Blockchain gaming became a thing in 2017 when a Canadian studio Dapper Labs launched Crypto Kitties, the first known video game that used blockchain technology.
In Crypto Kitties, players would purchase virtual kittens (NFTs) with Ethereum cryptocurrency and breed their pets to create new NFTs. The game made news when one of its NFTs sold for more than 100,000 USD.
And even though the fall of Crypto Kitties was almost as sudden as its rise, it paved the way for other blockchain games, such as The Sandbox and Decentaland, marking a new era in the gaming industry.
Image source: cryptokitties.co
While there are many skeptics of crypto games, big gaming companies such as EA and Ubisoft openly embrace blockchain gaming and are looking to incorporate the concept. Plus, gamers are already making serious bucks off crypto games!
In this article, we will explain in simple terms:
- what a blockchain game is;
- how it differs from a traditional video game;
- how to start playing blockchain games;
- and what’s the key difference between a good and bad blockchain game.
We will also briefly go over making money from Web3 gaming and give a short list of some of the most promising blockchain games.
Let’s get to it!
What is a blockchain game?
To understand blockchain gaming, you must first familiarize yourself with its technology. We have an in-depth article on blockchain here if you want to dig deeper, but here's a simple explanation for those in a hurry.
Blockchain technology 101
Blockchain is an extensive electronic database that records cryptocurrency transactions. It is distributed around the globe across multiple devices and can be viewed by anyone.
Image source: unsplash.com
Key blockchain features:
- Data transfers can be made without intermediaries like governments or banks.
- It’s uncensorable – data cannot be changed.
- It’s decentralized – no single person or entity owns a blockchain.
- It offers provable ownership.
- It allows for a provable scarcity.
- It allows tracking transactions.
Blockchain games
A blockchain game (also known as a crypto game or NFT game) is a video game that uses some elements based on blockchain technology (usually, crypto and NFTs).
For example, players may need to pay a fee in crypto or hold certain coins in their wallets to start playing a blockchain game, where they can buy, sell, or trade crypto game assets (NFTs) with other players. Game developers monetize these transactions by taking a free each time they happen.
Blockchain games vs. traditional games
Let’s explore how blockchain gaming works by comparing it to typical gaming systems.
Both gaming types start in the same place:
- You buy the game.
- You play it.
- You get rewards through gameplay and use them to improve your stats as you go.
But, once you turn off the game, things can get wildly different.
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Players own their in-game assets.
The main difference between traditional and blockchain games is that, with blockchain, players genuinely own the in-game assets that they earn.
With typical gaming systems, your earned in-game items, such as weapons and gear, are only valuable to you while playing the game. If something happens to the game or you stop playing it, those items are of no use to you anymore – they’re not your property.
However, with blockchain-based games, your earned items hold value outside of the game. Even if the crypto game ceases to exist, you still own your crypto items and, for example, can sell them as long as there’s someone willing to buy them.
This fundamental difference lies in the concept of decentralization.
Traditional video games are centralized, meaning players have no real say in the game or influence on its direction. However, blockchain-based games are decentralized (no single entity owns them), enabling transparency and proof of ownership.
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In-game assets can be transferred to other games.
Another essential difference between blockchain and traditional video games is that in-game items (swords, shields, etc.) can be used in another game – even if it’s from a different game studio.
Let’s see how that would work.
Image source: wired.com
With traditional gaming systems, say, a first-person shooter CS:GO, a rare skin will only be usable in the game’s realm. You can’t use the CS:GO skin you unlocked (or bought) in World of Warcraft – you will need to play WoW to use its gear.
However, blockchain technology and its decentralized model not only grants ownership of items outside the game but also allows using them across other blockchain games. A game creator who uses blockchain technology could check the blockchain (e.g., Ethereum) to see what users own (this information is available publicly).
For example, let’s say you have been playing a blockchain equivalent of CS:GO and have a rare Doppler Sapphire skin for your knife in your crypto wallet. This game creator, working on a blockchain trading card game, could check your Ethereum address, see that you own this skin, and decide to incorporate it into their game.
So, when you join their new game, you will be able to use it – the Doppler Sapphire skin from the blockchain equivalent of CS:GO will be in your game inventory.
Of course, if it’s a trading card game, you won’t see the exact skin, but its equivalent. For example, you could have a Doppler Sapphire trading card with a rare spell.
And then, another game creator could use the same item in their own unique way. The original Doppler Sapphire skin could become a trading card, weapon, or anything else that fits the game’s realm.
Key takeaways:
- Blockchain game items are officially owned by a player.
- This ownership is recorded on a blockchain, and everyone can see it.
- Thanks to decentralization, items exist outside of the game’s realm in blockchain games.
- Players can sell their crypto assets on an external market, convert them into cryptocurrency, or use them in another blockchain game.
- Such items have unique advantages over items from traditional gaming systems – they hold much more value.
- Game developers can check what items users hold and decide to incorporate into their game.
How to begin playing blockchain games?
First, you must have some cryptocurrency in your wallet. If you don’t have any, you won’t be wrong to go with the Ethereum blockchain since many crypto games are built on it. However, you will still need to research what kind of cryptocurrency is best for you.
Watch Wizardia’s gameplay stream with the game’s CEO here.
