Virtual money has been an integral
part of gaming, and hence gamers are clued to the concept of cryptocurrency. If
gamers recall, in the game World of Warcraft, the earmarked currency was
digital gold.
The use of cryptocurrencies in
computer games has been arousing the interest of a vast community of players.
It also enhances the popularity of games in which the player has ownership over
actions and the consequences of actions.
Blockchain for gaming is being seen
as made for each other. Blockchain solves many legacy problems inherent in the
gaming sector. The concept of Non Fungible Tokens (NFT) and decentralization have
opened new value arenas for game players and game design and game development companies worldwide.
Players can now own their
assets, and developers need to be dominated by the monopoly of the big gaming
studios.
The Transition from Free2Play to Pay2Win to Play2Earn
For the most part, the gaming sector
has been earning through microtransactions, through the Free2Play route. This
model helped build a 159 billion dollar industry.
However, the balance started
tipping in favor of those who had the income to undertake the
microtransactions. So, ultimately it went to a Pay2Win model where the whales
who could buy their way to winning had the edge over the other players.
This
leaves a sense of dissatisfaction amongst the other players, seeing them reject
the predatory tactics of developers.
With Blockchain gaming and NFT, the
Play2Earn model is gaining prominence. This open market play incentivizes
players, giving them ownership and control of assets, thus enabling a monetary
revenue stream for them from playing.
Related post: Gaming Industry Trends
Creating earning opportunities instead of spending helps create sustainable digital economic ecosystems with flourishing secondary and tertiary marketplaces.
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The New Gaming Economics with Blockchain
Developers have always taken inputs from players to help with game design and content. However, it has not translated into direct benefits for the player community.
Blockchain games embrace the open economy and allow gamers to redeem in-game assets for real-world money and reward them for their contributions.
Smart Contracts can enable contributors to earn royalty and earn recognition on items they helped to develop or create to expand the game.
Just as consumers in the real world can resell or earn money on assets, the concept is the same in Blockchain games. Players invest time and effort to mine assets and now own them to use, sell, or trade.
An example case is that of Blockbabies; Block Babies has made deep inroads into the NFT arena. Block babies are fuelled by blockchain technology, are decentralized, promote gamer ownership, and offer players the opportunity to monetize their NFTs.
