The gaming industry has seen a strong shift towards tokenization recently. This has been driven by the introduction of new titles, tokens, and development studios. There are many reasons why both developers and users would want to support more crypto in gaming. From providing more ROI opportunities to the introduction of special one-of-a-kind memorabilia, there are endless ways to integrate cryptocurrencies into gaming.
Many people are surprised to learn that the gaming industry is one of the fastest-growing tech sectors in the world. According to reports, the Video Gaming Industry was estimated to be worth around $159.3 Billion in 2020. That number equaled a 9.3% increase from the year prior. Notably, increased access to high-speed internet and the recent COVID-19 pandemic helped to drive the gaming industry’s profits to record heights.
The benefits of integrating blockchain assets into gaming can’t be ignored. For development studios, they gain the ability to take payments directly without the need for third-party processors such as VISA. This saves these firms millions in processing fees and enables gaming studios to sell their products internationally in a peer-to-peer fashion.
Developers can now relay real in-game value to users. This capability enables them to connect to their fans in more ways. Imagine you were searching through a treasure hunting game and you came across a real Bitcoin. This funding isn’t locked in the games ecosystem. It’s immediately available for gamers to trade, HODL, or sell.
Studios can also charge more for certain tokens and features when gamers know there is a resale value. Imagine you buy a custom car for the hottest racing title in the market. You would be willing to pay more if you felt as if you could easily resell the item for a greater value at a later date.
The main benefit of integrating crypto into gaming is the ability to make more immersive games. You can make games where people create or build up a digital asset over time. The time and effort they put into their asset, such as an avatar, could then be traded for other assets or sold directly for other cryptos. For role-playing games or other time-consuming titles, these assets have the potential to appreciate quickly.
These assets are known as gameplay-driven NFTs (non-fungible tokens). They are easy to recognize because their value comes from the actions of the gamer, the popularity of the game, the token’s scarcity, and its overall usability. A perfect example of a game that integrates gameplay-driven NFTs is Cryptoblades.
Cryptoblades is an RPG where players traverse a vast digital landscape in search of monsters to battle. As part of the gameplay, you forge unique weapons in the form of gameplay-driven NFTs. Improve your weapons and score more tokens per kill. Then take your fine armaments and sell them on the marketplace.
Another popular strategy is the use of game-relevant NFTs. These are tokens that hold value simply due to their value in a particular game. This category would include rare collectible weapons, vehicles, property, and more. The main difference between game relevant and in-game NFTs is that the user has no way to increase the value of game relevant NFTs.
Notably, Cryptokitties was the first title to use this style of NFT to great effect in the market. The title was so popular it created massive congestion when it launched in 2017. Cryptokitties wasn’t the first game to integrate cryptocurrencies, but it was the first to demonstrate the power of NFTs in this strategy.
Players buy kitty NFTs based on their cattributes. There are twelve categories that determine the overall scarcity of your kitty. Best of all, you can mate your Cryptokitties and get new cats that have a blend of their parent’s DNA. Notably, there are Cryptokitties worth over $100,000 currently.
Alien Worlds is a more recent example of this style of NFT in use. The game operates as a futuristic NFT metaverse where users collect otherworldly items. There are six different levels of rarity for the digital assets in Alien Worlds. Each has its own value and scarcity. Notably, Alien Worlds is one of the top-performing blockchain games in the market at this time.
Unlike Cryptokitties, you can also earn rewards by participating in the Planet DAOs (decentralized autonomous organizations). DAOs are a decentralized way to steer the direction of a project. They replace the core functionalities of a corporation with smart contracts. Users then vote to determine the best course of development moving forward.
Another style of game that has seen more use is hybrid titles. These are games that blend the real and digital world in new ways. For example, the game Upland allows you to buy, sell, and trade virtual properties mapped to real-world addresses. You can create your very own digital real estate empire.
Users can flip properties for profit, and run a virtual business to earn UPX coins. Hold your properties as their value appreciates, or trade your real estate on the market to secure an ROI now. Notably, Upland is one of the few NFT titles that enable you to directly convert your rewards into USD.
One of the most exciting developments to hit the gaming blockchain sector is the introduction of blockchain-based AAA gaming studios. Triple AAA games are the top-tier games in the market. Think of developers such as Ubisoft or EAsports. These games take years and millions of dollars to create.
Recently, the gaming studio Quantum Works became the first to secure funding via a token sale. This Binance Smart Chain gaming development studio secured its seed funding goals of $1 million in less than a week. Now the platform seeks to specialize in blockchain-based gaming on par with today’s top titles.
Best of all, the decentralized nature of the project means that much of the profits are to be redirected back into the issuance of in-game tokens and rewards. Developers have already been quotes stating the average large in-game prizes will be between $10,000 – $50,000.
It’s easy to see now why so many people want to see cryptocurrencies in the gaming sector. This combination enables users to finally get a piece of the pie. For these reasons, you may find that gaming could become a high-paying profession in the very near future.