With the adoption of non-fungible tokens (NFTs) driving innovation and new business models, the possibilities for earning cryptocurrency through in-game activities are endless. From developers to gamers, everyone is getting in on the fun. Thus, the use of blockchain in the gaming world is only set to increase.
But it’s not just about the potential revenues – the growth of the blockchain gaming industry this 2022 has also changed how we think about online gaming. The use of cryptocurrency is becoming more mainstream, and its technology is being understood better. This means that not only can you earn some extra cash while you play, but you can also be a part of shaping the future of the gaming industry.
The growth of the blockchain gaming industry in 2022
The adoption of cryptocurrency has become more mainstream this 2022. This has led to a surge in the number of games that accept cryptocurrency as a form of payment and the development of games built entirely on blockchain technology.
Not only is using cryptocurrency in gaming convenient and secure, but it also offers players the opportunity to earn through in-game activities. Check out how the blockchain gaming industry improved this 2022 below:
Increased adoption of non-fungible tokens (NFTs) in the gaming industry
The increased adoption of NFTs in the gaming industry has resulted in many new use cases and applications, including virtual real estate, in-game assets, collectibles, art, and virtual events. Here are some examples of the latest use cases for NFTs in the gaming industry:
- Virtual real estate: NFTs are being used to represent virtual land or other virtual spaces in games and virtual worlds. Players can buy, sell, and trade these NFTs, with the value of the NFT often determined by the location or features of the virtual space.
- In-game assets: NFTs are being used to represent various in-game assets, such as weapons, armor, and other items. The rarity or usefulness of the in-game asset often determines the value of these NFTs.
- Collectibles: NFTs are being used to represent digital collectibles, such as trading cards or other virtual items. The rarity or uniqueness of the collectible often determines the value of these NFTs.
A growing number of successful blockchain games
Many blockchain games demonstrate the potential for player-generated content and community-driven experiences in the crypto gaming space. Examples of successful blockchain games in 2022 include:
- Axie Infinity: A collectible game where players can use NFTs to breed, raise, and battle Axies. It has a strong community and a 100% player-owned, real money economy.
- The Sandbox: A platform for a virtual world where players can create, share, and generate income from their own games and experiences using NFTs. The Sandbox emphasizes player-made content and creativity, making it popular for players who like to build and explore virtual experiences.
- Illuvium: A fantasy-themed RPG where players can collect, trade, and battle using NFTs. Illuvium is seen as a successful cryptocurrency game because of its strong narrative component, robust community, and valuable NFTs. Players can explore a detailed and immersive fantasy world and participate in quests and other story-based activities.
- Decentraland: A virtual reality platform where players can create, use, and monetize content and apps using NFTs. Players can buy and sell virtual land and goods like games and art. The game became a hit since it uses NFTs and VR technology innovatively, amassing a solid community of creators and players.
- Splinterlands: A collectible card game where players can collect, trade, and fight using non-fungible tokens (NFTs). Players can collect and trade various NFT cards representing different characters, creatures, and spells.
- Gods Unchained: A collectible card game where players can collect, trade, and battle using NFTs cards featuring various gods and creatures. The game successfully combines elements from traditional collectible card games with blockchain. In addition, God’s Unchained has a strong competitive scene with regular tournaments and a professional league, providing players with a way to showcase their skills and earn rewards.
Growth in the role of decentralized finance (DeFi) in the crypto gaming space
In this rapidly-evolving industry, decentralized finance (DeFi) plays a significant role in creating new in-game economies and monetization models. With DeFi, the possibilities are endless in the world of crypto gaming!
DeFi is a term for financial apps built on blockchain technology. It is used to enable smart contracts, which are automatically-run agreements that make it easy for players to buy, sell, and trade NFTs and other in-game items in a safe, transparent way.
Aside from its roles in in-game economies, DeFi also gives developers and players new ways to monetize their games. For example, players can earn cryptocurrency by participating in tournaments and other events. On the other hand, developers can use DeFi to set up crowdsourcing campaigns or sell NFTs to fund the development of their games.
