Crypto games are video games that run on a cryptocurrency network. Based on the Blockchain, they offer players verifiable ownership of the virtual goods contained in games.
With the advancement of PC and mobile gaming, there has been a noticeable increase in the gaming industry’s interest in cryptocurrencies. Crypto games are now flooding the traditional gaming market. Thanks to them, players can earn money by playing, thus rewarding their time and effort.
In a report published by the Exchange of assets around the world, it has been stated that over 75% of online gamers want to trade their virtual assets for a currency that will be used across multiple platforms. Cryptocurrency games have become popular largely due to its ability to collect and trade virtual assets. It has also proven to be a safe and easy way for the gambling industry to make money. This article teaches you more about the myths and facts about Blockchain games.
Myth: Games with an open economy are bad
At its core, a Blockchain game has an “open economy”. Blockchains are replicated ledgers that support open economies around games. They do this by providing transparent, demonstrable and consensus-based mechanisms. Therefore, they allow games to trade virtual goods through decentralized markets and exchanges.
games like “Magic: The Gathering (MtG)” And “Pokemon” they were specifically designed around a real-world open economy where players ended up trading individual cards. But some people have commented that they don’t like the open economy of these types of games. It is perfectly reasonable to discuss the merits of any game design.
There are many Collectible Card Games (CCGs) besides MtG that no one plays anymore. And it’s usually because of them they could not maintain their ecosystems in the long term. But the potential for having projects that some people don’t like isn’t what makes an open economy a “bad” economy.
Reality: Crowdfunded games can be successfully supported
It is true that at the moment there are many charlatans to cheat those who do honest and hard work. It reminds us of some of the first crowdfunding games, which disappeared once we got the money. The difference with crypto projects is that they tend to allow more anonymity as well as the attraction of liquidity. And this exacerbated the problem.
Ultimately, crowdfunding for games has become much less popular because many games have been unsuccessfully supported. Game development projects are failing at an alarming rate because delivering a game is so hard to do.
Selling NFTs or tokens to support a game is essentially a form of crowdfunding on the Blockchain. Therefore, it adds to the risk dealing with a criminal without the intention of building anything.
But if there’s one thing we’ve learned in crypto, it’s that you need to be diligent. Good game development teams aren’t afraid to put their reputation at risk, it’s entirely possible pseudonymous teams worth supporting. In general, they have acquired a reputation over a longer period of time as creators.
Myth: Blockchain games, a real ecological impact
People don’t really understand the differences between games and digital art markets. In fact, there are two main types of blockchain algorithms: proof of work (PoW) and the Proof of Stake (PoS). PoW has to solve huge cryptographic puzzles to reach consensus, and that’s what Bitcoin and the Ethereum mainnet use. It takes a lot of energy to carry out these operations.
Blockchain games are not based on Bitcoin or the main Ethereum network. The games are built Proof of Stake Blockchain like Solara. Proof of stake it doesn’t require much more power than any other cloud-based service. Games rely on these blockchains for pragmatic reasons, including lower power consumption, as well as the high throughput and faster purpose of microtransactions.
Fact: Early projects often have a downside
Game development is a profession. It depends on constant learning and iteration. Almost nothing looks good in the first phase of a new market, a new business model or a new genre. Even games that are hugely popular today looked really bad in some of their early prototypes.
Right now we still see a lot of bad games for PC and mobile devices. But everyone has to learn. Here is how we will see improvement over time. Also, right now, there are Blockchain games in development with AAA production value (which have reached the top 10 in market sales).
Myth: You don’t really own anything with an NFT
“You really don’t own anything with an NFT. You just have a token in a ledger and it points to a JPG in a random server somewhere. “Before the “JPG in random server” applies to things like digital art collectibles. It’s not particularly relevant to what’s going on in a game, and it’s also a bit unfair to what it means in the art markets.
For a game, a blockchain maintains the state and accounting history of the gaming economy. Individual games will decide how to interpret the data in the Blockchain. This includes the decision to block the use of items they don’t like. This means that many gaming companies will likely be involved in things like blocking the use of items that have passed through bad actors’ wallets.
The “do you own”? If “possess” means you have the power to decide to sell one good for another good or another currency with a third party, so yes, you “own” it.
Fact: Open economy games are different from closed economy games
People often point out how the games have already tried half-open and bankrupt economies. They generally don’t seem to remember that open economy games like “Magic: the Gathering exist”.
Here’s the thing: games with open economies must have different game designs. Most of them will not be successful pairing an open economy (blockchain) with a closed economy MMORPG. While there are some exceptions, most MMORPGs that have tried to switch from membership to free play have failed for similar reasons: the game design is too dependent on the business model.
Myth: A decentralized economy means a Wild West where anything is allowed
No. Each game can always choose how to do it wants to interpret blockchain digital assets. Authenticity can be verified by inspecting the provenance of items and making sure they come from certain wallets. Items sold fraudulently can be frozen. Objects can be instantiated with their own ownership of the game and modified to adapt to the evolution of the game system.
In more open ecosystems they have interoperability between worldsnothing requires a world to visualize or use an element in a way that conflicts with the intent of the new world.
Reality: Many players love NFTs
There certainly is negative reactions against NFTs. This is the classic innovator’s dilemma: adding a new business model to an existing business carries a high risk of alienation of existing customers. This is what Ubisoft ran into recently and what Star Wars Battlefront ran into when they tried to add free elements to a premium game.
It is partly a brand image problem. Unfortunately, NFTs have earned a negative reputation due to misunderstandings related to their ecological impact on games and the reality of bad actors (criminals) who exploit naivety. While there is a group of players who don’t want to see NFTs added to their games, there seems to be too many players who are receptive to the idea.
Myth: All NFTs will be interoperable
The central idea here is that we will have a chance to purchase an NFT that represents an item in a game which has some kind of utility in another game. Sometimes people claim that this means that all NFTs will offer interoperability.
Some will, some will not. And in cases where they do, they probably will limited to certain worlds and avatar systems. Some of them will be a unique world. Others will be constellations of cooperating worlds. And sometimes they will be large networks joined by common avatar systems.
Interoperability poses many challenges. When it comes to interoperability, there are actually several problems: behavior, meaning, presentation, persistence, and connectivity. Blockchain it really only solves the “persistence” problem.. The other levels require people to collaborate.
Myth: You lose your NFT if the server it points to goes offline
It is possible for an NFT to point to a URL on a server. Andt if this server disappears, the content of the NFT disappearst. The ownership of what this NFT represents remains intact.
But there are alternatives to centralized server dependencies. For example, blockchain-based storage systems such as Arweave provide permanent storage that does not depend on the availability of a server.
The deeper problem with games is that the server is more complex. After all, it’s a game server, not just a file store. And this brings much more complexity.