There was a time when generating revenue while playing your favorite video game sounded like a dream; but then, blockchain happened, revolutionizing everything on its way and making the dream come true.
But, what are blockchain-based games and how do they differ from their traditional counterparts?
Gamers used to make some money by selling their in-game items or gaming accounts. However, blockchain technology and its unique features have shaken up the gaming industry quite significantly, creating a neat and smooth environment for gamers to monetize their gaming hours for the first time ever.
As per EthHub:
Blockchain games are any games that include blockchain technology in its backend or mechanics in general.
Blockchain systems are mainly used for storing in-game items in a decentralized manner rather than keeping them on the centralized servers owned by the game makers. As a gamer, you can keep full ownership of your items and assets compared to the traditional games where the company behind the game stays the true owner.
With blockchain-based games, you receive your in-game items or rewards in form of NFTs. Simply put, Non-Fungible Tokens or NFTs are unique, transferable digital items saved on a blockchain system. NFTs are blockchain-based, meaning you can transfer them effortlessly which allows you to easily trade your in-game items or rewards in NFT marketplaces.
These great benefits over traditional games caused NFT and blockchain-based gaming to experience exponential growth over the past year as NFTs and metaverse grew in popularity.
The thrill of a blockchain-based Metaverse and the opportunities it could provide boosted the growth even further, leading to the creation of novel concepts like GameFi and IGO.
GameFi is a blend of Decentralized Finance (DeFi) and video games which refers to the blockchain-based games and play-to-earn model as a whole. Generally speaking, GameFi offers you an environment where you can monetize your gaming hours.
As we’ve mentioned before, you’ll receive your in-game items and assets in form of NFTs which allows you to trade them in mainstream NFT marketplaces. Additionally, with some games, you’ll have a chance to receive rewards by leveling up and advancing through the game.
Decentraland (LAND), for example, is a metaverse-focused blockchain game in which you can “buy and sell LAND, Estates, Avatar wearables and names in the Decentraland Marketplace.” You can also create and build scenes or challenges and win prizes by participating in various events.
Just remember, the initial investment required depends on your selected game; in Decentraland, for instance, you’d need some MANA, the native currency of the Decentraland world to buy your first LAND.
Initial Game Offering, or IGO for short, is another way to jump on the blockchain games bandwagon. By participating in an IGO, you’ll be able to buy NFTs or tokens of a blockchain game and join their community from the very early stage.
Considering the pace at which the gaming industry is growing, blockchain games tend to increase in value and popularity shortly after their release. This can result in a high ROI for early investors who had a chance to participate in the IGO.
Nonetheless, like any other investment, there’s no guarantee that the game would end up being a success; therefore, it’s of paramount importance to do proper research before any investment and never involve more funds than you can afford to lose.