Challenges faced by the crypto gaming industry in 2022
The crypto gaming industry has had to deal with several problems in the past, and it still has to deal with some problems today. Thus, the space needs to find ways to address challenges to improve user experience and drive adoption. Some of these challenges are:
Scalability issues and the impact on gaming experiences
It’s important to remember that the scalability problems that the crypto gaming industry may face in 2022 will depend on the specific cryptocurrency being used and the needs of the game app. But here are some common problems that may come up:
- Limited transaction throughput: Due to the limitations of their underlying blockchain technology, most cryptocurrencies, including those used in the crypto gaming industry, have limited transaction throughput. This can cause delays in processing transactions and make it hard for players to use the game.
- High transaction fees: As the number of cryptocurrency transactions increases, so do the fees needed to process them. This can make it too expensive for some people to play crypto games, which could slow down the spread of the technology.
- Integration’s difficulty: Adding cryptocurrency payments and other blockchain-based features to a gaming app can be a complicated process requiring specialized knowledge and resources. This can make it hard for smaller developers to get started and can slow down the spread of crypto games.
Regulatory challenges and potential solutions
The lack of clear rules about using NFTs and other blockchain-based assets is a problem for the blockchain gaming industry. In some cases, regulatory bodies have been cautious about NFTs and other crypto assets, which has caused developers and players to feel uncertain and confused.
There are several ways for developers and players to deal with these issues:
- Engage with regulators: Developers and players can work with regulatory bodies to give feedback and advice on how NFTs and other crypto assets can be used. This can help ensure that regulatory frameworks are based on what the industry needs.
- Follow best practices: To reduce the risk of regulatory problems, developers and players should follow best practices and guidelines for using NFTs and other crypto assets. For example, developers can implement measures to stop money laundering and other illegal activities. On the other hand, players can make sure they are following all laws and rules when using NFTs and other crypto assets.
- Work with industry organizations: To push for better regulatory frameworks about how NFTs and other crypto assets can be used, developers and players can also work with industry groups and other organizations. For example, developers can join industry associations and participate in industry events and projects.
Impact of market volatility on the value of NFTs
NFTs and other crypto assets can be significantly affected due to the market’s volatility. In general, the value of NFTs and other crypto assets is often linked to how well cryptocurrencies like Bitcoin and Ethereum do on the market. When the market is doing well, the value of NFTs and other crypto assets may increase, but the value may decline when the market is doing poorly.
Throughout 2022, the crypto market has been in a bear market, which means that the value of cryptocurrencies has dropped significantly. This has affected the value of NFTs and other blockchain gaming assets.
However, despite the current crypto winter, many blockchain games are still running and even thriving. Some developers have implemented in-game economies and marketplaces where players can earn and spend cryptocurrency. This can help keep the value of NFTs from changing too much as the market fluctuates. Other developers have focused on making immersive games to attract and keep players despite the market conditions.
The future of the crypto gaming industry
Innovation has been a big part of what has helped the crypto gaming space grow. The development of new business and monetization models has been another way that innovation has helped the blockchain gaming space grow.
Based on how things are going and what’s happening in the industry, NFTs will likely continue to be a big part of the gaming industry. Here are some possible predictions about how NFTs will be used and evolve in gaming:
- Continued growth: NFTs have already gained a lot of popularity in the gaming industry, and this trend is likely to continue in the future. As more game developers and players learn about the benefits of blockchain gaming, the adoption of this space is likely to grow.
- Increased integration with traditional gaming: In the coming years, it is possible that NFTs will become more integrated with traditional games. For example, traditional gaming companies might use NFTs to represent in-game assets or provide more monetization opportunities.
- Greater use of NFTs in virtual worlds and social gaming: NFTs may also be used more in virtual worlds and social games since they can represent rare and unique assets in these kinds of games.
- Continued development of NFT standards and infrastructure: As blockchain gaming grows, NFT standards and infrastructure will continue to be developed to support the space. This could mean making new standards for NFTs and improvements to the infrastructure we already have, like marketplaces and wallets.
- Virtual reality and augmented reality: NFTs can represent unique and scarce assets in VR/AR experiences, a great addition to blockchain gaming. For example, a developer could make a VR/AR experience where players can collect and trade NFTs. These NFTs could be bought and sold with cryptocurrency and used in the VR/AR experience to change how avatars look or unlock new features.
The blockchain gaming industry has seen significant growth and innovation in 2022, driven by the adoption of NFTs and the growth of DeFi in gaming. While challenges need to be addressed, the future looks bright for the industry as it continues to expand and change the traditional gaming space.
Check out this article to know more about blockchain and its uses.