Blockchain Video Games and How They Work
Blockchain has rapidly influenced several industries, and the gaming world is quickly becoming another. Video games using blockchain technology, also known as crypto or NFT games, are transforming how players interact with digital worlds, offering new ways to earn, trade, and truly own in-game assets.
How Blockchain Video Games Operate
Blockchain’s main principle is decentralization, and blockchain games are no different. Blockchain technology publicly authenticates ownership and transaction records of in-game items on the blockchain. In-game items, represented by non-fungible tokens (NFTs), can include anything from rare skins and characters to virtual real estate. Players have full control over these assets, allowing them to trade, sell, or even rent them for cryptocurrency. The cryptocurrency can often be exchanged for real-world money, creating an avenue for players to generate real income through their in-game activities, coining the phrase “play to earn.”
Blockchain Video Games to Know
Very few blockchain games have earned widespread attention. Axie Infinity, for instance, allows players to earn tokens through battles and breeding adorable, digital creatures called Axies. CryptoKitties lets players buy, sell, and breed one-of-a-kind digital cats. Another crypto game that has garnered some mainstream gamer attention is The Sandbox, a virtual world where players can create, own, and monetize their experiences using blockchain. The Sandbox reminds me of VRChat, but with crypto monetization.
Who's Playing Blockchain Video Games?
Because of their understanding of blockchain mechanics, digital wallets, and NFTs, blockchain games naturally attract mostly cryptocurrency investors and tech enthusiasts. However, blockchain developers are having a difficult time marketing NFT games to mainstream gamers. NFT game developers are actively working to expand the appeal of blockchain games to mainstream gamers. They are simplifying user interfaces and providing more intuitive gameplay experiences; the crypto gaming audience is gradually expanding, although challenges remain in drawing a significant non-crypto crowd.
Why Blockchain Games Haven’t Gone Fully Mainstream
Though blockchain gaming is something new and can bring new earning opportunities, these games haven’t fully caught on with the gaming community at large. Several hurdles stand in the way. First, blockchain technology may be overly complex to many gamers, especially those unfamiliar with cryptocurrency and the technicalities of owning and trading NFTs. Also, most crypto games require setting up a crypto wallet before starting the game, while most gamers just want to login and play.
Another barrier to crypto gaming going mainstream is that they can feel more like investment platforms for the well-to-do gamers than traditional games designed purely for fun. The average gamer is not going to pay $3,000 for an NFT. Emphasis on earning and trading assets is in opposition to the average gamer, as gamers prefer story-driven games, showing off skills, and social interaction in their gameplay.
Challenges to Bring Crypto-Gaming to Mainstream Gaming
Crypto games indeed have a learning curve. To play crypto games, you have to set up a crypto wallet and learn that particular game’s rules and regulations on buying, selling, and trading NFTs. With more traditional games focusing on accessibility with simple sign-ups and smooth onboarding processes, crypto games fall very short. Blockchain games, on the other hand, require gamers to learn about crypto wallets, tokens, and transaction fees, which can feel overwhelming for a typical gamer.
Some crypto games also have stringent requirements to even play the game, including needing a pass from an approved content creator and paying for an entrance pass (one company tried to convince me by bragging about how top influencers paid $5,000 and some $10,000 for a pass to get in on the action).
Also, some blockchain games have high transaction fees—too high for the average gamer. Some countries have outright banned or have strict regulations for how cryptocurrency is used, which has further complicated crypto gaming’s expansion.
Credit: Getty Images/Vanessa Nunes
The Road Ahead for Blockchain Video Games
Although crypto games continue to face obstacles, blockchain technology continues to evolve. The crypto gaming niche is likely to see improvements in user experience, scalability, and accessibility. More user-friendly interfaces and lower transaction costs could make these games far more attractive to the average player.
Developers are also working on creating blockchain games with broader appeal, focusing more on the gaming experience itself rather than just the financial aspects. If these games can combine the best aspects of traditional gaming with the benefits of blockchain technology, they could begin to attract a larger and more diverse player base.
That will not be enough to hold the average gamer’s attention. Though it’s not a crypto game, Throne and Liberty has a model that uses real-world money for in-game transactions via the auction house. Players can buy Lucent, the game’s in-game currency, with real world money. A similar model may work for a crypto game, provided that game has a great story, is visually stunning, and is accessible. Most of the crypto games I’ve come across are none of these things and only serve as a playground for people with money.
Ultimately, the success of blockchain video games will depend on how well developers can integrate blockchain technology into fun, engaging gameplay that appeals to a wide audience—not just crypto enthusiasts. Matt Cheng, Founder of Cherubic Ventures, suggests blockchain game developers “focus less on battle games and more on mission-based, story-focused experiences to create a stronger gamer culture and identity along with deeper emotional connections to the game.”
Frequently Asked Questions
What are blockchain video games?
Blockchain video games are digital games that use blockchain technology to authenticate in-game transactions and allow players to own and trade unique digital assets as NFTs.
Can you make money from blockchain video games?
Yes, players can earn cryptocurrency by playing blockchain games. This currency can often be traded for real money, creating a financial incentive to participate in these games.
Why are blockchain games not more popular?
The complexity of blockchain technology, high transaction fees, and the perception of blockchain games as financial tools rather than entertainment have limited their mainstream appeal.
Do I need a crypto wallet to play blockchain games?
Yes, most blockchain games require players to set up a cryptocurrency wallet to manage in-game transactions and store NFTs.
What’s the difference between traditional games and blockchain games?
In traditional games, the game developer or platform owns the digital assets, while in blockchain games, players own their assets and can trade or sell them freely.
Are blockchain video games safe?
As with any technology, blockchain gaming comes with risks, including the potential for hacks or scams. However, the use of blockchain also adds layers of security and transparency to in-game transactions.
