity
This is a non-fungible token-based online video game developed by the Vietnamese studio Sky Mavis. It is known for its in-game economy which uses Ethereum-based cryptocurrencies.
Players collect and mint NFTs which represent axolotl-inspired digital pets known as Axies.
The Sandbox is a 2D sandbox game for mobile phones and Microsoft Windows. It was developed by the game studio Pixowl and released on May 15, 2012.
Players could make in-game items by using the game’s toolbox and then sell them, using a game-specific cryptocurrency, to others who could display them in their virtual landscape.
Ubisoft is a French video game company headquartered in Saint-Mandé with development studios across the world.
Its video game franchises include Assassin’s Creed, Far Cry, For Honor, Just Dance, Prince of Persia, Rabbids, Rayman, Tom Clancy, and Watch Dogs.
4. Mojang Studios
This is a Swedish video game developer based in Stockholm. The studio is best known for developing the sandbox and survival game Minecraft, the best-selling video game of all time.
5. Square Enix
Square Enix is a Japanese entertainment conglomerate and video game company. It is best known for its Final Fantasy, Dragon Quest, and Kingdom Hearts role-playing video game franchises, among numerous others.
Blockchain gaming is growing rapidly in our world today. Although it has its challenges which include hacking, scams, and volatility, like crypto, it is predicted to have more roles in the future.