As new as the internet is in the grand scheme of things, it’s gone through a lot of changes. Its development can be split into three distinct numerical categories: we’ve been through Web 1.0 and 2.0, and now venture forth towards modern, decentralized platforms with Web 3.0.
But what does all of this mean for video games? This is where the world of blockchain gaming comes in: a merging of decentralized ledgers and online games that continues to grow larger every day. It’s a topic that can get complicated fast, so in this article, you’ll learn the fundamental concepts that underpin this new type of gaming experience, and what it might mean for the future.
First Things First: What is Blockchain?
While the term ‘Blockchain’ may be unfamiliar to you, you’ve almost certainly heard of cryptocurrency: a form of digital currency created by a public network that isn’t managed by any kind of central authority like banks or governments. The idea is that by cutting out the middleman, transactions can be made faster, safer, and with greater autonomy.
Blockchain forms the foundation of using cryptocurrencies to make transactions. A block represents the data of a transaction between two or more people, containing information pertaining to how many coins were transferred, the sender and receiver’s addresses, timestamps, and more. As the data included in a single block reaches capacity, multiple blocks are utilized and then linked to form a unified record, and this is where the name blockchain comes from. These chains combine to form digital ledgers that are highly resistant to alteration thanks to encryption. The beauty of blockchain is that it’s immutable: there’s no single entity that controls the system, making it a largely incorruptible way to exchange money.
These sorts of transactions are going on all the time and all over the world, with the whole system linked by thousands of computers. Regarding the currencies themselves, there’s not only one type. Bitcoin is the most famous coin that most people have heard of, but for blockchain gaming, Ethereum has become the standard.
Coin Mining
One of the most important elements of the crypto and blockchain system is coin mining, as this is how new coins are created in the first place. Miners set up powerful computers to solve the complicated mathematical problems necessary for adding transactions to the blockchain. As a reward, the miner is given crypto coins. While there are no minimum system requirements for mining as such, the more powerful a mining computer is the better. With many miners running multiple state-of-the-art computers at once, there’s often a very large amount of electricity consumed – not to mention the expense of setting up these machines in the first place – making the profitability of mining a complicated balance.
There’s a lot more that goes into blockchain than can be covered in this article, but now that you understand the basics, let’s take a look at how the concept relates to gaming.
Blockchain Gaming and ‘Play to Earn’
Let’s break things down into distinct chunks to better understand the more complex elements. So far, you’ve learned that blockchain is a decentralized ledger system that makes cryptocurrency possible. Cryptocurrencies themselves represent digital money that you’re able to earn and trade just as you would with the regular centralized currencies you use on a daily basis.
Blockchain gaming combines these elements into a platform that enables people to earn cryptocurrency by playing, and because these games are built from the ground up to run on blockchain technology, players have true ownership of what they earn in-game and are able to trade items across various platforms for profit.
Parallels can easily be drawn between how the above works and the in-game microtransactions that have become popular in regular games. The difference is that selling in-game items for profit is illegal as they don’t have real-world value, whereas with blockchain gaming, trading items for currency is the whole point. Essentially, players truly own their in-game items.
Non-Fungible Tokens (NFTs)
Most of this for-profit trading utilizes NFTs, which are the cornerstone of blockchain gaming. If you haven’t heard of the word ‘fungible’ before, it essentially refers to things that can be exchanged for something else of the same sort and value (money is a fungible item because you can trade one note for another of the same value). In that case, non-fungible refers to things that cannot: these are items wholly unique and one of a kind, meaning they can’t easily be matched with another item similar to them in order to make a balanced trade.
Bearing this in mind, NFTs are one-of-a-kind tradable digital items. They’re ‘tokenized’ assets, meaning that their value comes from what they represent.
Given so, NFTs don’t uniformly look or appear a certain way; they come in many different forms such as digital artwork, videos, music, and types of in-game collectibles. Within a game, when you receive an NFT (which could be any sort of in-game item), deep integration with the blockchain system means that you retain fully recorded ownership that any other player can see. You can then trade your NFT with another player to potentially earn cryptocurrency, with the process following the transactional formula outlined in the overview of blockchain at the start of this article.
Other Ways to Earn with Blockchain Gaming
While NFTs are the most common way to earn with blockchain gaming, they’re not the only way. Many blockchain titles implement methods that are more directly gameplay-oriented. Some games offer crypto rewards for winning battles and completing quests, whereas others allow players to participate in promotional events to earn or benefit from greater earning potential via special offers. In some cases, crypto will simply be given away for free as a thank-you for long-standing participation.
Types of Blockchain Games
Blockchain gaming as a concept is still relatively new, but there is a huge variety of different types of titles available on the market. Here are some of the most popular genres:
Collectible-focused
One of the earliest types of blockchain games is those that focus on collectibles as the main gameplay element. CryptoKitties was one of the first blockchain games and followed this model: in this game, the player would raise and breed digital cats for creating and trading NFTs.
Role-playing Games (RPGs)
Online role-playing games have been a staple of regular gaming communities almost since the medium’s modern inception, so it’s no wonder they’re represented in the world of blockchain, too. One of the most recent RPG titles is Whispervale TON Game, which is played via the Telegram instant messaging app. The game integrates several different ways to earn – directly via the “Tap 2 Earn” gameplay, daily puzzles, through the trading of NFTs, and more. It also features a rich fantasy world and story with a deep lore to boot.
Digital Card Games
Some of the simplest types of blockchain titles are reimaginings of age-old games people have been playing for years. Gods Unchained, for example, features a novel trading card game in which players battle for and directly with NFTs. The game combines the successes of deckbuilding with blockchain to offer something easy to learn but tough to master.
Strategy
Several games also go for the strategy loop, whereby the player simultaneously gathers and manages resources as part of a wider goal, often having to defend a base or area against a specific threat. One of the most popular at the moment is Voxies: a title that combines a Minecraft-style aesthetic with turn-based combat.
Simulations
Simulation games represent one of the most popular genres within blockchain gaming. My Neighbor Alice is a great example: taking inspiration from games like Nintendo’s Animal Crossing, the game has players buy and build a virtual island that offers a myriad of lifestyle-related tasks for earning cryptocurrency. They can also hang out and make friends with other players.
Frequently Asked Questions About Blockchain Gaming
Is There Anything I Need to Do Outside the Game Before Starting?
Yes. First and foremost, you need a digital wallet to be able to store coins and/or NFTs – check out some of the most popular ones here. You’ll also need to head to a cryptocurrency exchange platform to exchange some of your own money for coins to use in game. Check out this page for more information on this, and remember to check what coin the specific title you want to play uses.
Are the Games Themselves Complicated to Get Into?
Crypto and blockchain in general is a complex topic – the sections above have only really scratched the surface. Blockchain gaming, however, is relatively straightforward. In most cases, your experience will very closely resemble the sorts of games you already play, and most titles are heavily tutorialized and designed to be intuitive.
Is Blockchain Gaming Safe?
Given the nature of the encrypted infrastructure associated with blockchain, it would be highly unlikely to have problems with thieves, fraudsters, and scammers. The most important thing is making sure you know what you’re getting into – make sure you augment the information here with deeper research by following the links provided.
Wrapping Up
Hopefully, you now have a decent understanding of the concepts that underpin blockchain gaming. The world of crypto is evolving all the time, and if you put the time into learning how this stuff works now, you’ll grow with the technology instead of having to play catchup. Best of luck!
