Blockchain Gaming and NFTs – The Future of Crypto

By Aleksandra Wilson
5 min read November 17, 2021
Gaming, CryptoDigest

The ever-expanding world of crypto never ceases to amaze us, and it seems as though everyone wants to be a part of this new realm. Subsequently, blockchain technology piqued the interest of many major sectors, gaming included. 

Yes, the gaming industry is one of the early birds that adopted this cutting-edge technology—an exciting clash of worlds, gaming, and blockchain. And believe it or not, people that have a genuine interest in blockchain are most likely game heads.

The rising demand for NFTs in the gaming industry only amplifies this riveting crossover. In this day and age, you can trade many rare and trending NFTs within games. So, we couldn’t help but wonder what this means for the crypto industry and what is the future of blockchain gaming? For more crypto news, read our Crypto Digest blog.

Blockchain is considered one of the key players of the financial technologies of the future, and it sees great potential as a trustworthy ledger concept.

CryptoDigest, Blockchain gaming

What Is Blockchain Gaming?

Before we begin, we have to address the blockchain gaming concept. It is a system based on cryptography that links blocks of data together in sequential order. Because every change can set a “chain” reaction and affect the entire chain, the data units on the blockchain are immutable and unique. 

The main distinction between regular games and blockchain games is the fact that each digital asset inside the game is unique. This is where non-fungible tokens, or NFTs for short, come into play. They are unique data units kept on the blockchain for these digital assets. This industry is called blockchain gaming. 

Play to earn is one of the central aspects of these games because the gamer earns unique NFTs or any other kind of cryptocurrency by playing the game. Merit-based advancements give you digital tokens that the player can convert into actual money. Or you can keep playing. It’s up to you.

And now for the exciting part. Since every NFT is one-of-a-kind, blockchain has made the concept of digital asset ownership possible. If an asset is stored on the blockchain in the form of an NFT, the owner can claim his rights to sell or keep the asset. Let’s say artwork, even though this system works much better for the gaming industry.

NFT, Cryptocurrencies, Gaming

Full Control

Blockchain gives its users full control over the digital asset they earn by playing these games. For example, if the players spend real money on digital assets in traditional games, they might lose access to them if the server crashes. The developer has the rights. 

In the case of blockchain games, both the assets and the money remain in your total ownership, whatever happens. These assets can be traded with other fellow players, sold for real money, and possibly used across different game universes. The possibilities are endless, really.

Terms in Blockchain Gaming

We’ve come to the part where we list the most important terms of these games. Each player needs to know this, so pay attention.

  1. Play-to-Earn – this paradigm applies to most blockchain games. Players receive digital assets in turn for playing the game. Taking part in in-game economies also has its rewards, like skins, weaponry, and other gaming items. 
  2. Pay-to-Earn – an up-front, in-game asset purchase must be made, which is often an NFT. Just like with the play-to-earn model, the item’s worth can increase in value over time.
  3. In-Game Asset Ownership – most gamers are cautious when buying in-game assets that are non-transportable. The developer usually governs them, and if the site goes down, the players lose all investments. By tokenizing in-game assets, the developers can own these assets fully.
  4. GameFi – the play-to-earn and pay-to-earn models are also-known-as GameFi. This term is made to emphasize the earning potential of the gaming industry.
Blockchain gaming

NFTs

According to sources, the global market capitalization of NFTs revolves around $2.5 billion as of the beginning of 2021. This is quite a number when we compare it to the previous year and a market cap of $13.5 million. More and more gaming companies are taking part in the blockchain gaming trend now that NFTs are going strong. This only underlines future potential.

Conclusion

Finally, we can conclude that blockchain gaming might disrupt the traditional gaming industry after observing the ongoing trends. Generally, blockchain gaming sees a lot of future potential, as all numbers suggest. A current prediction states that there are around 1 billion online gamers out there, and still rising. This can only increase the significance of this trend if more new players opt for blockchain.

Suppose we know all of this information and that blockchain keeps track of in-game items like experience points, weapons, and skins, making them unhackable. In that case, we can deduct that the gaming industry, in collaboration with crypto, might be a fertile ground for future growth. Heck, it might even be the dynamic duo of the inevitable crypto future! 

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