Contact us anytime to know more — Amit A., Founder & COO CISIN
Gaming assets with guaranteed ownership are propelling industry growth. blockchain gaming industry investment has seen a 2,000% surge, drawing $2.5 billion.
Although many companies are rushing into this space, its development still has some limitations that need to be addressed. So, how exactly does blockchain support the gaming industry? Allow me to explain it.
What Is Blockchain?
Blockchain is similar to a spreadsheet, with certain restrictions. Users can add data but not delete any entries, meaning all your entries will be preserved forever and allow you to own your information.
Second, each block is cryptographically linked with its predecessor entry to preserve history. A new entry should either contain its unique digital fingerprint (hash) or link back to an earlier one.As each fingerprint connects with its predecessor, they form an unfolding chain of events or chain of cause and effect.
Blockchains are inalterable. Even if a hacker managed to gain entry and change data on the blockchain, their fingerprints would change with each record, making their manipulation evident - no information changes without being noticed!
This digital ledger allows users to keep records and enjoy secure transactions, providing peace of mind for new startups and players who seek NFTs and cryptocurrency to trade for real money in-game - such as Axie infinity, CryptoKitties or #EtherLegends on Ethereum, which have earned millions.
Game developers and players can exchange their holdings through trusted exchanges such as Kraken or Coinbase into cash or withdraw at a crypto ATM.
How Does Blockchain Technology Work In Gaming?
Blockchain provides interoperability within the gaming industry. Your character can serve as your unique identity across all blockchain games; when stored on it, any user can claim ownership and brand themselves as its owner.
Royalties earned and in-game items like game coins will be saved for future rounds. Master players can unlock higher levels using these in-game resources.
Furthermore, these assets can be tracked under their ownership.
Blockchain has enabled micropayments for gaming, but those passionate about winning and wanting to play for fun still seek collectables or trophies as incentives to continue playing.
Companies hire players based on passion and skill; milestones achieved can be shown off. Video gaming is expected to become part of future Olympic competitions due to growing gaming industries in SaudWe Arabia, the United States of America and the United Kingdom.
Blockchain guarantees a fair game by setting laws which cannot change and all players adhering to them.
One cupful is all it takes to witness the brilliant promise of blockchain! Here are a few additional items for consideration on your list.
-
Transparent and Secure
Levan Kvirkvelia, founder of Jigger, an anti-bot software solution. Recently, he reported that 40% of players in web3 games are bots; most games use bot accounts as an increase player numbers strategy.
Blockchain provides transparency by not permitting double spends or double spend reporting services. It has strong gaming communities that help players report issues quickly and take ownership in digital transactions - as well as offering safe trading environments using NFT characters or domain names to secure assets shared between players.
-
Enhanced Security
Blockchain is an encryption system designed to safeguard a user's identity and name, with their domain name appearing alongside their identification.
For added protection, two-factor authentication, secure messaging and player sharing of personal information are utilized by this system - providing players with more options in sharing personal data, game data or transaction details without fear of hacking attempts, data tampering or manipulation occurring.
-
Improved User Experience
Blockchain gives players more control over their gaming experiences. Users can create characters and domain names to use across multiple gaming platforms.
Players can create profiles and strategize games by breeding characters - it's like building an army yourself! Users can even remotely access in-game resources without risking their gaming experience.
-
Verification
Modern gaming relies heavily on assets to complete missions successfully. Players require props, guns and characters as they enact missions; art plans, cars, props, and prop models are also necessary - these rare assets can be bought with real money (similar to purchasing something on eBay with MasterCard) or acquired as players progress further into levels.
Players have two ways of unlocking additional in-game items - working hard or paying with credit. Either way, transactions must be verifiable and legitimate; blockchain allows this through tokenizing assets, which enable authenticated verifications; this ledger, which is freely available for inspection, also increases trust by creating an open market with transparent books.
-
Earning Rewards
A Rewards account, part of a digital wallet, allows you to store or transfer crypto while earning rewards. Staking pools provide opportunities to do just this: lock some of your holdings for a specific period to earn stake rewards - although cryptocurrency used as stake rewards can be volatile; alternatively, you could opt for dollar-pegged stable currencies like USDC or Dai.
-
Creating Integrated Game Profiles
Blockchain application provides a better alternative to interactive gaming communities where players can express their opinions.
Players can participate in these communities using their game profiles; game developers may hire some gamers to review games or engineer an immersive gaming experience, providing valuable contributions to game development. Players can access their profiles across platforms without fear of identity theft.
Blockchain gaming offers many advantages over traditional gaming, yet it has some drawbacks as well.
Blockchain Technology And Gaming
Users should be aware of all aspects of blockchain. We have listed some to give you an idea.
Entry Bars
"Play to Earn" has attracted specific markets looking for passive income streams. Entry fees that each player must pay to log onto the game prevent them from testing out different platforms; newcomers may find paying for each game costly.
Players will have to struggle against game bots until crypto economies take shape, which means organic traffic must be allowed on your site for players to engage.
