Blockchain games are online multiplayer games that use blockchain technology to create an immutable record of every transaction in the game. The blockchain records each player’s actions and rewards players for completing tasks.
Many of us are already aware of blockchain technology and its usage in cryptocurrencies. But how do video games make it to blockchain technology and the hype associated with it? In the past couple of years, we have seen a rapid surge in blockchain games' popularity, but how and what does a video game have to do with blockchain technology?
Blockchain is a technology that powers cryptocurrencies like Bitcoin, Ethereum, and many others. The basic idea is that it is a ledger of transactions of cryptocurrencies or digital assets between people, from the very first owner to the current and last. This ledger of transactions is distributed across several networks of computers. So, the decentralized model safeguards the transaction information, and people can’t easily alter the record. Moreover, the record must always remain the same across all networks of computers. Check out more about blockchain technology by clicking here.
So, what are blockchain games then?
First, we need to understand how video games or traditional video games work. Typical video games employ a centralized system in which the developers have complete control. The players earn in-game rewards, currencies, and digital assets, but that is only limited to one game. Moreover, players cannot sell their rewards for real money. And everything is dependent on the developers of the game, if they decide to shut down the game servers or nerf your favorite character, you can’t do anything.
Blockchain games, on the other hand, use a decentralized model that gives full autonomy to the gamers. This means that in-game rewards and assets are the property of the gamers. Moreover, gamers can also use these assets in other games and trade or sell them to other gamers for real-world value.
Blockchain games offer players an opportunity to earn cryptocurrency while playing and winning. Every blockchain game has its own tokens or methods to earn cryptocurrency.
The Constraints and Risks
Although blockchain games have plenty of advantages, there are also risks worth noting. First off, several blockchain games have entry barriers in the form of upfront investment. You need to invest a formidable amount of money in the game before you start playing it.
Secondly, it is in a nascent stage and has vulnerability issues where hackers exploit, attack, and rob gamers and developers. The most recent example is the recent Ronin blockchain hack, which caused over $600 million in damage.
Another issue is the state regulations pertaining to gambling, money laundering, and other such laws that games do not necessarily correspond to. This is something where blockchain developers are working to come up with a solution for a win-win situation.
Market fluctuation is also a phenomenon that causes players to lose money. However, several games have put a limit on player withdrawals. This practice makes sure that the token and the game do not crash immediately.
How to Play Blockchain Games?
To play, players need to buy tokens or cryptocurrency and must have a secure wallet. This wallet secures a player’s cryptocurrency. Many such games use Ethereum technology, so players will need to get their hands on Ether first to start playing those games. The next step is to find a blockchain game that suits your taste. You need to research the blockchain game first and see what blockchain technology it uses, who the developers are, and what the upfront cost is. Lastly, understanding how blockchain games’ tokenomics work will help you choose the game.
Some of the most popular blockchain games are Axie Infinity, Alien Worlds, The Sandbox, Gods Unchained, and more. Check out our page to see a directory of blockchain games and click them to read their short reviews and overviews.
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