The Rise of Blockchain Gaming

Blockchain technology has transformed quite a few industries of late, but one of the major areas in which it is making waves is the gaming industry. With millions of daily users now engaged in blockchain or crypto-based games, it’s clear that this technology has shifted from a niche concept to a major force shaping the future of the gaming industry.

What’s driving this surge in popularity, though? The answer lies in the way blockchain empowers players with true digital ownership, a revolutionary play-to-earn (P2E) model, and a decentralized marketplace for in-game assets. Whether it’s adding an interactive NFT edge to standard video gaming fare, or taking the concept of real money gaming to a new level, blockchain is really making its mark on the full spectrum of gaming.

Digital Ownership 

One of the most profound changes blockchain has brought to gaming is digital ownership. In traditional video games, the in-game items you earn – whether it’s a rare item or an exclusive character skin – are technically owned by the game developer. Players may spend hours (and their pennies via microtransactions) to acquire these items, only to be locked into the game’s ecosystem. Once that game is no longer supported or if your account is banned, your items are gone for good.

Blockchain flips that model on its head by introducing digital assets like non-fungible tokens (NFTs) to the gaming world. These unique digital assets are stored on the blockchain, giving players full control and ownership of their in-game items. NFTs allow you to trade, sell, or even transfer these assets across different platforms or games. The result? A new gaming economy where players have genuine control over their virtual belongings.

Play-to-Earn: Revolutionizing Player Engagement

Here in 2024, we’re all pretty familiar with the concept of playing games with prizes or financial incentives. The iGaming sectors, particularly online casino verticals, pull in huge gaming audiences across the globe. Whether it’s playing several rounds of blackjack online or taking part in online gaming tournaments, there’s a huge appetite for all sorts of play to win types of games. In fact, blockchain enthusiasts should be grateful to iGaming pioneers for laying the groundwork for the emergent play to earn model.

P2E gaming is another key factor that’s boosting the popularity of blockchain gaming with diverse audiences. Under this model, players have the ability to earn digital assets like NFTs and crypto tokens just by participating in a game. While a small initial upfront investment is often involved to be part of the rewards-based ecosystem, P2E games are far from the pay to play model that we’re more familiar with.

P2E gaming also differs from traditional video games in that the rewards that are earned have real-world value. In conventional gaming, digital assets are only worth something within the game. However, in the P2E sector, ownership of things like character skins or NFTs transfers to the player, meaning they can then sell or trade their items in decentralised marketplaces.

Decentralised Marketplaces 

Blockchain gaming isn’t just about rewards and  ownership – it’s also about freedom. Decentralized marketplaces are the engines powering this blossoming gaming economy, enabling players to trade their hard-earned items with others. By eliminating the need for intermediaries, these blockchain-based platforms can enable peer to peer exchange with full transparency.

Web3 ecosystems thrive on platforms like OpenSea, a marketplace where players can buy, sell, and trade a whole host of digital assets. In 2021, OpenSea saw over $10 billion in trading volume, much of it driven by gaming-related assets. As blockchain games continue to grow, so too will the market for these items.

Creating a Trustworthy Environment

Crucial to the enduring popularity of blockchain gaming is enhanced security. All blockchains operate on decentralized ledgers, which means that every transaction or piece of data occurring in web3 games – be that an indie game built on the Polygon chain or one of the premium titles from mainstream gaming companies – is immutable. This means that no one can tamper with the data or transaction once it’s been entered, resulting in more secure game results, player balances and in-game assets.

There’s another beneficial aspect to using blockchain tech as a platform for gaming experiences. These digital ledgers are public, promoting transparency and ensuring gamers can view all results and transactions as and when they occur.