Later, winnings may be converted into real cash; most players desire this freedom as it leads them closer to becoming passionate participants in your network. Converting every win and loss into rewards could have dire repercussions. It may result in the departure of passionate participants from your platform.
Complexity
The challenge lies in gameplay: users must first create an account. While creating an account shouldn't be difficult, depending on which blockchain game the user wants to participate in, they may need to purchase some amount in cryptocurrency.
MasterCard's Web3 authentication could allow for fiat payments but only applies to specific platforms like League of Legends.
Examples Of Real-World Blockchain Games
The market is flooded with blockchain games, but We will keep this short to ensure that you retain the information.
CryptoKitties
Crypto Kitties is one of the first blockchain-based games released , enabling you to pet as many cats as possible.
Built on Ethereum, players can breed unique cats for maximum value creation.
Players have two options for trading or keeping their cats: sell them on the open market or keep them until their value rises significantly.
Each cat embodies various traits such as eye shape, base color, accessory color and fur pattern, and mouth shape to give it character.
Blockchain Is Transforming The Gaming Industry
Recent market fluctuations have taken their toll on digital assets. However, many experts predict this winter of technology will usher in an explosion of NFT.
Tesla recently accepted Bitcoin as an alternative payment method, while MasterCard announced support for web3. Blockchain games offer players the chance to become programmers while creating and selling weapons, characters or accounts without entry barriers being established - giving players endless possibilities! While Blockchain may still be a relatively new technology, there are plenty of things for players interested in gaming careers to discover.
Blockchain Games
Future Trend
Blockchain gaming has grown due to transitioning from centralized traditional games to blockchain-based ones.
Traditional games don't allow players to transfer in-game assets such as characters, skins and weapons between gaming projects. Blockchain gaming enables players to own their digital assets and use them across crypto gaming platforms; additionally, it provides opportunities to earn real-world cash through Play-To-Earn features.
What Do The Data Show?
In 2023, the blockchain gaming industry and metaverse saw remarkable expansion. Funding increased 59% year-on-year according to a report by and Blockchain Game Alliance, showing Web3 gaming raised $7.6 billion total - of which $2.54 billion went toward infrastructure projects - along with rapid increases in on-chain blockchain transactions by 37% year-over-year Virtual land sales increased 136% for total revenues of $1.45 billion.
In Game Economy
Blockchain-based games offer players an engaging gaming experience and new opportunities. Unlike traditional gaming, where items and investments in the game only have limited value and players do not own any, blockchain gaming provides increased engagement and an entirely different experience for its participants.
Blockchain can bring many advantages to gaming, such as increased security and real-time ownership for real rewards players earn.
This new level of engagement will boost market growth while altering how people view gaming. Future blockchain developments will likely become even more captivating as more games adopt this technology and take advantage of it.
In years past, players have purchased, sold and traded virtual assets within video games. According to reports on gaming industry spending habits in America - $ 38.8 billion on video game content alone! However, players do not own these assets directly - blockchain technology now gives gamers confidence that their in-game assets will hold value in future; simply verifying authenticity using blockchain allows for easier verification.
EverDreamSoft, a Geneva-based game developer, recently took steps to "blockchain size" collectable cards within its Spells Of Genesis CCG.
EverDreamSoft recognized that gamers spend so much time collecting cards, loot and crates that this is an effective way to offer tangible returns for all their hard work.
Challenges
Regulations
Regulatory challenges are impeding the expansion and potential of Blockchain gaming. Govneed clarifications remain confused about NFTs and cryptocurrencies, potentially dissuading developers and gamers from fully exploiting this technology.
India's recent introduction of a 30% tax on digital assets has harmed blockchain gaming; players may now be taxed for cryptocurrency income generated through in-app purchases and rewards, which could discourage participation altogether and endanger its future growth as an industry.
Gameplay Awareness and Accessibility
The lack of public awareness surrounding these technologies has prevented their widespread adoption in gaming. Most individuals still need help understanding how blockchain works despite its intriguing technology; its adoption has thus not reached its potential; companies looking to use it entirely require staff with deep knowledge of blockchain networks and apps.
Some individuals may be familiar with blockchain and NFT but need help understanding their benefits. As a result, their lack of awareness limits how people perceive blockchain games; recent survey results reveal that 40 percent of gamers in the US, UK and Indonesia were interested in these titles despite limited awareness about blockchain tech; for this potential to fully materialize, it would require increased efforts at public education about its advantages.
Blockchain Games: Activity growth
The blockchain games industry has experienced rapid expansion and widespread appeal. Recently, unique active wallets (UAWs) engaging with blockchain gaming has increased significantly; according to data compiled from cisin, a platform which helps discover dApps which help track usage statistics, reveals this trend.
UAWs (Unique Audience Watchers) are one of the key metrics used to assess the popularity of blockchain-based games.
