Web3 games, often known as “blockchain gaming,” use distributed ledger technology to allow users more control over their in-game assets, making them more transparent, secure, and democratic.
Web3 games are built on blockchains’ peer-to-peer, decentralized nature, and they employ unchangeable coins and tokens (NFTs). Blockchain enables users to own, sell, and transport in-game objects such as NFTs and other digital assets without the need for a third party. Decentralized markets employ smart contracts to manage and exchange assets.
Decentralization provides several distinct benefits to both the gaming business and players. Along with the greater security and transparency that a blockchain offers, decentralized gaming led to the play-to-earn (P2E) gaming paradigm, in which gamers earn cryptocurrency by playing games and leveling up.
Blockchain games help the gaming industry’s finances by coming up with new ideas like decentralized autonomous organizations (DAOs), crypto-secured gaming wallets, and the metaverse. Here’s what you need to know about blockchain gaming and the essentials for getting started.
2. How do blockchain games work?
Blockchain games leverage blockchain technology to allow players to hold assets and money outside of the game. This implies that players may acquire, trade, and utilize these assets outside of the game. They additionally utilize cryptocurrency payments and smart contracts to ensure transactions are secure and transparent.
Blockchain games are based on decentralization, which provide gamers with greater control, transparency, and security than traditional centralized gaming platforms. Blockchain technology produces an immutable record of all transactions and ensures that games are determined by checkable algorithms rather than centralized servers.
People can play games made with different parts of Web3 technology in a place called Web3 gaming. Today, blockchain technology and related applications like NFTs, cryptocurrencies, and DAOs are used in most Web3 games.
— Derek T. Belford (@DerekBelford)
2. What makes blockchain gaming different from traditional games?
Blockchain gaming has unique qualities that distinguish it from typical centralized platforms. One significant distinction is transparency—peer hosting assures that all players have access to the same information, removing third-party control. Setting up a cryptocurrency wallet is straightforward, allowing players, including those unfamiliar with blockchain, to readily join.
One significant advantage of blockchain gaming is increased ownership of in-game assets such as virtual land, money, and characters. Players can own and exchange these assets, some of which have real-world worth. This is a substantial departure from typical games, in which developers retain ownership.
Blockchain gaming also brings new economic models, such as play-to-earn (P2E), which allows users to earn money for their in-game achievements. In fact, by 2027, the P2E industry is expected to exceed $65.7 billion in value, demonstrating increased interest from both players and developers. This encourages gameplay and strengthens the gaming ecosystem.
Finally, interoperability across games is an important aspect of blockchain gaming. Players may migrate their assets between platforms, increasing customization and engagement. Blockchain technology promotes transparency and digital scarcity, increasing the value of in-game assets by eliminating duplication and inflation.
3. What are the security concerns of blockchain games?
Blockchain gaming offers exciting prospects but also poses major hazards. The volatility of cryptocurrencies is a huge problem since it might alter the value of in-game items. Players may devote time and money to acquiring or purchasing digital objects, only to have their value drop owing to market volatility. The lack of regulation in crypto markets increases the risk, potentially resulting in huge financial losses for players.
Another issue is the possibility of security flaws. While blockchain technology is typically safe, it is susceptible to hacking and fraud. Smart contract vulnerabilities or poorly built systems can lead to attacks in which bad actors steal in-game assets or compromise user accounts. In 2022 alone, blockchain-based businesses lost more than $4 billion due to cyberattacks, highlighting the ongoing risks in the space.
4. How do players acquire assets?
Blockchain developers make money by advertising, selling things, and using the game’s coin. These gains are frequently distributed to gamers by awarding them with virtual assets. There are several ways to gain in-game assets by playing cryptocurrency games, including:
Winning cryptocurrencies or NFTs for success. Most play-to-earn games use certain success measures to track players’ profits. A blockchain-based trading card game, for example, may reward players a certain amount of cryptocurrency tokens for defeating each opponent.
Character leveling. Leveling up your in-game character might sometimes bring you benefits. A blockchain-based RPG, for example, may provide players with in-game stuff as they progress through the levels. These in-game objects are frequently minted as NFTs, which may be traded on the secondary market.
Gamble with cryptocurrency. Crypto gambling games work similarly to regular gambling games, except participants are rewarded with bitcoin rather than money.
5. Can I earn real-world money?
Crypto games reward players with cryptocurrency or NFTs. After accumulating these assets, players can sell them for stablecoins or fiat cash (real-world money). In the early phases of gameplay, you often get fewer assets, which means you’ll make less money by playing. However, the value of these assets varies, just like the value of stocks. If you save your assets, you may be able to sell them for a higher price later on. On the other hand, an asset’s value can decrease over time.
6. What’s Next for Blockchain Games?
The future of blockchain gaming is exciting and promising since it will provide gamers with new methods to own in-game assets and currencies, as well as new revenue streams for creators. Adding blockchain to gaming has transformed the industry by making it more democratic by eliminating centralized parties and providing new revenue streams through more social and community-based gaming experiences, all of which enhance the social and entertaining aspects.
However, crypto games are unlikely to replace traditional games since they provide various experiences and are designed for diverse audiences. Blockchain games, on the other hand, have the potential to create new revenue streams and prospects for the gaming industry while also providing users with new methods to play.
In addition, as blockchain gaming technology and infrastructure improve, we should expect to see more inventive and engaging games, an increase in the usage of cryptocurrency payments, and more methods for players and developers to participate in the decentralized gaming ecosystem.
Closing Thoughts
Finally, blockchain gaming is revolutionizing the gaming industry by providing gamers with increased ownership, transparency, and new economic prospects. From play-to-earn models to safe trade of digital assets, blockchain empowers gamers in ways that traditional gaming cannot. However, it also introduces obstacles like market instability and security dangers, which participants and developers must negotiate with caution.
As blockchain gaming evolves, it has enormous potential to transform how we engage with virtual worlds. Understanding the benefits and hazards of decentralized ecosystems is critical for players interested in exploring them. Whether you’re an experienced gamer or a curious newbie, the future of blockchain gaming offers an exciting voyage into a new era of digital ownership and involvement.
