Blockchain in Gaming – The Potential, and Limitations, Unleashed!

What is Blockchain Gaming?

Before moving ahead, it is crucial to understand what blockchain gaming is all about. Well, blockchain gaming represents a groundbreaking synergy between the decentralized nature of blockchain technology and the immersive world of gaming. If we talk about its core, blockchain gaming leverages the transparent, secure, and decentralized ledger nature of blockchain technology in order to introduce novel features that enhance the overall gaming experience.

Unlike traditional gaming setups where ownership of in-game assets is centralized and controlled by the game developers themselves, blockchain gaming introduces the concept of non-fungible tokens (NFTs). These tokens are built on blockchain platforms like Ethereum and represent unique and verifiable digital assets. In the context of gaming, NFTs can include anything from characters and weapons to virtual real estate.

The key innovation lies in the ownership and transferability of these in-game assets. Players gain true ownership of their digital possessions, enabling them to buy, sell, and trade assets both within and outside the game environment by utilizing blockchain. Smart contracts, self-executing pieces of code on the blockchain, automate these transactions, which ensures transparency and security.

Furthermore, blockchain gaming often employs decentralized applications (DApps) to create gaming ecosystems that can operate independently of a central authority. This decentralized approach not only reduces the risk of censorship and fraud but also empowers players to exercise greater control over their gaming experiences.

In essence, blockchain gaming transforms the gaming landscape by introducing trustless ownership, transparent transactions, and player-centric ecosystems. This offers a glimpse into the future of a more democratic and immersive gaming world.

Market Overview of Blockchain Technology in Gaming

According to a survey, the global blockchain gaming market size has reached 8.9 Billion USD in the year 2023. This market is further projected to reach 854.4 Billion USD by 2032, and that too with a compound annual growth rate (CAGR) of 65.2% during 2024-2032.

If we further go with a survey from Newzoo & Crypto.com, where 4,569 respondents participated across three major blockchain gaming markets in the world – the United States, United Kingdom, and Indonesia, here are some of the major findings that came out.

• Among those surveyed, 13% had previously played blockchain games and 5% were doing so right now. 40% of them showed a high interest in playing. Of those surveyed, 22% said they would never play games on the blockchain. Some had never heard of blockchain gaming, while others were perplexed by the idea.
• The distribution of genders among all gamers was fairly equal. Nonetheless, 60% of blockchain gamers are men and 40% are women.
• Generation Z and Millennials make up the bulk of blockchain gamers. Most blockchain players were middle-class to upper-class individuals.
• Blockchain players primarily spend money on games in order to unlock additional content, level up and customize their characters, get advantages, take advantage of special offers, invest, and advance more quickly.
• The following are the reasons behind blockchain game players’ motivations: to make a little extra cash (34%), increase cryptocurrency assets (30%), amass a collection of NFTs (24%), simply enjoy the game (23%), explore virtual worlds (20%), turn a hobby into a career (17%), amass items (15%), personalize avatars (15%), and interact with others (13%).
• 77% of blockchain players have previously engaged in trades on NFT marketplaces. Moreover, as in-game markets are more dependable, blockchain players favor them for exchanging game items.

Well after going through the stats it becomes much easier to interpret why blockchain game development is on the rise these days. To make it more understandable let’s go through some of the major benefits of blockchain in gaming.

How Blockchain is Revolutionizing the Gaming Industry ?

Although blockchain technology has been around for a while, its potential to completely transform a wide range of industries has recently brought it more attention. It has emerged as the industry leader in the gaming sector in recent years because of its benefits across multiple industries.

The following are some advantages of blockchain technology that are revolutionizing the gaming industry and making it possible to create blockchain games:

1Improved Security

Developing a game on the blockchain offers a kind of secure environment for entrepreneurs as well as game developers. Blockchain platforms secure cryptocurrency token transactions with strong data encryption technologies like the private key-public key pair. These data encryption techniques are safe because they are nearly impossible to hack with the technology we currently use.

Furthermore, since there isn’t a single server to defeat in a decentralized blockchain network, hackers won’t be able to take it down. Moreover, to maintain network security, blockchain networks employ consensus algorithms such as “Proof of Work” (POW). Therefore, the blockchain prevents hackers from erasing or changing the transaction history of an active network.

2Cost-Effective Payment Processing

In most online games, users must pay high fees in order to access the gaming features. Additionally, even though players can use fiat money, the transactions are not economical. They also required a way to move their assets without having to wait days for payment processing. Blockchain allows for limitless, instantaneous payments everywhere.

