The growth rate for E-sports is enormous, and the utilization of blockchain technology has resulted in innovations. Blockchain gaming is revolutionizing how gamers interact with games. Additionally, DAOs are developing new models for collaboration and economic engagement.
In-game assets have been a part of video games for a while. From items such as coins and power-ups to unique skins and weapons, gamers have always sought to improve their game experience. Now gamers use their assets to get ahead in their games and also use them to gain real-world value.
Blockchain provides a more secure, transparent, and personalized gaming experience along with the value-addition of owning in-game assets. With blockchain games, all of the game’s logic and assets are stored on the decentralized ledger. This is so gamers can be sure that the game is fair with no fraud tactics to take away their assets.
Blockchain gaming refers to the use of cryptocurrency and blockchain technologies in games. CryptoKitties, an online game that utilizes cryptocurrency to buy, breed, and trade virtual cats, is one of the first applications of blockchain technology in the gaming business.
Digital Ownership in the Gaming Economy
Traditional centralized gaming has been plagued with fraud and untrustworthy gaming tactics for a long time. On the other hand, blockchain-powered gaming eliminates these barriers and opens up new marketplaces for gamers. They freely trade and gain real value from their efforts and talents without depending on intermediaries.
In a blockchain game, players own the in-game items. They are given proof of ownership through non-fungible tokens (NFTs). An NFT could be an in-game item, a rare skin, artwork, or anything else electronic. You can’t replace it with something else. In decentralized gaming, two core principles mark the gaming space:
- Currencies: In-game currencies are a method of generating money in video games. Players devote time playing a game and accumulating currency through it, which they then sell for cash. For example, there is Ether for Cryptokitties, MANA in decentraland, World of Witchcraft’s Gold, and Fortnite’s V-Bucks.
- Items: Players own items, as well as the games themselves. In-game items are the player’s current weapons, armor, skins, collectible monsters, and trading cards. These items are tradable in decentralized finance.
Tokenizing In-game Assets
The ability to tokenize in-game items enables gamers, game developers, and game owners to capitalize on their time and expertise. There are several parallels between video game tokens and traditional card games.
The growth and adoption of NFTs for gamers represent one of the first times they can truly own and trade their hard-earned in-game items through a decentralized network. This is different from games on centralized servers. The provider has more control, and they involve unscrupulous third parties.
Virtual assets on the blockchain have unique characteristics. They may be utilized in multiple games and cannot be duplicated. As a result, gamers may trade these assets with one another, establishing a new economy within gaming. NFTs facilitate digital ownership; here are blockchain games that use NFTs:
The first blockchain-based game was CryptoKitties. Others include
- Neon District
- Cards of Legends
- Gods Unchained
- Axie Infinity
Gaming in Metaverse
The Metaverse is a term used to describe a digital world where people and objects interact. Neal Stephenson first used the phrase in his 1992 book Snow Crash. The Metaverse, according to the novel, is a three-dimensional virtual reality universe that enables individuals to connect and items.
In recent years, blockchain gaming has emerged as a means to bring the Metaverse to life. The Metaverse enables users to develop and trade digital assets as a blockchain-based virtual reality platform. One of its most significant innovations has been in the field of gaming.
Metaverse brings blockchain gaming to the mainstream, potentially revolutionizing the gaming industry. Metaverse has a realistic chance of dominating the online gaming market because it utilizes blockchain technology to develop new and different gaming experiences.
The Rise of Decentralized Autonomous Guilds
DAGs, or decentralized autonomous guilds, are a new type of economic cooperation. They provide improved economic efficiency, reduced barriers to entry and exit, and wider equality by eliminating corporate hierarchies. Additionally, DAGs are transparent, scalable, secure, and efficient.`
A DAO, or Decentralized Autonomous Organization, is a type of organization that is governed by regulations stored in a blockchain. This allows for a far more decentralized sort of organization, and gamers may utilize it in various ways. It’s an essential component of game-based blockchain technology.
DAOs in video games are usually set up in a virtual space with a defined set of regulations, and huge value is frequently traded. DAO aims to popularize blockchain gaming by presenting the Play2Earn features of numerous games in the form of “quests.”
Quests are developed in collaboration with gaming companies and provide gamers with cryptocurrency and NFT rewards for completing them. The MetaClan is a group of crypto gamers, technicians, and developers committed to creating amazing experiences via a cutting-edge video game club.
Metaclan is a game-centric Clan Founded by NFT gamers. It has a cryptocurrency and NFT bank called the War Chest. Here clan members can acquire high-quality NFT game items, participate in “raids” across games, and return to the guild awards.
Metaclan is a decentralized funding protocol developed on the Ethereum blockchain using open-source software from Moloch. It develops DAO financing protocols. A “summoner” refers to the person who creates a Moloch-based DAO.
The gaming business is no stranger to change. However, the transition from centralized servers and game ownership to blockchain-based decentralized systems may prove to be one of the most significant changes yet. It’s no longer just about in-game assets; this new technology has created entirely new economic models for games that use tokens such as NFTs.
This means gamers can now possess non-game-related objects outside of a game world. This opens up a whole new realm of possibilities for monetization through methods like tokenizing video game assets or creating DAOs. However, the process is not without its challenges.