Web3 gaming is roughly 3 years old as an industry and saw its highs and subsequent lows like all narratives in the following years. With the most popular that kicked off its season into the mainstream being Axie Infinity.
In this game, players jump into a competitive environment where they can earn various in-game assets such as weapons, skins, and other customization items through gameplay. These assets are not just virtual items but are represented as NFTs, making them tradable and potentially valuable beyond the game itself.
The recent cycle in crypto gaming was different, and introduced the concept to a broader audience and proved its viability on a larger scale. A refinement of game mechanics going from basic games to more intricate and graphically intensive AAA titles.
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What is Play-to-Earn?
Play-to-earn (P2E) models disrupt the traditional gaming economy by allowing players to earn tangible economic value through their gameplay. Instead of a model where only a small fraction of paying players support the game’s revenue, P2E models incentivize all players to contribute to and benefit from the game’s economy.
This is achieved through tokenized game currencies and assets, such as (online) real estate, character skins, boosters, and so on… These items hold real-world value and can be traded or sold among players, creating a self-sustaining economy.
The focus even has shifted towards developing economic systems that encourage more than just initial participation. One effective model is the peer-to-peer economy, where players can specialize in the game and create value for others.
What Does It Actually Mean to Own Your Game Items?
Ownership of game items in the context of blockchain means players have full control over their digital assets. These assets could be anything from in-game gear, characters, skins, or any other items that players find or earn while playing.
Creators behind popular blockchain games believe that players should own their data and their in-game assets.
How Can Blockchain Prove What Players Have Achieved?
One of the unique aspects of using blockchain in gaming is its ability to provide proof of ownership. As it allows for the creation of a permanent, immutable record of all transactions and achievements. A capability that is significant because it offers a way to verify and showcase a player’s history in a way that cannot be faked or disputed.
In MMORPGs, the core gameplay involves enhancing one’s character or equipment and tackling increasingly challenging objectives. Blockchain enhances these experiences by adding a layer of ownership and value to the in-game assets.
Read Our Detailed Reports on Crypto Gaming Projects
Connection to Metaverse for Gaming
The concept of the metaverse is becoming increasingly relevant as it represents a collective virtual shared space, that is created and a second home of digital reality.
Because the metaverse is still young, gaming assets might not be confined to a single platform but could be utilized across various virtual environments. An interoperability that even could extend to social media profiles and even more than we can imagine. Therefore many games go hand in hand with metaverse narratives.
Why Could The GameFi Narrative be Interesting?
We are currently living in what can be called the golden era of play, with the gaming industry predicted to generate approximately $186 billion this year alone. The global gaming population is estimated at around two and a half billion, making it significantly larger than industries like movies, music, and sports combined.
Mobile gaming radically expanded the gaming demographic, transforming it from a niche hobby for dedicated gamers to a mainstream pastime. The shift from hardcore gamers from the console era to mobile gaming adds to the vast number of casual gamers who had never participated in gaming before.
Crypto games are starting to mirror the trend seen in mobile gaming by attracting not just traditional gamers but also non-gamers who are investors or collectors of digital assets like NFTs.
Challenges of Crypto Gaming?
The unique aspect of crypto gaming lies in its ability to merge entertainment with financial incentives. While building a great game is essential for player retention, the real power of blockchain in gaming is its potential to offer benefits that go beyond the gaming experience.
This includes creating a sustainable economic architecture that do not solely rely on hyperinflationary token emissions—which is a model that has repeatedly failed over and over again.
So another challenge is that developers face significant challenges when creating complex crypto games, and need to balance the need to generate revenue early in the development process with the necessity to deliver a polished final product. Some games only launch a game on testnet or keep it at a trailer to drive up token prices.
