While the online gaming industry has been around for a while, it experienced tremendous growth during the pandemic as most people turned to it for their primary supply of entertainment.
While the online gaming trend was at an all-time high during the period, another evolution occurred. That is blockchain gaming. Blockchain technology has changed how we think about money, investments, and entertainment.
Cryptocurrency has started going mainstream, and game developers are thinking of ways they can leverage blockchain to give consumers a thrilling experience with their products.
How Does Crypto Gaming Work?
Crypto gaming features two elements; earning cryptocurrencies as gaming rewards and using NFTs.
How is crypto gaming different from traditional gaming? Traditional games are centralized such that resources from a particular game cannot be used in other games. In crypto gaming, decentralization allows gamers to own resources on gaming platforms and utilize them across different games.
This means the users can transfer rewards and resources they have purchased from one game to a different one.
In traditional gaming, the users often have only a single way of earning money through payouts. Blockchain-based gaming provides players with multiple ways to make money.
For instance, the players can buy characters, level them up and sell them for a profit. The players can collect a wide range of gaming assets and trade them. They can also make money through payouts, as with the case of traditional games.
Crypto gaming provides users with a whole new experience starting from how they earn money to how they feel about the games.
How Does Crypto-Gaming Work?
Blockchain-based games are fully decentralized and run on the blockchain.
For gamers to play a game on a blockchain, they must have non-fungible tokens (NFTs). The NFTs are in-game resources, whether characters, tools, digital deeds, or weapons. The value and types of NFTs players need will depend on the game.
For instance, if you are playing Binemon, you will need NFTs Binemons or eggs. When playing Axie Infinity, you need three NFTs Axies to play. When players buy the NFTs, they will not be stored in the game like in the case of traditional gaming; the digital assets are stored in their cryptocurrency wallets.
The player, at this point, has the actual ownership of the digital assets.
How to Play Blockchain-Based Games
Here are the steps to take to start playing crypto games.
1. Buy Ethereum
You need NFTs to start playing. The Ethereum blockchain holds NFTs; you will therefore need to have the cryptocurrency.
Open an account in an exchange and purchase Ethereum.
2. Transfer the cryptocurrency to your wallet
Once you buy the crypto on an exchange of your choice, choose an Ethereum wallet that you will use to transact NFTs. The NFT wallet should be user-friendly, support multiple devices, and feature cross-chain compatibility.
3. Buy NFTs and start playing
Depending on your game, buy the NFTs you need to play through the NFT wallet. The steps are easy, as all you have to do is connect your wallet to the NFT marketplace, find the NFTs you need, and buy through buy-it-now or auction-style types of sales.
What Are the Risks of Crypto Gaming?
While crypto gaming has several rewards that don’t come with traditional gaming, it also has some risks.
To some extent, blockchain games require a higher investment than traditional games. The high investment can become a barrier to most gamers. For instance, you will find that conventional games will not cost an average gamer more than $100.
To start playing a blockchain-based game, you may require up to $300; to play Axie Infinity, you need 3 Axies, and each costs $100.
You could also lose your NFTs to scammers or when you send the digital asset to the wrong wallet. The risk of fraud is higher on blockchain as it is not regulated.
Because cryptocurrencies are volatile, you also face the risk of loss due to significant price swings.
What Is the Future of Blockchain Gaming?
New developments are taking place to steer mainstream adoption of blockchain gaming. Tech investors are also pumping money into the space, and blockchain companies and game developers are interested in getting on board.
The blockchain gaming world is still in its teething stage. However, there is a lot of excitement from stakeholders as they look forward to the prospects of mass adoption.
Blockchain gaming is changing the way people play games and earn from them. The modern gaming approach is attractive to not only the players but also other stakeholders like blockchain companies, crypto investors, and game developers. It is geared to give users an immersive experience and more ways to earn from their hobbies. Just as it has its benefits, there are several associated drawbacks gamers should be aware of, such as addiction, high cost, and the possibility of losing their assets to scammers and volatility.