For example, Axie Infinity is built on the Ronin Network, an Ethereum-linked sidechain, and its cryptocurrency is “Axie Infinity Shards/Token" (AXS).
To choose the best NFT game to play, consider these questions:
- How much investment is needed to start playing?
- What’s the tokenomics of the game?
- How trustworthy is the crypto project?
- Are crypto enthusiasts bullish about the game?
The key difference between a good and bad blockchain game
Make sure it’s a game with crypto features (like Wizardia) instead of a crypto project with game features. It’s a huge difference to learn, and what’s going to be the big difference between a successful project and a massive failure.
Why? Blockchain games rely on a player-driven economy.
Web3 games, even though heavily focused on earning money through gameplay, need to be fun. We elaborate more on the topic in our article Why Aren’t the Majority of Web3 Games Fun to Play?, but here’s the main idea to carry with you:
“It’s obvious that for a pay-to-win system to work well, the game needs to be interesting
and engaging enough to make people want either to spend hours grinding for those elusive gems to upgrade their characters or open their wallets to bypass the time and effort needed to progress through the content.
Making fun games that are addictive and have levels of progression attracts players that want to become the top “endgame” players. These gamers will happily spend money inside the ecosystem.”
Consequently, blockchain gamers who make frequent in-game purchases drive the game’s ecosystem and make more money for themselves, too.
How to make money from blockchain games
You can make serious money with blockchain gaming! There are two ways to milk the cash cow: playing the game or investing in it.
Image source: cybavo.com
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Play-to-earn (P2E) games
You’ve probably heard of play-to-earn (P2E) games. Most blockchain games use the play-to-learn model, where players are compensated for successful gameplay. Gamers can participate in in-game economies and buy, sell, and trade digital assets such as skins and weapons.
The most devoted crypto gamers can also receive rewards for upgraded characters and items, and those with artistic aspirations can create and sell collectible NFTs themselves. Earning possibilities are enormous, bearing in mind that blockchain game developers are still in the early stages of the Web3 era.
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Investing
Blockchain games also allow you to make passive income by investing in games and their native crypto coins. Some even do it full-time!
With Wizardia, you can reap serious rewards both as a gamer and investor. See how much you could earn with Wizardia here.
Top blockchain games to play in 2022
Not sure where to start? Here’s a list of some of the most popular NFT games right now.
Wizardia – one of the best RPG games
Wizardia is a P2E role-playing strategy blockchain game with NFTs at its core and some of the most innovative RPG elements in the industry. The game takes you to a post-apocalyptic world where you assume control of Wizards and battle it out with other players. Character progression, crafting, and artifact upgrades are also a big part of the game.
Wizardia already has an impressive following of over 66K members of Discord and over 139K Twitter followers. Watch the game’s trailer here!
Splinterlands – one of the best crypto card games
Image source: esports.net
Splinterlands is one of the most exciting P2E crypto card games in the blockchain gaming market. Each in-game card comes with real monetary value, and players can rent their cards, too, allowing for great passive income opportunities. Also, unlike most blockchain-based card games, Splinterlands can be played both on mobile and desktop.
Decentraland – best game to build and monetize your own games
Image source: play.decentraland.org
The Sandbox world consists of LANDS. These LANDS are parts of the game’s metaverse, owned by players and used to create and monetize their gaming experiences using $SAND – the main utility token of the game’s metaverse. Players can use LANDS to create multiplayer experiences, build housing, and even create separate games and offer social experiences to other players.
How big is this game? Well, even Snoop Dogg has been developing his Snoopverse in The Sandbox, where he’s planning to host exclusive parties. It’s worth taking a look!
Read our complete list of the most promising projects in the crypto gaming market here.
FAQs
What are blockchain games?
Blockchain games are video games that use blockchain technology to help players earn crypto or non-fungible tokens (NFTs) through gameplay. Crypto assets you win become your property inside and outside the game, meaning you can sell, rent, or trade them on an online marketplace.
How do you use blockchain in games?
Blockchain technology is based on decentralization. So, when it comes to blockchain-based gaming, players can become a part of the game’s metaverse and contribute to its development.
Blockchain also allows verifiable ownership of the items players earn through gameplay. These items exist and hold value outside of crypto games, and players can make money off them by trading, selling, or renting them.
Finally, blockchain allows the transfer of in-game items to other games (even from different game developers), adding extra value to those items compared to traditional video games.
What are blockchain game risks?
Some blockchain games may need a large initial payment to start playing. So, you risk losing your investment if you don’t do well in the game. Some shady NFT projects can get you scammed, and you may also lose money due to typical crypto market fluctuations. To be on the safe side, always carry out your research on gaming platforms before investing.
How many blockchain games are there?
According to CoinDesk, a leading news site on crypto, there were almost 400 active blockchain games at the beginning of 2022.
Why are blockchain games popular?
One of the main reasons why blockchain games are so popular among players and investors is that, unlike typical gaming systems, they enable ownership. Crypto items earned through gameplay are valuable outside the game’s realm and can be traded, rented, or sold.
Julija Paškevičienė
Julija is a freelance content marketer. Specialized in content writing, social media, and finding the best dog memes, she helps businesses get their message across and create content that sells.
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