The NFT Era Was Just the Beginning, Blockchain Gaming is the Future

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As a seasoned analyst with over two decades of experience in the tech and gaming industries, I have witnessed the evolution of digital assets from mere curiosities to integral parts of our daily lives. The NFT craze was certainly an intriguing development, but like any new technology, it had its ups and downs.

2021 saw the non-fungible token (NFT) phenomenon sweep across the blockchain gaming landscape like a tempest; this distinctive corner of digital assets became the talk of the town among many industry insiders who even predicted it as the future of gaming.

It so happened that a majority of the games that gained popularity due to their NFT focus have either become dormant or lost their initial charm. To elaborate further, Axie Infinity’s in-game token, Smooth Love Portion (SLP), is now trading at 99% below its peak price of $0.3997 during the height of the NFT frenzy. Similarly, the rare cards from God’s Unchained have plummeted in value from an average of about $10,000 to as low as $100.

The substantial decrease in the worth of NFT gaming assets has diminished the appeal of blockchain games and sparked a good deal of criticism. Many skeptics claim that blockchain gaming is far from matching traditional games or established infrastructures for numerous reasons: inferior gameplay, problematic tokenomics to support incentivized economies, excessive technicalities, and exclusion of interested Web2 game developers.

To an extent, these points are valid, but considering the advancements that followed the NFT craze, it appears that NFTs have paved the way for a more revolutionary period in the gaming industry.

A New Dawn For Blockchain Gaming

In the realm of cryptocurrency, downturns or bear markets serve as ideal opportunities for construction, and this is precisely what visionaries and other key players have been focusing on during the last two years. The following segment will shed light on three significant tendencies that are strengthening blockchain technology’s role in shaping the future of gaming platforms.

Publisher-as-a-Service (PaaS) Web3 Platforms

Initially, when NFTs were new, many game developers found it challenging to build games on the blockchain due to a lack of technical expertise. However, that’s changing now; emerging Web3 gaming platforms like Functico are bridging the gap, making it easier for both traditional Web2 and cutting-edge Web3 developers to participate.

This Web3 gaming platform, which supports multiple blockchain networks, stands out as one of the rare ecosystems that has advanced its services by providing smooth development tools via its Publisher-as-a-Service (PaaS) system. The platform boasts a comprehensive 360-degree studio aimed at simplifying the process of creating Web3 games, encompassing stages from publication to establishing reward systems that keep potential players engaged and incentivized in a sustainable manner.

Moreover, Funtico’s Platform-as-a-Service (PaaS) offers a creator’s workspace where developers can create unique NFTs tailored to their needs. This feature is a significant advancement that many Web2 developers have eagerly awaited as they aspire to develop or customize blockchain games. By integrating Funtico’s API and Software Development Kit (SDK), developers can seamlessly incorporate blockchain technology into their game development projects, avoiding the need to start afresh with their existing ideas.

Transitioning to a simpler and more conversational style: The notion of PaaS (Platform-as-a-Service) blockchain gaming infrastructures is a significant leap forward, paving the way towards a more welcoming landscape. By making it easier for developers to launch their games through these platforms, we could draw in some of the top talents who previously found blockchain games unattractive due to the necessity of learning everything from scratch.

More Fun Games, Less Speculation!

To clarify from the beginning, an issue with the initial blockchain games was that their token distribution systems were not well-designed.

Many games launched from 2020 to 2022 predominantly centered around buzzworthy speculations, with their in-game assets often seen as means for wealth acquisition. Unfortunately, these games suffered from weak game mechanics, leading to a significant player churn.

It appears innovators have taken lessons from their past blunders, focusing now on creating blockchain games with more captivating gameplay experiences. As of today, the top two blockchain games, World of Dypians (MMORPG) and SERAPH:In The Darkness (action RPG), are centered around these immersive gaming environments.

It is also interesting to observe the rise of Telegram’s tap-to-earn games which are proving to be more effective than their tap-to-earn counterparts in onboarding new users to crypto. This niche now enjoys a market cap of $2.2 billion according to Coinmarket, with some games such as Lucky Funatic attracting over 400k monthly users. Other prominent names include Notcoin, Hamster Kombat and Catizen. 

Traditional Game Publishers Joining the Bandwagon

A growing trend is for established game developers to create their own blockchain games or form alliances that position them at the heart of this technological shift. According to a report from Coingecko in 2023, more than 70% of major gaming companies worldwide have invested in some form of blockchain project.

Significant progress has been made in this area, with developments like Epic’s shift in content policy, enabling the reintroduction of play-to-earn games such as Gods Unchained onto their platform. Meanwhile, industry titans such as Konami have ventured into blockchain technology by launching a blockchain-based project to utilize this tech within their gaming marketplace.

These actions point towards the future; they’re indicative of a cutting-edge gaming sector that will be underpinned by Web3 technology. The fact that established publishers are now entering the scene is quite exciting, as they bring a substantial resource – both human and financial capital. Many of these players not only have deep pockets but also possess the skilled workforce and development tools necessary to mold the future of gaming.

Wrap Up

Despite not fully meeting initial expectations, NFTs offer a groundbreaking vision for what gaming economies could be: dynamic environments where players can truly own in-game items and influence development through Decentralized Autonomous Organizations (DAOs). As speculation subsides and Web3 takes the spotlight in gaming development, we can anticipate further innovations.

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2024-11-14 18:46