Crypto games are on the rise, and there’s no end in sight

The video game market was already exploding before cryptocurrencies came along to disrupt the industry — in fact, it’s estimated the market will hit $200 billion by 2023. Now, the fastest-growing segment of the gaming market is in crypto, and its growth is swift and furious. Some believe that the gaming market will be the first industry where blockchain technology and cryptocurrencies see mass adoption.

The future is blockchain-based gaming

For now, blockchain-based games are still a niche market, where the only comfortable users are those who are already initiated into the world of crypto. But what happens when the complexity and processes of the blockchain get abstracted away and users are left with intuitive interfaces and solid gameplay? This is the future of gaming on the blockchain.

Some might ask the question: what makes a blockchain-based game so much better than a game that doesn’t exist on the blockchain? The answer is:

• Immutability — Backed by the power of a public blockchain, no one can manipulate or attack the game using auto-clicker scripts, bot farms, or other digital manipulation. This reduces any risk of illegal gameplay or foul play within the ecosystem.
• Transparency — All game actions are published to the blockchain for public viewing. Nothing is hidden or opaque.
• Ownership — The game and its digital contents aren’t owned by a single entity. Instead, ownership lies in the hands of its users.
• Open-sourced — Developers can create their own spin-off games or digital goods to sell within the blockchain ecosystem, leading to theoretically endless game development.
• Micro-transactions — By allowing for micro-transactions that would not otherwise be possible on centralized payment platforms, users can earn rewards in real-time and be paid out instantly. Games using centralized platforms rely on costly payment processors that make micro-transactions not economically viable.

NFTs drive in-game assets

CryptoKitties was the first blockchain-based collectibles game that blew up the world of crypto. And while the underlying blockchain technology is what kept CryptoKitties secure, it’s non-fungible tokens (NFTs) that brought excitement and fun to the game.

NFTs are unique digital assets that can be used, exchanged, traded, or sold between any two parties. In the world of crypto gaming, NFTs are taking the form of in-game assets that players utilize within their favorite gaming worlds, or, they can also take the form of accessories for digital avatars for users to display their unique personal style.

What’s even more amazing about this technology is that eventually, NFTs will become tradable and usable across games and blockchain networks. This could mean purchasing an NFT on one gaming platform and using that same NFT on another platform. This type of interoperability brings an entirely new dimension for gamers in an industry that until now has been completely siloed.

Crypto in eSports

The eSports industry is booming and everyone wants in on the action. But eSports players are leery of new platforms and games, citing concerns over usability and cheating that cannot be ensured. But by using blockchain networks, eSports games can be provably fair and detect cheaters instantly.

Crypto has the ability to create more incentives for users to interact with their favorite games and/or eSports players. Users often play hours and hours of their favorite games for potential rewards. But crypto takes this up a notch by allowing for real-time rewards that can be paid out instantly. Even further, decentralized identity solutions can be used to track user play across games, and allow gaming providers to sync up in providing rewards across platforms.

The doors are opening

Until now, the world of digital gaming has been controlled by corporations and large tech giants. But that is all starting to change. Until now, Apple takes a 30% fee on all apps and in-app purchases from developers, while the company also prohibits all apps in its App Store from directing users to other sources for in-app purchases. But a recent lawsuit between Epic Games and Apple is set to render this policy useless.

Why is this important for crypto gaming? Until now, there was no way for blockchain-based games to integrate crypto payments if they were being distributed through the App Store because of the previous policy. Additionally, Apple had been blocking apps from its App Store that were working within the cryptocurreny ecosystem, like in the case of Gnosis Safe However, with the court’s decision, the free flow of crypto payments within apps is now open. This could have huge implications for integrating crypto into already-existing games or bringing about a new generation of crypto games to the market. For instance, those NFTs that were previously mentioned can now be integrated within apps sold on the Apple App Store. This represents a huge win and potential growth for all of crypto gaming.

Follow the money

If you were ever skeptical about the growth of crypto in gaming, all you need to do is follow the money. The figures within the industry are already astounding:

• NBA Top Shot eclipses 1 million users and $700 million in sales
• Axie Infinity hits $2 billion in sales
• Blockchain gaming companies raised a total of $476 million at the beginning of 2021
• Forte — a blockchain gaming platform — raised $185 million at a $1 billion valuation

Usability and gameplay are still problems

With all of the hype surrounding crypto games, it can be easy to get lost in the noise. Sure, collectible games like CryptoKitties are nice, but they won’t impress true gamers who want interactive and complex gameplay. And current popular crypto games like Alienworlds and Cryptoblades are poor in their gameplay, user experience, and depth.

Take a wildly popular game like Hearthstone as an example. The game features digital collectible cards that allow users to battle against one another in active gameplay. Hearthstone has gotten so popular that in 2020 alone there were 23.5 million active Hearthstone players interacting across the globe. It not only features a digital collectible element but interesting gameplay and graphics as well.

In the future, it’s likely a similar game to Hearthstone will be created on the blockchain. This game will use non-fungible tokens as digital assets with which players can trade and use in-game while also providing trust and immutability that gamers have come to appreciate. It could be created by an independent developer, or, even a mainstream gaming company that dips its toes in the crypto waters. One game that is already attempting to do this is Gods Unchained, a crypto-based digital collectable game that puts ownership in the hands of users.

Until new games like this come on the market, crypto gaming will still take a backseat to the games released by traditional game developers. But don’t sleep on this technology, because before you know it, the most popular games on the market will be operating within the world of crypto.