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Cryptocurrency and Gaming: Blockchain Gaming

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Cryptocurrency and Gaming: Blockchain Gaming

Over the past two years, blockchain games have emerged as one of the most dynamically developing spheres in Web3. The explosive growth of blockchain games in 2021 propelled them to the forefront of Web3, attracting crypto investors’ interest and drawing attention to projects like Axie Infinity and The Sandbox. The key to the success of these projects has been the ability for players to earn cryptocurrency while gaming and utilize other decentralized financial functions such as staking and farming. As a result, the term GameFi was coined.

The concept of GameFi has become widely adopted in the world of blockchain gaming, as many participants have started paying more attention to the financial aspects rather than the gameplay itself. The term “play-to-earn” has also become synonymous with blockchain gaming, as many see it as the only viable solution. However, play-to-earn is just one monetization model, and blockchain games can offer much more than just earning opportunities and pyramid-like mechanics.

Let’s delve into what blockchain gaming entails, what advantages it can offer players, and how it differs from the concept of GameFi.

Introduction

Cryptocurrency and gaming have become inseparable in recent years thanks to the revolutionary development of blockchain technology. Blockchain gaming opens the doors to a world where players not only enjoy entertainment but also have the opportunity to earn real money.

One of the key features of blockchain games is the use of cryptocurrency as in-game currency, which opens up new forms of economic relationships in the gaming space. This allows players to trade, buy, and sell in-game assets on decentralized markets, creating additional earning opportunities.

What Are Blockchain Games?

Blockchain games are an innovative merging of the gaming world with blockchain technology. They utilize various elements of this technology to create a unique and engaging gaming experience. This can include hosting games on blockchain platforms, using NFT technology to create unique in-game assets, and cryptocurrency as in-game currency, among other things.

Blockchain games can encompass a wide range of genres, including card games, role-playing games, simulators, and more. They retain the same fundamental elements as Web2 games but offer additional advantages of blockchain technology, such as enhanced data security and the ability to own in-game assets.

As technology advances, it is expected that blockchain games will begin to compete with classic games such as Call of Duty or GTA in terms of gameplay. Nothing prevents developers from creating similar games on the blockchain.

Thus, blockchain gaming represents an exciting convergence of games and cryptocurrency, opening up new possibilities for innovation, entertainment, and earning in the virtual world.

Benefits of Play-and-Earn

Funding blockchain games has been a key catalyst for their sudden surge in popularity. Projects like Axie Infinity offer players the opportunity to earn passive income by implementing the “play-to-earn” model. The Play-to-Earn (P2E) mechanic allows users to earn cryptocurrency, often represented by in-game tokens or NFTs, by completing various tasks, winning battles, or simply spending time in the game.

However, this concept is not without its drawbacks. Sustaining it requires a constant influx of new users at a high rate, which can be challenging. This may lead to an increase in token sales compared to purchases, as users seek to cash out their earnings. Additionally, the increasing emphasis on token earnings may lead to inflation of the in-game currency, undermining its value as the number of players grows. In light of this, game developers are striving to find new methods of in-game economy and player incentivization.

With more sustainable approaches, players can receive rewards integrated into any blockchain game, allowing developers to focus on improving the gameplay experience.

Reward Mechanisms

Tournaments – In blockchain games, players can participate in competitions and earn rewards for outstanding achievements or reaching specific levels of mastery. These tournaments are held less frequently and require more effort than regular gameplay in P2E games. This creates a lower supply of such rewards, thereby increasing their value.

Asset Trading – Owning in-game assets enables players to generate income from their subsequent sale. For example, players can sell skill-based upgrades to other players who may not have the opportunity to earn them due to time constraints or lack of experience.

Real Estate Investments – Blockchain games offer players the opportunity to acquire land or real estate within the game, which can increase in value as the game’s popularity grows. Owners can sell or lease this property for financial gain.

NFTs – In-game assets such as characters, weapons, skins, and other digital collectibles can be represented as NFTs.

The key shift to creating a successful and sustainable blockchain game is to reward players based on their skills rather than just the time spent in the game. Rewards should be unique, desirable, limited, and exclusive, increasing their value. This can be achieved by providing a high-quality game experience that attracts the most talented and ambitious players.

How to Get Started Playing

Currently, there is a wide range of games offering the opportunity to immerse yourself in the world of blockchain gaming. Some are available to play for free, while others require specific NFTs or tokens to access the content.

To enter the game, most players need to connect their Web3 wallets, such as MetaMask. This serves as the entry point to the game and a place to store rewards and in-game assets for later use or sale on trading platforms.

For example, you can play Cryptofarmers, which is quite simple and easy. Cryptofarmers is not just a game but a whole adventure in Web3 format, recently launched in alpha version, where you, as a player, grow your digital “green assets” or, to put it more simply, various vegetables such as tomatoes, cucumbers, potatoes, and cabbage, to earn real cryptocurrency.

Each vegetable in the game is a separate token traded on the exchange paired with the test token FARM, as the game is currently in alpha version. After exiting alpha, the token will also cease to be a test one, and there will be already “combat” FARM tokens in the game.

Conclusion

The development of blockchain games and the integration of cryptocurrency into the gaming space represent an exciting stage in the evolution of the entertainment industry. It not only expands earning and interaction opportunities for players but also raises the bar for quality and transparency in the industry as a whole.

Thanks to blockchain technology, the gaming world becomes more decentralized, fair, and attractive to participants. At the same time, blockchain gaming serves as a bridge connecting the world of virtual entertainment and the realm of digital finance, promising an exciting future full of opportunities and innovative ideas.

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