Blockchain and its gaming future

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As a seasoned researcher with over seven years of immersion in the blockchain industry, I can confidently say that my initial fascination with Bitcoin in 2009 has blossomed into an awe-inspiring journey witnessing the incredible transformation this technology has brought about, particularly in industries like gaming. It’s mind-boggling to think that back then, no one could have predicted the colossal impact blockchain and cryptocurrencies would have on major sectors worldwide.

For more than seven years, I’ve been deeply involved in the rapidly expanding field of blockchain technology. During this time, it’s hard to believe that anyone could have foreseen just how massive this industry would grow. It all started with Bitcoin in 2009, a concept whose potential was evident but few imagined it would evolve into a significant alternative currency within a decade. However, as we stand today, cryptocurrencies and innovative blockchain technologies such as Non-Fungible Tokens (NFTs) have revolutionized numerous industries globally. They’ve brought about novel methods for sharing, storing, and verifying data in various sectors.

In one of those sectors, we have the gaming industry, which is similar to conventional games that allow users to personalize their in-game actions, character appearances, and other game elements. Similarly, this feature exists in blockchain games. This customization has led to a chain reaction, such as the growth of player-driven economies within the games. Players can earn these items and trade them among themselves for in-game money. Remarkably, they can exchange this virtual currency for real-world currencies through online marketplaces.

Blockchain technology, built on principles such as decentralization and transparency, has spurred significant investments across various industries due to its innovative nature. Originating alongside Bitcoin, which has demonstrated success compared to traditional currencies, this technology is frequently regarded as a financial innovation. However, it’s worth noting that its impact extends beyond finance, particularly in the gaming industry where its value is increasingly apparent.

In 2022, the gaming market was approximately valued at $245.9 billion, and predictions suggest it could swell to a staggering $682 billion by 2030. This growth is anticipated at a rate of 13.6% each year during this period. These figures underscore the industry’s significant scale, and given that gaming studios are experimenting with developing games based on blockchain technology, it seems that this sector will continue to expand substantially.

In this piece, I’ll be spotlighting two groundbreaking initiatives that showcase the direction gaming may take in the future, leveraging cutting-edge applications of blockchain technology and Non-Fungible Tokens (NFTs).

Blockchain in Gaming

Games created using blockchain technology are referred to as blockchain games. These interactive experiences leverage Non-Fungible Tokens (NFTs) for the representation of in-game items, allowing players to exchange them. Over the past ten years, there has been a noticeable surge in interest towards these types of games. As per a report by DappRadar in August 2024, the blockchain gaming sector reached an unprecedented peak that month. An all-time high of 4.2 million daily active users was reported – a 5% increase compared to the number of daily Unique Active Wallets (dUAW), breaking records on numerous platforms.

One significant factor behind this is that blockchain-based games offer players an authentic means to generate income, making them more appealing to play. The potential for earning money while having fun adds an extra layer of incentive, significantly enhancing the enjoyment level in these games.

As an analyst, I’d say that Axie Infinity stands out as a remarkable demonstration of a blockchain game that achieved massive popularity. At its zenith, it boasted approximately 2.7 million daily active users, a figure reported in August 2022. According to Coindesk, players were earning an average of about 4,500 SLP per month, which equates to roughly $800. This technology has not only offered gamers lucrative opportunities but also opened up a new revenue stream for game developers. These creators can now capitalize on scarcity by selling their in-game assets as marketable items. Moreover, they can earn royalties from the secondary sales of these gaming assets.

In contrast to conventional games, blockchain games grant players permanent ownership of the items they acquire during gameplay. This means these items are less vulnerable to hacks and accidents, such as the instance in November 2022 when Call of Duty Warzone servers frequently lagged and crashed, causing players to lose their in-game achievements and assets. If this game had been built on blockchain technology, the lost items would have taken the form of Non-Fungible Tokens (NFTs), which would have ensured that they remained securely stored in each player’s digital wallet.

Participating in a game’s financial aspect can be done by owning and trading in-game assets, and Sidus Heroes is an excellent demonstration of this concept. This futuristic MMORPG is a shining example of a Play-to-Earn (P2E) game utilizing Non-Fungible Token (NFT) technology. On this platform, players have the opportunity to own in-game content, fostering a dynamic trading market for these digital assets.

Winning these NFTs involves some level of competition, which is a persistent aspect of blockchain technology. QORPO is transforming the eSports industry by making it inclusive on the blockchain. Their primary project, Citizen Conflict, is a high-speed hero shooter game built with the strong foundation of eSports and fueled by blockchain technology for an optimized competitive gaming experience. With this type of game, players can compete at professional levels and receive rewards simultaneously.

Constructing games on a blockchain enhances the security of players. These games keep the account details of countless users securely via encrypted databases, making them more resilient against cyber-attacks compared to conventional video games, which often suffer from hacking incidents that may lead to disclosure of sensitive player information.

Future of Blockchain Gaming

I’ve been astonished by the rapid expansion of the blockchain gaming sector since 2021. Notable trends such as Play-to-Earn (P2E), Move-to-Earn (M2E), and Telegram Mini-games have gained popularity. At present, mini-games are gaining traction, primarily due to the TON blockchain. These games are being developed on top of Telegram, incorporating robust P2E features. As this innovative industry evolves, we can expect new trends to continually surface. Some notable elements to watch for in the future of blockchain gaming encompass:

  • Interoperability: Soon, players will seamlessly transfer game assets and collectibles from one game to another. Interoperable blockchain gaming ecosystems would create the ultimate competitive gaming experience.
  • P2E Models: While this ready exists and continues to gain popularity, I think the model will be doubled down on and improved. Players would be allowed to earn real-world value for their time but this time with an improved feature like interoperability.
  • Metaverse: An increasing feature of blockchain games is integration with the metaverse. Powered by metaverse technology, these gaming platforms create an immersive virtual environment where players can easily interact and engage in gaming and economic activities.
  • Regulatory landscape: The more blockchain gaming companies build these games and launch in different countries, the more the navigation of regulatory frameworks and compliance requirements becomes essential. This is especially important to the long-term sustainability of the blockchain gaming ecosystem. 
  • Performance and scalability: Addressing scalability challenges is a crucial need to ensure the growth of blockchain gaming. This is true for the blockchain gaming scene as it is for the rest of the industry. Today, there are new scaling solutions developed to improve the performance of blockchains, while reducing their costs. Layer-2 and —more recently— Layer-3 blockchains (built on the foundations of Layer-1 and Layer-2 solutions) are good examples of these scaling solutions. 

Final Word

The future of blockchain gaming appears bright, filled with both hurdles and prospects. These elements are likely to persist within the industry until we’ve outgrown its early phases. It’s quite possible that platforms such as Sidus Heroes and QORPO will lead the charge in blockchain gaming a decade from now, becoming iconic figures for showcasing the technology’s ability to revolutionize the gaming world.

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2024-09-30 13:05