How Crypto Is Transforming the Gaming Industry 2024

Traditional games are self-contained. You complete the challenges, earn points and that's it. There's nothing more to gain. Developers noticed that this cuts down the lifespan of their games. And so, video game industries introduced a new kind of transaction method which is crypto payment.

It's not hard to understand that players would be much more interested in a game if it lets them have ownership of the trinkets and knick-knacks they have earned throughout the gameplay. This is how NFTs and crypto gradually found their way to games. 

In this blog, we will get into the nitty-gritty of how we are witnessing the transformation of the gaming industry in 2024 with the help of crypto.

What Are Crypto Games and How Do They Work?

The gaming industry has seen so many advancements in recent years and crypto games might just be another new height. In 2024, it is safe to assume that we have all heard of blockchain technology somewhere or the other. Even if we aren't familiar with the exact word, we have a decent understanding of the concept.

The technology consists of a chain of blocks, where each block contains a record of multiple transactions. These blocks are linked together using cryptographic hashes, which create a secure digital chain. It is known for its ability to create a permanent, immutable, and transparent record of data and transactions, making it possible to exchange anything of value, whether physical or digital.

So why was there an entire paragraph about blockchain technology—you may wonder. It's because we cannot talk about crypto games without it. Crypto games use this system to record a player’s progression in a game. It then rewards the player for winning or passing multiple levels.

These games often employ smart contracts, NFTs, governance tokens, and play-to-earn systems. Crypto games let players have true ownership of in-game assets, which are perfectly stored on the blockchain. This ensures transparency and security.

Players can use crypto wallets as universal player identities. Crypto wallets work as a single entry pass to access any game built on blockchain platforms. This way, you don't need separate accounts for different gaming ecosystems. It also simplifies the gaming experience for crypto gamers.

Crypto is also influencing esports by allowing people to wager on different teams. Cryptobetting.com has a list of influential esports betting sites. 

P2E System

P2E is short for Play to Earn. This feature pays you for playing games on blockchain websites. These games command you to achieve milestones, complete tasks, and go on side quests. After the player's progression is recorded, they get paid through NFTs or other crypto tokens.

Play to earn games started with cryptocurrencies, where DeFi (Decentralised Finance) moderated protocols gave out rewards to participants. Then, it moved into video games, making it a new genre of game where players can have a good time and earn money simultaneously.

If we were to compare P2E games with traditional P2P (Pay to Play) games, the first thing that comes to mind would be the reward system. Regular games require players to purchase not just the game itself, but also a subscription or membership to online services (Xbox Live Gold, PlayStation Plus, Amazon Luna, etc.). And of course, a console. These games often have higher production values (i.e. better graphics and sounds) than those of free-to-play games. However, players cannot sell or trade in-game items outside the game world, and their investments are usually stuck within the game.

On the other hand, because in-game items and NFTs have tangible value,  P2E games offer a more meaningful economy, unlike traditional games Players can also use rewards and in-game assets across different crypto gaming projects. That way, they can funnel a strong community among players who may share strategies for earning rewards or trading cryptocurrency with each other.

Gaming Assets and NFTs

To participate in crypto games, players need to have a Coinbase wallet. This wallet allows them to purchase and store cryptocurrencies.

Blockchain games are attracting so many people nowadays and experts think it is because these games allow gamers to have real ownership. In layman's terms, the points, or skins (could be any other rare item) you have scored in the games will become your actual property.

Usually, blockchain gaming adds these components through specific tokens (mostly NFTs). NFTs are unique collectables that reside in the chain. ERC721 is the usual standard for these tokens and they allow any type of digital file to be minted. This means that if your avatar gains a hat, let's say, the hat is now your asset. You can keep it, or sell it.

High-Quality AAA Games

These games are called “blockbusters” because of their reputation. The term “AAA quality”, although a little commoditized, refers to high-budget, high-profile games that are produced by highbrow publishers. 

AAA NFT games are built on blockchain platforms like Solana or Ethereum. Here's a list of a few AAA NFT games:

• My Neighbor Alice

• Landrocker

• Mirandus

• Gunzila

• Night of the Living Dead

• Blocklords

• Citizen Conflict

• Star Atlas

• Illuvium

• Shrapnel

Metaverse Ambitions

We have all heard about the term “metaverse” in sci-fi books or movies. Well, good news, it's coming to reality. And it is probably going to be the next big thing the “digital age” has to offer. The metaverse is an extension of the internet, a superset of virtual reality. Popular games like Roblox, Fortnite, and Animal Crossing have already integrated these technologies.

Developers don't yet know how the metaverse will exactly look like. But they definitely seem to have an idea. It will look something like the universe in “Ready Player One”. Basically, it will amalgamate the physical and virtual worlds. Through this process, a fully functioning economy will exist. Users will be able to travel wherever they want, any corner of the metaverse, while keeping their purchased items and avatars intact. We are expecting it to be a virtual theme park with endless limits.

Even if it does not meet our expectations, we can be sure about the fact that it will change how we engage with the digital world on a fundamental level. This growth will significantly increase opportunities for creators, artists, and gamers. Just like NFTs, it will reshape and bring about a whole new economy.

Regulation Issues

With such advancements, crypto gaming will inevitably bring in massive amounts of new players. Although a positive thing for devs and publishers, this will also increase traffic spikes. Meaning the games will need much more maintenance than ever before.

Not to be a killjoy but crypto gaming does have some drawbacks. The biggest one right now is that blockchain technology is a little hard to wrap your head around. Anyway, overcoming this obstacle should be easy with education and continuous learning.  Moreover, publishers should prioritize transparency. Other than that, we don't have much to worry about.