Blockchain games are a new genre of video games that use blockchain technology to create unique gaming experiences.
Blockchain technology allows for a more secure and transparent gaming experience, as well as the ability to create new in-game economies. Crypto games are still in their early stages of development, but there are already a number of exciting games to check out.
Basic terminology
To truly grasp how blockchain games work, we must first understand the technology behind them – blockchain. We also need to comprehend the main concepts related to blockchains, such as digital assets (NFTs), decentralized cryptocurrency games, and the play-to-earn gaming model.
What is blockchain?
Simply put, a blockchain is a distributed database that allows for secure, transparent, and tamper-proof record-keeping. It’s essentially a digital ledger of all of the transactions that have ever taken place on the network which are incorruptibly recorded on thousands of computers around the world.
» Learn more: Blockchain Technology Explained
What is an NFT?
Non-fungible tokens (NFTs) are digital assets that are blockchain-based and unique. Unlike Bitcoin or other cryptocurrencies which are all interchangeable, NFTs are each unique and cannot be replicated.
This uniqueness makes them perfect for representing in-game assets, such as characters, items, and land. NFTs can also be used to create collectibles and limited-edition items.
» Learn more: What is an NFT?
What is a cryptocurrency game?
A cryptocurrency game is a video game that uses blockchain technology and allows players to earn cryptocurrency. These games usually have an in-game economy based on blockchain-based digital assets such as NFTs.
What is the P2E gaming model?
The play-to-earn (P2E) gaming model is a new way of monetizing video games in which players can earn real-world value from playing the game. This is different from the traditional pay-to-play model in which players must pay to access the content.
In a play-to-earn game, players can earn digital assets that have real-world value. These assets can be used to trade or be sold for cash. This allows players to generate income from playing the game rather than paying for it.
» Learn more: What is a P2E game?
How do blockchain games work?
Now that we’ve explained some of the basic terminology and concepts, let’s take a look at how blockchain games work.
As we previously mentioned, blockchain games use blockchain technology to create unique gaming experiences. This includes the ability to own and trade in-game items and currencies, as well as the ability to create new in-game economies.
Blockchain gaming can be divided into two categories: NFT games and crypto games.
- NFT games are blockchain-based games that use NFTs to represent in-game assets. These assets can be traded or sold, and are stored on the blockchain.
- Crypto games are blockchain-based games that use cryptocurrency to fuel their in-game economies. These games usually have an in-game mechanism where players can earn crypto tokens.
Blockchain games are still in their early stages of development. However, there are already a number of exciting games to check out. Some popular blockchain games include CryptoKitties and Gods Unchained.
Let’s explain how blockchain games work with an example.
One of the popular blockchain games is Cryptokitties. In this game, players can purchase, breed, sell and trade digital cats, with each cat being an NFT. It’s basically a Tamagotchi-style game, except the digital NFT pets are stored on the blockchain. This means that players are the sole owners of their cats and have complete control over them.
» Learn more: A guide to NFT games
How to play a blockchain game
Playing blockchain games isn’t really different from playing any other game. On the contrary, they are usually much simpler than games you’d play on PC or consoles.
Even though most of them are free of charge, you’ll still want to have some crypto in your wallet to purchase your first in-game NFT.
Depending on the game you choose you will need to take the following steps to be prepared:
- Set up a cryptocurrency wallet.
- Buy some cryptocurrency.
- Exchange your cryptocurrency for in-game items or currency.
- Go to the game’s official website, connect your wallet, and start playing!
For instance, when playing CryptoKitties, you need to connect your Ethereum wallet to purchase your first digital cats and begin breeding them. Watch this video for more info.
Earning money when playing blockchain games
Most crypto games belong to the play-to-earn (P2E) category, meaning that many players can profit by playing the game.
In CryptoKitties, for example, you need to breed your kitty and make sure that it grows into a beautiful cat that you can sell for a solid profit. Trading also plays an important part in this game because players are trying to find the right cats to breed and create a unique kitty.
There are also some more active ways to earn a profit. For example, the Axie Infinity game allows you to engage in a PvP Pokemon-like battle where you can be rewarded for winning against other players. You’ll receive the so-called Smooth Love Potions (SLPs) and can then convert them into ETH.
Benefits of blockchain games
There are many benefits to playing blockchain games:
- First and foremost, you own your game data and NFTs. They are stored on the blockchain and no one can take them away from you or copy them.
- Another big advantage is that blockchain games usually have very low fees. Since there are no intermediaries involved, the transaction costs are much lower than in traditional games.
- And finally, blockchain games are generally more transparent than traditional games. Game data and rules are stored on the blockchain and anyone can access them. This makes it much harder for developers to change the game rules or to manipulate the game data in their favor.
By playing blockchain games, you can:
- Own your in-game items and currencies.
- Trade them in a secure and transparent way.
- Earn real-world value from playing the game.
- Generate income from playing the game.
- Breed and trade digital assets.
- Engage in PvP battles.
Downsides of blockchain games
Blockchain games are not without their drawbacks.
- First of all, blockchain games are still in their early stages and there is a lack of good quality games. Most blockchain games are very basic and lack the depth and complexity that you’d find in traditional games.
- Another big problem is that blockchain games are often very slow. Since blockchain transactions need to be verified by the network, it can take a long time for them to be processed.
- And finally, blockchain games often have very high transaction fees. Since blockchain transactions need to be verified by the network, they often come with significant transaction fees.
How to choose a blockchain game
With the vast majority of blockchain games being very basic, it can be hard to find a good blockchain game to play.
When choosing a blockchain game, you should look for a few key features:
- Good quality – The game should be well-designed and offer a good gaming experience.
- Low transaction fees – The game should have low transaction fees so that you don’t have to spend a lot of money on gas.
- Fast transactions – The game should have fast transactions so that you don’t have to wait a long time for them to be processed.
- Good community – The game should have a strong community so that you can find people to play with and to help you out if you run into any problems.
Conclusion
Blockchain games are a new and exciting way to play games and earn money. While they are still in their early stages, they have a lot of potential and could become a major force in the gaming and gambling industry in the years to come. If you’re looking for a new and exciting way to play games, be sure to check out some blockchain games.