Last updated on July 5, 2022
The gaming industry has seen a strong shift towards tokenization over the last couple of years. This conversion has been driven by the introduction of new titles, tokens, and development studios into the market. There are now more reasons why developers and users support cryptocurrency integration in gaming than ever. From providing more ROI opportunities to the introduction of special one-of-a-kind memorabilia, there are endless ways to integrate cryptocurrencies into gaming.
2022 GameFi and Play to Earn is Hot
The play-to-earn sector is on fire ever since the introduction of cryptocurrencies to the market. These systems have grown from easy to play collectibles games to advanced immersive metaverses. These futuristic protocols enable you to create your mini metaverse to secure returns and more.
All of these opportunities were not possible only a few years prior. What changes to make the GameFi revolution kick into overdrive and how will it affect you? Here is some insight into the many reasons why crypto and gaming are a match made in heaven.
The Gaming Industry is Ready
Many people are surprised to learn that the gaming industry is one of the fastest-growing tech sectors in the world. People from all over the globe play video games and the industry has seen steady growth alongside the proliferation of high-speed internet.
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. In 2021, the profits grew to $178.2 billion. These returns are predicted to be again dwarfed in 2022, which analysts predict to hit $196 billion.
Notably, increased access to high-speed internet and the COVID-19 pandemic helped to drive the gaming industry’s profits to record heights. It turns out that when you lock a bunch of people up in their homes for months, they are going to need to think of ways to stay entertained. Video games are the perfect fit.
They are low-cost to maintain and play after an initial startup and they can provide near endless entertainment, especially when coupled with high-speed internet services. Today’s gaming networks can include massive online communities and digital landscapes that include players from all over the globe.
Hardcore Gamers Making a Living
Those who have spent countless hours playing their favorite gaming titles can attest to the fact that it can be a time-consuming and often unprofitable experience. However, the introduction of play to earn gaming changes everything. Now, gamers can secure real digital assets that they can trade with others to profit.
Both Sides Win
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. Third-party processors like VISA and PayPal are notorious for their high fees and transaction delays.
These systems operate as gatekeepers and can create disruptions between gamers and their platforms when processing issues arise. Additionally, they add to the overall cost of gaming as they have sharp fees that they include on every transaction. Eliminating third-party processors benefits all parties in the gaming ecosystem.
In-Game Value
Developers can now relay real in-game value to users. This capability enables them to connect to their fans in more ways. They can provide detailed data and real ownership over digital assets. Long gone are the days of players having to blindly trust developers when discussing the scarcity of in-game assets. Now, anyone with a blockchain explorer can see the true scarcity and ownership of digital assets.
For example, 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. This approach is a game-changer for many gamers who want to make a living doing what they love. There are already titles that pit players against each other in battle with the winner taking home some sweet satoshis for their efforts.
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 on 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. This strategy makes it a better option to secure these assets for arbitrage trading opportunities as the title increases in popularity.
More Immersive Titles
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 game play-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 game play-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 game play-driven NFTs. Improve your weapons and score more tokens per kill. Then take your fine armaments and sell them on the marketplace.
Another popular in-game NFT title is Decentraland. This metaverse enables users to travel through a virtual landscape. There are digital plots of land you can purchase and build items on. You can create games, museums, homes, and more. The land operates as an NFT that you can sell or trade on any supporting DEX.
Decentraland has proven to be a phenomenon in the market. Already the platform has gained support from major labels, brands, some governments, and even the rapper Snoop Dog owns a virtual mansion in the game. However, it will cost you if you want to have the Dog Father as your neighbor, as some Decentraland property costs millions.
Game Relevant Tokens
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 includes 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.
The Game that Changed Everything
Players buy kitty NFTs based on their cattributes. Twelve categories 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 a unique 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. DAOs are a smart way for DeFi communities to grow coherently.
Hybrid Games
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.
You could see all types of hybrid titles enter the market throughout 2022. Imagine a title that enables you to search for and discover real NFTs as you venture through the city. Think PokemonGo with cryptocurrency. The possibilities are endless and so are the earning opportunities.
Blockchain Gaming Studio
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. AAA studios are the cream of the crop in terms of gaming quality.
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 quoted stating the average large in-game prizes will range from $10,000 – $50,000.
What the Future Holds
This announcement means that gamers should prepare for titles that are more immersive and interactive. You could also see more AR (augmented reality) and VR (virtual reality) titles coming to the market. Both of these technologies are popular in the metaverse and are sure to see growing adoption in the coming months.
Imagine venturing into your mall and seeing a plethora of offers pop up in your smart glasses display. As you shop, you acquire more collectible NFTs for your purchases that you can then use to create a special NFT that can be traded on any DEX. You could also choose to stake, farm, or even lend out these assets to secure passive returns. While this scenario may seem futuristic, all of these technologies are here today and may be in use in your local area in months.
Blockchain Gaming – Win Crypto and Have Fun
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. The gaming industry has gorged itself on the billions in profits earned from gamers’ efforts. Now, it’s time for the gaming community to benefit some.
Gamers are eager to see real returns on their actions and gaming studios are excited to oblige by providing more valuable digital assets in games. Together, these factors are driving play to earn and blockchain integration to new heights. You can expect this market to continue to grow at an expediential rate as the opportunities are too good to pass up. For these reasons, you may find that gaming could become a high-paying profession very soon.