Gamers can stop using their debit or credit cards because of the blockchain technology. It provides a decentralized payment method regardless of the size of the transaction. A scammer is unable to alter transactions or obtain personal information.

3Enhanced User Experience

Blockchain can help improve the overall user profile by providing a more effective, safe, and transparent way to engage in digital marketing and make virtual purchases.

Blockchain gaming gives viewers more control over their gaming expertise. This trend has taken many forms, such as letting players construct their own symbols and allowing precise play. Additionally, it allows them to download a variety of video games from different interpretations from any location without risking their gaming expertise.

4Integrated Gaming Profiles Development

Since blockchain games are a novel topic, it is possible to create a unified community where players can approve of various games. It makes it easier for users to play different games and make purchases by enabling them to have a single profile that they can use on multiple forums. This enhances user knowledge.

5Play-to-Earn Opportunities and Decentralized Economies

Block­chain gaming introduces economies that are more civilized. By taking part in different activities, players in these economies have the chance to earn cryptocurrency or in-game tokens.

Players can participate in play-to-earn models through the use of blockchain technology and smart contracts. This implies that they can receive a tangible reward for their time and labor. This idea not only gives gaming a fresh level of excitement but also opens up possibilities for revenue generation and financial empowerment.

Also Read: The Rise of Web3 Gaming: A Paradigm Shift in the Gaming Industry

Top 5 Use Cases of Blockchain in Gaming

• CryptoKitties

Founded in November 2017, this is among the first attempts to create a game based on blockchain technology. It has now grown to be one of the more popular games created on Ethereum. The contest’s main goal is to create a new generation of kittens with unique characteristics in order to maximize their significance.

Participants can reserve their cats or deal with them through an available marketplace. Each cat’s unique personality is shaped by genes that represent a variety of traits, including skin tone, jaw structure, sight form, base color, and extra shade.

• Decentraland

Decentraland is a digital validity medium that creates a decentralized virtual earth using blockchain technology. Users are able to create, comprehend, and monetize apps and content on this medium.

Within the virtual world of Decentraland, users are free to move around, investigate, and purchase a variety of other users’ properties. They can pay exactly to participate in slot events, play games, join groups, and try out all the different backgrounds that builders around the world have to offer.

• Gods Unchained

Gods Unchained cards are unique and beneficial because they are virtual purchases that cannot be copied or changed without the owner’s consent.

The Ethereum blockchain guarantees that the Gods Unchained cards are also dealt directly between players, avoiding the contest marketplace and keeping them safe from cybercriminals.

• Upland

Upland is a metaverse property-trading game. Players in Upland use real-world addresses to buy, sell, trade, and construct virtual properties. For this, Upland has mapped the cities of New York and San Francisco.

Users can construct properties and earn UPX coins at Upland by registering as a “digital landlord”. They can also easily exchange in-game assets with other players and buy digital assets with fiat money or cryptocurrency (UPX coin).

The Property-to-USD program, which allows players to sell properties for real money, was recently added to the game in beta form and is proving to be a success.

• MOBOX

MOBOX is a thrilling metaverse game that combines farming NFTs and yield farming. It offers players the choice to play for free or to earn money by playing. It’s a fantastic platform that runs on the Binance Smart Chain and cleverly blends gaming and decentralized finance (DeFi).

Encouraging everyone to play NFT games and earn money while doing so is the main goal of this game. MOBOX presents its players with MBOX tokens.

Moreover, the Mobox developers aimed to bring gaming closer to GameFi as a platform by allowing players and investors to access games from multiple blockchains in one location.

Also Read: How Much Does Metaverse Game Development Cost in 2024?

Top 3 Blockchain-Driven Trends in Gaming

The gaming industry has seen tremendous changes as a result of blockchain technology, which has made it possible for safe transactions and innovative gameplay. We can anticipate seeing even more cutting-edge blockchain gaming trends in the upcoming years.

• NFTs in the Gaming Industry

Non-fungible tokens, or NFTs, are distinct digital assets that are impossible to duplicate. They are used to authenticate and sell digital art, which has made them more and more popular in the art world in recent years.

We anticipate seeing greater adoption of NFTs in the gaming sector. NFTs will be used by games to authenticate and market in-game goods to players, like skins and weaponry. This will enable developers and gamers to access a more transparent and safe marketplace.

