The gaming industry is undergoing a profound revolution thanks to blockchain technology. A new category of games known as crypto games is changing how we perceive and engage with virtual worlds. These blockchain-powered games not only introduce innovative gameplay and decentralized ownership but also enable players to earn a living by simply playing. One standout example is Axie Infinity, where players can earn cryptocurrency rewards while collecting and battling creatures called Axies. Now, we’ll look into how the industry is revolutionized by blockchain, focusing on the rise of crypto games and how previously part-time gamers are now able to pursue a full-time career. We will delve into the benefits of blockchain, including enhanced security, true ownership of assets, cross-platform interoperability, and innovative funding models. The success of Axie Infinity highlights the disruptive potential of blockchain games and the blurring line between work and play in the gaming world.
The concept of decentralized ownership and tradable virtual assets has gained significant popularity, with blockchain technology bringing about a transformative shift in the gaming industry. Games like EVE Online have long featured vibrant virtual economies, but these were controlled by the game developers, leaving players with limited control over their in-game assets. However, blockchain technology has changed the landscape by enabling players to have true ownership of their virtual assets. Additionally, all in-game economics are executed directly by smart-contracts, making everything decentralized and not reliant on centralized control. This shift not only empowers players to have complete ownership but also ensures that the rules and interactions within the virtual economy are governed by immutable code. The study of virtual economies adds a vital dimension to the analysis of digital media, as it influences power dynamics, value systems, and participation rewards. This shift towards decentralized ownership and tradable virtual assets is relevant to practitioners and provides insights for scholars, policymakers, teachers, and even gamers seeking a deeper understanding of the games they play.
What is more, through synthetic assets all of these tokens can also be traded, which was not possible before with non-blockchain based games. That creates a whole new industry within the intersection of trading and gaming. The interesting thing is that now professional traders and gamers can trade the game-tokens like stocks. Traders could now spot repeating candlestick patterns and apply their beloved technical analysis on game-tokens and gamers could invest or trade their favourite games based on in-game trends or popularity, developing a whole new secondary digital economy.
Enabling Cross-Platform Interoperability
This seamless transfer of assets between different crypto games, through the use of NFTs, mostly based on ERC20 tokens, made it possible for completely unique projects to emerge.
A notable example is Loot NFTs, a collection of 8,000 unique tokens represented as simple images of white text on a black background. Each Loot NFT represents a “bag” filled with eight pieces of randomized adventuring gear, such as weapons and armor, reminiscent of fantasy-adventure games.
Loot NFTs were released in August 2021 without predefined purposes or set rules, leaving it up to the imagination of the community to determine how the game should be played. While the items listed on the Loot NFTs lack stats or images, they sparked the creativity of the Loot community, empowering them to build their own game system around these items. As a result, the community has developed an array of tools, maps, characters, and additional NFTs that complement the original Loot (for Adventurers) collection.
This level of cross-platform interoperability provided by Loot NFTs is a game-changer in the industry. Players not only have ownership of their Loot NFTs but also the freedom to utilize them in various compatible games. The versatility and uniqueness of Loot NFTs open up a world of possibilities, where players can carry their loot across different virtual worlds, forging connections and experiences that transcend individual games.
Innovative Funding Models and Crowdfunding for Game Development
Blockchain technology has revolutionized funding models for game development, opening up new avenues for crowdfunding and enabling individuals to profit from early participation. Projects like Axie Infinity, Decentraland, and Sandbox have demonstrated the power of these innovative funding models in the gaming industry.
Axie Infinity, a blockchain-based game, allows players to collect, breed, and battle creatures called Axies. The game’s native token, Axie Infinity Shards (AXS), has seen significant appreciation in value, providing early participants with substantial returns on their investment.
Decentraland and Sandbox, decentralized virtual worlds built on blockchain, have embraced crowdfunding as a means of financing their development. Through initial coin offerings (ICOs) or token sales, these projects have offered early supporters the opportunity to purchase virtual land or in-game assets using cryptocurrency. The value of these virtual assets can appreciate over time, creating potential investment opportunities for early adopters.
By leveraging blockchain technology and cryptocurrencies, crowdfunding in the gaming industry has become more accessible, transparent, and potentially lucrative. This shift in funding paradigms is transforming the relationship between developers and players, fostering a sense of community ownership and investment in the future of gaming.
Enhanced Value and Scarcity of In-Game Assets
In the world of gaming, we have long been captivated by rare and coveted items like the “Teebu’s Blazing Longsword” in World of Warcraft, the “AWP | Dragon Lore” skin in Counter-Strike, or the “TOTY Icon Ronaldinho” in FIFA. However, the concept of rarity has now taken on entirely new dimensions with the advent of blockchain technology. The blockchain allows for the verifiable scarcity of in-game assets, making them provable and indisputably limited. This transformation opens up exciting possibilities, where these scarce assets can carry over into future versions, expansion packs, or even different games altogether. The fusion of blockchain and gaming gives players the ability to truly own their valuable digital possessions, with the potential for them to transcend individual game boundaries. This enhanced value and scarcity add a new layer of excitement and incentive for players, as they strive to acquire and trade these prized assets, knowing their uniqueness is now verifiably encoded on the blockchain.
As you see, crypto games have emerged as a new category, enabling players to earn a living by playing and immersing themselves in blockchain-powered ecosystems like Axie Infinity. Blockchain brings decentralized ownership and tradable virtual assets, empowering players with true ownership and control over their in-game possessions. Cross-platform interoperability breaks down barriers, allowing players to transfer assets between different games, as exemplified by Loot NFTs. Innovative funding models and crowdfunding, demonstrated by projects like Axie Infinity, Decentraland, and Sandbox, provide opportunities for early participants to profit from their contributions. Finally, the enhanced value and provable scarcity of in-game assets, made possible by blockchain, captivate players and transform the notion of rarity.