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Manasvi Singh is the Co-Founder & CMO of OneTo11.
Blockchain technology is foraying into multiple sectors from finance to healthcare but perhaps its most revolutionizing venture has been in the gaming industry. From a zero-value market size, the blockchain gaming industry grew to $3 billion in 2021. Furthermore, it is projected to rise to $39.7 billion by 2025. Fuelled by NFT (Non Fungible Tokens) generation capabilities, free-to-play and play-to-earn models, the blockchain gaming industry has attracted over 1.5 million diverse gamers across the globe.
By leveraging technologies like NFTs, blockchain games are making ownership of in-game assets easier, economical and trustless. The endless possibilities of blockchain technology in the gaming world are attracting millions of gamers and investors from across the globe. Despite the strong growth trends and potential for profit in the blockchain gaming industry, the market abounds with challenges and obstacles. Let us dive deeper into the world of blockchain gaming and understand its key drivers and challenges.
What is Blockchain Gaming?
Blockchain gaming refers to games built on blockchain frameworks or games integrated with blockchain technology to facilitate NFT creation, trading and ownership capabilities. The collision of the two worlds of blockchain and gaming has created new opportunities for the gaming industry. Unlike traditional, highly centralized games, where the game developers controlled all assets and currency, blockchain games are decentralized. Blockchain games aim to disperse in-game assets to their players, and these assets have value beyond the games. In blockchain games, cryptocurrencies and NFTs are used for purchasing in-game assets that can be exchanged for cryptocurrencies and real-life money. So, from the moment a gamer earns an NFT reward, players gain full ownership of these assets, which can be traded and sold in and outside the games.
Rewarding Gamers with Play-To-Earn Model
The key selling point of blockchain games is the possibility of earning rewards while playing games. Earlier, gamers would spend hours playing games with no possibility of earning and would even pay money to play games. With the advent of blockchain games, players can monetize their time, skill and efforts spent in playing the games. For example, in blockchain-based games, players can earn rewards like cryptos, weapons, avatars, skins, coins, etc., and they get full ownership of these assets. These assets have value beyond the purview of games and players can make money for their gaming skills. Some gamers have already made such games into their consistent source of income.
NFT Generation Capabilities in Gaming
The possibility of generating NFTs and cryptos in blockchain games has attracted millions of gamers across the globe. Since these NFTs are not exclusive to the games, they can represent digital and real-world assets. As a result, NFTs enjoy a wide range of use cases and practical applications that appeal to gamers. Through blockchain technology, gamers can earn NFTs, exchange with other players or even move them into other supported games. The NFT and crypto generation capabilities have the potential to spawn gaming economies. Their uniqueness, trustless environment, interoperability and security are inspiring many developers and gaming platforms to venture into the blockchain gaming world.
Surge in Blockchain Gaming Platforms
As blockchain technology continues to take the gaming industry by storm, more and more game studios and developers are partnering with blockchain platforms. Blockchain gaming platforms across the globe have received billion-dollar valuations. Some of the world’s biggest gaming companies are investing in blockchain gaming platforms. Microsoft has acquired Activision in a $68 billion deal, and Ubisoft has joined the blockchain ecosystem with NFT launch. Even in India, popular blockchain-based platforms are trying to revolutionize the gaming industry. What’s more, the availability of blockchain games on smartphones and over the internet is driving countless users to play blockchain-based games.
Key Challenges to Blockchain Gaming
Although the adoption of blockchain games is surging worldwide, their growth trajectory is encumbered with several challenges. The foremost is the lack of awareness about blockchain and NFT technology. Despite having heard of these technologies, people still consider them as mere buzzwords and have not given proper attention to blockchain-based games and their advanced benefits. Additionally, the regulatory framework surrounding cryptocurrencies and NFTs have discouraged many players and developers from exploring blockchain games. In spite of deep internet and smartphone penetration, the infrastructure of data connectivity is still suboptimal in a lot of developing and underdeveloped nations. Language limitation on these games is also a major roadblock for gamers in different parts of the country. As a result, the blockchain gaming industry is still at a nascent stage in India and abroad.
Wrapping Up
Blockchain gaming is still a new concept and is sometimes clouded with confusion, questions and uncertainties. In the coming years, as more and more game studios venture into the world of blockchain gaming, the mis-conceptions surrounding blockchain can be lifted and mass awareness can be created. Further, the emergence of new gaming platforms and changing customer expectations are also set to push barriers and take the blockchain gaming industry to new heights. By offering ownership of in-game assets, reward and income-generating possibilities and social interactions, gaming platforms can leapfrog the many challenges and create gaming ecosystems and economies in the future.
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Views expressed above are the author’s own.
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