• Cross-Platform Gaming

Cross-platform gaming makes it possible for players to enjoy the same game on a variety of platforms, including PCs, consoles, and mobile devices. We should anticipate seeing more cross-platform games in the future, particularly those that make use of blockchain technology. This will result in more participation from across the globe and a smoother gaming experience.

• Play-to-Earn Gaming

A novel idea called “play-to-earn” gaming enables users to get cryptocurrency just by engaging in games. We should anticipate seeing more games use this idea in upcoming years. The game offers players the opportunity to earn cryptocurrency by fulfilling missions, quests, and tasks. This will enable a more engaging gaming experience for players and open up a new revenue stream for them.

Also Read: Top 10+ Blockchain Trends To Watch Out For In 2024

Top 3 Recent Blockchain Developments

1. In March 2022, Immutable announced that it had raised 200 million USD in Series C funding led by Temasek, with additional investments from Tencent and Animoca Brands, two of the biggest blockchain game companies. This increased the company’s valuation to 2.5 billion USD.
2. Illuvium: Beyond announced in August 2023 the launch of Beyond Wave 2, which is expected to be a significant release for digital collectible games.
3. Mocaverse, Animoca Brands Corporation Ltd., and CyberConnect signed a Memorandum of Understanding (MoU) for a strategic partnership in August 2023 to create a decentralized social layer for its NFT collection.

Top 5 Limitations of Blockchain in Gaming

Since blockchain gaming is still in its infancy, a number of barriers must be overcome before it can be widely used. We will examine the present state of blockchain gaming while putting the limelight on some of the major challenges.

1Absence of User-Friendly Interfaces

The user interfaces of blockchain games are frequently intricate, which poses a significant obstacle to their widespread popularity. A lot of blockchain games require players to manage their digital assets and navigate complex wallets, which makes the learning curve for new players very high. However, blockchain gaming can easily become accessible to a wider audience by improving intuitiveness and streamlining the user experience.

2Lack of Compelling and Diverse Game Content

Decentralized economies and actual ownership of in-game assets are just two of the distinctive features that blockchain gaming offers. It does not, however, have engaging and varied game content.

Currently, there is a lack of action, adventure, and strategy games on the blockchain because most of them concentrate on collecting or gambling. It will be essential to create diverse and interesting game content in order to draw in a wider audience and promote mainstream adoption.

3Legal and Regulatory Uncertainties

Due to its operation in the field of emerging technologies, blockchain gaming raises questions about legality and regulations. The lack of standardized regulations across various jurisdictions creates uncertainty for publishers, developers, and players, which ultimately impedes the advancement of the industry. Collaborative efforts within the industry are crucial to address these issues and ensure regulatory clarity, which will in turn foster sustainable development in blockchain gaming.

4Restricted Player Pool and Network Effects

Blockchain gaming faces several difficulties in its early phases, such as a small player base and constrained network effects. These games’ success is largely dependent on a vibrant community and frequent player interaction. Increasing the number of players and fostering network effects that encourage cooperative play and healthy competition within the gaming ecosystem is essential to overcoming this obstacle.

5Scalability Issues

The scalability of blockchain gaming is limited in some ways. These restrictions, which have an immediate impact on the overall gaming experience, include slower transaction processing times and higher fees. As a result, players frequently have frustrating experiences and subpar performance. Overcoming these obstacles is essential for blockchain gaming to become more widely accepted and effectively compete with traditional gaming platforms.

2023's Top Blockchain Games

According to player count, these are the top blockchain games as of Q1 2023.

• Alien Worlds: 223,000 participants
• Splinterlands: 120,000 participants
• Planet IX: 62,000 participants
• Nine Chronicles: 22,000 participants
• Upland: 21,000 participants

How Blocktunix Can Help You In Your Blockchain Gaming Venture?

Blocktunix is a premier blockchain development company. Entrusting Blocktunix with your blockchain-based gaming app development ensures a seamless journey into the future of gaming. We combine cutting-edge technology, innovative gameplay mechanics, and a commitment to user-centric design in order to craft an unparalleled gaming experience.

With expertise in NFT integration, play-to-earn solutions, and robust smart contract implementation, Blocktunix empowers you to create a gaming ecosystem that transcends traditional boundaries. By choosing Blocktunix, as your blockchain game development company, you not only gain a development partner but also a visionary collaborator dedicated to transforming your gaming aspirations into reality.

So, elevate your gaming venture with Blocktunix and embark on a thrilling adventure at the intersection of blockchain and entertainment.