As more wallets interact with a game on platforms like cisin, its ranking and UAWs rise accordingly - providing ample opportunities for growth of the cryptocurrency gaming market overall.
Blockchain-based games have seen their NFT sales soar alongside an increase in player count, reaching USD 2,32 billion for sales during September 2023 - or 22% of all NFT trading within the industry! Alien Worlds and Splinterlands were two Web3 titles which generated NFT sales during this time.
Blockchain gaming saw some remarkable advancements during the third quarter of 2023. Alien Worlds became the most played game with an average daily unique active wallet count of 190.770, an increase of 14% since last quarter; Splinterlands retained second place with UAW totalling 159,522, representing a decrease of 47% compared to the prior quarter.
These numbers reflect the rising popularity of blockchain gaming and tournament events' impact on daily active users.
Traditional Web2 Studios Actively Exploring Blockchain Games
Wildlife Studios, the developer of Castle Crush, a web2 mobile app with over 50 million downloads, has integrated blockchain into its game ecosystem.
This allows players to experience NFTs as well as in-game rewards. Wildlife Studios has used blockchain technology to consolidate a progress system for the game by using the NFT loot box.
Netmarble (the studio behind NWe no KunWe Cross Worlds, Monster Arena and NWe no Kuni: Cross Worlds) has launched a blockchain gaming eco-system, MBX and a Blockchain wallet, Marblex Wallet, to enable a seamless experience and game economy in its web2 games.
Com2uS integrated blockchain technology into its smash-hit Summoners War Chronicles, a traditional game grossing US$1.4 billion.
The studio also launched C2X, its blockchain gaming platform and NFT marketplace, to promote interoperability among its web2 game franchises.
Square Enix, developers of the Final Fantasy franchise, has partnered up with Oasys Gaming Blockchain to become one of its validators.
Square Enix is a pioneer of blockchain technology, transforming it into an environmentally friendly and scalable web3 gaming solution.
Blockchain Games - Ethereum
Ethereum is the leader in the rapidly growing blockchain benefits gaming industry.
By 2023, ETH will likely hold the largest share of the blockchain platform market. Its dominance can be attributed to the security level it offers to game developers and gamers. ETH reduces security risk dramatically, ensuring the safety of clients' data and money.
CryptoKitties, the first NFT on the ETH project, allowed players to collect digital cat collectables backed up by NFTs.
It paved the way for creating other games on the Ethereum platform. Axie Infinity is one of the most popular games available on ETH. Other popular games include Gods Unchained (The Sandbox), Decentraland and CryptoKitties.
ETH is a public chain which has its own set of challenges. This causes game developers to look for alternative platforms to solve scalability issues and gas fees.
It is predicted that ETH will grow slower than other platforms, such as BNB Chain Avalanche Polygon and Solana. The situation could change shortly, as Ethereum will receive network upgrades in 2024.
Blockchain Gaming: Promoting Blockchain Gaming
Blockchain Game Alliance
Blockchain Game Alliance (BGA) is an international organization with more than 300 members from 56 countries that aims to advance the adoption and development of blockchain games.
BGA strives to increase awareness of this emerging technology and accelerate its uptake within gaming by sharing best practices and developing standards. Furthermore, this alliance encourages research on standards and sharing information related to developing this technology field.
BGA strives to increase public knowledge of blockchain games by offering insight into the advantages and limitations of this emerging technology.
As a trusted source in both media coverage and gaming industry-related discussions on this matter, they serve to further public understanding. BGA also highlights aspirational initiatives within this sector of game development.
The Alliance provides an open, inclusive platform that fosters dialogue and engagement between its members and key stakeholders.
BGA supports its members' ability to directly and openly discuss pertinent issues related to blockchain's impact on individuals, businesses and society - with the ultimate goal of providing critical players with all of the knowledge, resources and abilities required to fully participate in developing Blockchain games.
ConsenSys, founded by Joseph Lubin, who co-founded Ethereum, is one of the premier Ethereum technology companies.
Asia Blockchain Gaming Alliance
The Asian Blockchain Gaming Alliance was formed in 2023 to foster the expansion of blockchain games across the Asia Pacific Region.
They aim to foster a vibrant blockchain gaming ecosystem by sharing industry knowledge, guiding investors and incubating startups. The gaming industry in this region is already worth billions, making it an attractive target market for blockchain vendors looking to reach wide customer bases.
Asia's blockchain gaming industry is flourishing thanks to favorable government regulations, like those published by the Japan Cryptocurrency Business Association (JCA) for cryptocurrency custody operators.
These guidelines aim to assist developers in creating blockchain-based games which comply with regulations while offering players more significant control of assets within their games.
Conclusion
2023 was an eventful year in the crypto space, marked by falling NFT sales and decreasing confidence caused by market crashes such as gaming industry continued its upward trajectory despite these challenges by welcoming many new projects that aim to provide immersive metaverses combined with titles offering play-to-earn features where players could earn rewards based on time spent and achievements - along with offering potential cryptocurrency earnings opportunities.
