Without any surprise, there will be a lot of supporting products around GameFi in the near future, leading to its mass adoption. This will take gaming to a whole new level, bringing creative ways to earn.
Undoubtedly, cryptocurrency has been the best product of blockchain, so far. Cryptocurrency is the game changer and has disrupted every industry in the market, gaining a huge user base in a very short span of time. Cryptocurrencies have proven their efficiency over their centralized counterparts, i.e. fiat currencies. This made a lot of investors and market makers switch from the traditional forms of finance to systems fueled by crypto assets and blockchain. While every industry including but not limited to health care, finance, investments, and e-commerce begin to adapt to the crypto trends, game developers also started deploying their games on top of the blockchains to take the fruits of decentralization to the users.
Crypto gaming — An overview
With the advent of smartphones and easily accessible internet facilities, there has been a dramatic increase in the adoption of web-based games. Crypto being the hottest trend, crypto games are disrupting the conventional mobile and PC games. The unique proposition between the mass adoption of crypto games is that the users can earn real crypto assets as rewards while they play in exchange for their effort and time. Worldwide Asset Exchange published a stat that over 75% of online gamers love exchanging their virtual assets for currencies that can be used across various platforms. Crypto gaming does the same, allowing gamers to collect, store and exchange virtual gaming assets that are tradeable on the blockchain through various NFT marketplaces. Crypto games allow gamers to earn while they enjoy unlimited gaming built by the leading game developers.
Blockchain and gaming
In simple terms, blockchain acts as a database that stores the gaming data, with an added advantage of decentralization and enhanced security. Conventional online games tradition client-server architecture that stores data in a centralized fashion, i.e. data is stored in a single location. This isn’t a better way of storing data as it acts as a hotspot for potential hackers. Blockchain, on the other hand, stores data on a network of computers. Gaming data is widely distributed across every node in the network, making it impossible to tamper with. If data stored on the blockchain has to be altered, the copy of it in every node should be changed, ensuring there is no central control over the information.
How does crypto gaming work?
The major difference between a conventional game and a crypto game from a gamer’s point of view is that gaming assets like skin, armor, and suits are interoperable in the latter. The skin you use in a crypto game can be used in various games that support the assets on the blockchain. The user can enjoy transferring crypto assets and rewards earned in one game to another.
The assets in traditional gaming and development are owned by the developers, while on crypto-based gaming, the users can enjoy complete control over their assets. The proof of ownership of these gaming assets is stored on the blockchain that remains unaltered, giving equal power and control to the creators and gamers. Crypto gaming, in short, is the genuine way of how a game should be!
Crypto games fall into two categories, either the entire game is deployed on top of the distributed ledger or the game uses blockchain only for the in-game currency. In the former case, every gaming interaction is brought on-chain, whereas the other set of games use NFT or digital collectibles as in-game assets.
Crypto gaming — A glimpse of the future
The increase in adoption of DeFiand crypto gaming is leading to another dimension of gaming called GameFi. This combines a variety of DeFi protocols like staking and liquidity mining to blend them with the NFT gaming assets. Without any surprise, there will be a lot of supporting products around GameFi in the near future, leading to its mass adoption. This will take gaming to a whole new level, bringing creative ways to earn. For instance, the gamers can use their on-chain gaming assets as collateral for loans and can borrow gaming assets on certain yield conditions through smart contracts.