The Blockchain Gaming is The Future

As a result, sales of tokenized assets and subsequent royalty proceeds represent the key monetization strategy. In this new business model, game creators and players have aligned motivations because both gains as the game's tokenized assets increase in value.

The idea is that gamers should own the content they earn, or at the very least, have more ownership in the digital environments in which they spend a considerable amount of their time and money.

Problems Currently Faced by Traditional Gaming

Players don't truly own anything

Last year, gamers spent more than $50 billion on in-game items such as clothes, weapons, and power-ups. These purchases usually improve a player's performance and enjoyment of the game. They have no other use, and you can't sell, lend, or collateralize them. They now fall into entertainment spending rather than a serious investment.

Interoperability across games is limited

For the most part, today's games are still walled gardens. They are separate planets with their own set of things and experiences. Game makers should have complete creative authority over their work. 

Lack of business model optionality

Free-to-play (or 'freemium') games account for 80% of overall digital gaming income. Most successful paid games, such as CS: GO, are based on skins. This trend has benefited players—paying $0.99 for a mobile game is almost unheard of, but it has limited the design area available to some developers. As new economic models for game producers arise (such as commissions on secondary NFT purchases), new forms of gameplay will emerge.

Properties of NFTs Which Gives a Boost to Blockchain Gaming  

NFTs are a significant value proposition in different blockchain games and operate as a primary primitive for blockchain assets. NFTs in blockchain games bring a variety of advantages to games, including asset ownership, asset programmability, new incentivization, and innovation options.   

Ownership of Assets   

The game creator controls and owns in-game assets rented out to players in legacy games. In contrast, players in blockchain games retain actual ownership of their digital assets, whether in-game currency or more specific investments such as skins account names, in-game land, or other assets.

The programmability of Assets   

NFTs can be programmed to have varied attributes or be constructed with in-game utility because they are essentially software on blockchain networks. NFTs can be programmed with various unique use cases, such as single-use, unlocking content, or awarded to users that achieve a certain status.

Incentivization and Innovation   

Game developers are already amongst the most knowledgeable when it comes to incentives. NFTs offer an additional layer of economic incentives by enabling players to earn yield-generating assets and build a more robust gaming economy via in-game currencies and NFT marketplaces.   

Some of the Popular Blockchain Games  

Axie Infinity  

Axie Infinity is an NFT-based online video game inspired by Pokemon Go. It was the first metaverse project to introduce a play-to-earn gaming model. Axie Infinity is present on the Ethereum blockchain and has two cryptocurrency tokens associated with it, i.e., AXS, a governance token that holders of tokens can use to vote on governance proposals to decide the future of the game. Beyond that, AXS holders can stake their tokens to earn more AXS tokens.  

Smooth Love Potion (SLP) is the second cryptocurrency token linked to Axie Infinity. Players here raise, breed, and combat their Axies (digital creatures), earning Smooth Love Potion tokens for each victory in-game.

Axies and digital land are NFTs that players may purchase and sell in the game, while SLP tokens can be sold on exchanges.

The Sandbox

The Sandbox is a decentralized community-owned virtual world where creators can create their avatars. Sandbox and Roblox are frequently compared by analysts owing to their comparable gameplay. The main distinction with Sandbox is that players have complete control over their virtual assets. 

The Sandbox has an ERC 20 token called SAND. It is used as both a utility and a governance token. To buy and sell NFTs like LAND and assets in the Sandbox's marketplace, you will need SAND. In addition, the SAND token is used for participating in governance functions.

Decentraland 

Decentraland is a virtual environment where users can buy land, develop it, monetize it, and immerse themselves in other users' applications and content. The community owns the Decentraland project in a decentralized manner. It is powered by Ethereum's blockchain. 

In Decentraland, gambling casinos draw a large crowd on special event nights. Players can win prizes by participating in events. The native token of Decentraland is called MANA. It is a cryptocurrency that may be used to buy and sell LAND and assets on the MANA marketplace.

Splinterlands 

Splinterlands is a blockchain-based digital collectable card game inspired by games like Magic the Gathering and Hearthstone. Players build a huge collection of cards with different properties and compete against other players in skill-based battles. Players can buy or sell their digital assets on the marketplace, just like they play in traditional card games such as Pokémon, Magic the Gathering, and Yu-Gi-Oh. Unlike conventional trading games, Splinterlands makes it relatively simple for users to buy and sell items. 

Splinterlands' native token is SPS. Owners of SPS tokens have the power to shape the game's and ecosystem's future. Owners of SPS tokens may also propose changes to the tournament calendar, fighting parameters, or DEC inflation pools.

Thetan Arena  

Thetan Arena is a Blockchain-based e-sports game. Coins can be earned by forming a team and competing against other teams. The gameplay in Thetan Arena is built to win battles by using a combination of your abilities and teamwork. Players can choose from various game types, including MOBA and Battle Royale, which have regular upgrades and lucrative rewards. 

In contrast to Axie Infinity, players are not required to pay a fee or have any non-fungible tokens (NFTs) before playing. THG is the native token. THG token holders can take part in governance functions.     

Difficulties Faced by Blockchain Gaming   

The most significant barrier to the junction of blockchain gaming is scalability, which is a well-known issue. 

While still in its early phases, the trend indicates a general lack of long-term viability for blockchain-based gaming. During network congestion, gas costs on Ethereum can be prohibitively expensive, and several formerly promising gaming dapps have faded into oblivion after launch.

For the time being, centralized games and gaming platforms have distinct benefits versus blockchain-based games. Attractive hybrid solutions like Ethereum-based Gods Unchained, on the other hand, may offer some insight into how centralized and decentralized models can be blended.

The current scope of games built on a blockchain network is another issue caused by scalability limits. Many games are simple adaptations of popular mobile games or collectible-focused games due to slow network speeds and a lack of developer engagement.

This isn't a long-term issue as initiatives like Decentraland, which focuses on developing three-dimensional worlds and games, are beginning to turn toward more ambitious aims. 

The scalability issue will ultimately determine which platforms will have the most interactive games produced and which will shift to a more non-fungible asset-focused paradigm. Regardless, scalability issues are now impeding the long-term viability of the vast majority of blockchain games.

Conclusion

Blockchain gaming will create various forms of monetization for developers and users. Players will be able to truly own their assets, and they will also be able to use their assets in different games. NFTs will play a key role in boosting the blockchain gaming ecosystem.

Currently, there are many problems associated with blockchain gaming. Scalability is the major problem that makes it difficult for blockchain gaming to reach the masses. The user experience of blockchain games is also poor in comparison to traditional games. There are many problems that are slowing the growth of the blockchain gaming ecosystem. It will take some time to solve these problems, but once they are solved, the growth of blockchain games will be exponential.