How blockchain integration is stirring up the gaming ecosystem

Gone are the days when parents used to stop children from playing computer games, stating it is a waste of time and money. Thanks to blockchain integration in the gaming ecosystem, the traditional one-way money flow has evolved into a two-way street.

So, what is blockchain gaming?

The gaming industry thrives on three subsets: Smartphones, Personal Computers/Laptops and Consoles. Every year 1.5 billion smartphones are sold. Similarly, in 2021, 277 million laptops and 160 million tablets were shipped globally. And according to market research reports, between 2021 and 2025, the global video game market is forecasted to grow from $178 billion to $268.8 billion. The stats mentioned above clearly suggest that the gaming market subsets earn billions of profits every year. However, traditional games only benefit game developers and publishers, while gamers are left with little to no value.

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Unlike traditional games, blockchain games provide real ownership of in-game assets (skins or in-game coins/points). These assets can be traded for cryptocurrencies which can eventually be converted into fiat money aka government-issued currency.

Traditional games vs blockchain games

While playing traditional games, players spend more money to access exclusive features like new combat armour or upgraded weapons. These coveted assets have no value outside the particular game. In the centralised setting, players often struggle to trade gaming gears or in-app purchases and have almost negligible earnings. In contrast, blockchain, Non-fungible tokens (NFT) or crypto-enabled games help players earn while having fun. These blockchain/crypto/NFT games function in a decentralised manner.

For instance, in blockchain games, when a player upgrades his weapon through an in-app purchase, the weapon can be tokenised and converted into a transferable asset. So once the player has moved on to another gear/weapon/armour, they can exchange it or sell it to upgrade themselves. To be precise, the centralised gaming ecosystem used to benefit only game developers and publishers, while blockchain-backed decentralised games enable gamers also to earn.

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Leisure, fun and value

Blockchain games today are working on a play-to-earn model. In comparison, earlier gamers used to invest money and time to play a game without the possibility of earning some monetary value in return. But, since the introduction of blockchain games, gaming has become more than just a leisure activity.

Gamers worldwide are now effectively monetising their time, skill and energy by earning in-app awards like weapons, avatars, armours and coins. The best part is that these gamers get complete ownership of their asset, which can be exchanged later to convert into fiat money. Many national and international players are already using their gaming skills to earn a stable income.

In 2022, many play-to-earn blockchain games have piqued the interest of gamers. Games like Silks, Cryptopop, Cryptokitties and Axie Infinity are taking the blockchain gaming ecosystem this year by storm. However, these games are just a tiny section of a vast ocean of opportunities. The blockchain games market is inventing new games every day and presenting highly-lucrative opportunities for all stakeholders.

What the future has in store?

According to market experts, in the last decade, from a zero-value size, the blockchain gaming industry has blossomed into a $3 billion market in 2021. The industry is forecasted to touch at least $39.7 billion by 2025. Driven by Non-fungible tokens and play-to-earn gaming models with almost negligible primary cost, the blockchain gaming industry has already attracted more than 1.5 million gamers worldwide.

Moreover, many leading players like Animoca Brands and Sky Mavis are giving their validation for blockchain technology to be the future of the gaming industry.

The scope for blockchain gaming to thrive is immense. Especially, when combined with play-to-earn attributes, it is likely to grow as a niche segment on its own merits while also converting traditional gamers into blockchain gamers.

(Vinayak Yannam is Co-founder and CBO, Sportzchain, India’s first blockchain-based fan engagement platform)