In our last blog, we discussed the basics of blockchain games. We discussed the role of blockchain in the gaming industry and how it is revolutionizing the current gaming industry. If you’ve not had a chance to read it, you can give a read – Blockchain Games – An Introduction to the New Era of Gaming.
In this blog, we will deep dive into the limitations of blockchain in the gaming industry, have a look at monetization opportunities in crypto gaming, and, in addition, look at some of the known real-world examples of blockchain games. So without further ado, let’s get started.
Major Limitations of Blockchain Games
As read in our last blog, a Blockchain is a kind of ledger technology that aims to store information and escape it from being hacked, tampered or altered.
We know that the introduction of blockchain games will bring a new dawn to the gaming industry, but it still has limitations and challenges. And what are these limitations? Let’s have a look:
One of the limitations of blockchain games is the scalability factor. Gamers often indulge in thrilling and exciting games to play, and one thing they hate is the game lags and network congestion.
Unfortunately, this scalability issue sometimes cripples the operations of almost all blockchain games that are run on Ethereum. For instance, Ethereum, due to low throughput (only 13-15 transactions per second) and high transaction costs, often is unable to maintain speed and functioning, which ultimately hampers the end user experience.
Gaming Complexity & Cost
Another challenge that blockchain games possess is complexity. Compared to other gaming options, blockchain games are pretty complex. The complexity lies in the storyline and the internal system itself.
In order to start playing most blockchain and crypto games, the player is supposed to create an account, which is undoubtedly the easy part. Then, depending on the blockchain technology of the blockchain game and the wallet system the game uses, the gamer has to set up a cryptocurrency wallet to buy a certain amount of crypto, where the gaming complexity lies.
For example, if the blockchain game is made to run on the Ethereum blockchain, the player will need to buy ETH; similarly, if it is Binance Smart Chain, one has to buy some BNB, including the transaction fees.
Poor UX and Lack of Adoption
Being involved in a super exciting game that offers intriguing storylines, exciting battles, a sense of competition, and a tremendous customer experience is a priority for any gamer. Every avid gamer prefers playing well-renowned games and is acknowledged in the gaming community.
And this is where blockchain games often lack compared to various other video games available on the market due to the issues of poor UX and lack of adoption. In addition, most blockchain games have poor UX compared to other platforms and are not professionally developed to equip their end users with an out-of-the-box experience.
The key reason behind the lack of adoption and robust development is the lack of blockchain game development companies who understand blockchain and gaming, which is why blockchain games aren’t still massively adopted by the gaming community.
Monetization Strategies in Blockchain Games
According to Statista’s records, 87% of avid gamers buy downloadable content. Their purchases include in-game currency, cosmetic enhancements, and weapon upgrades.
Now think of the monetization opportunities these virtual assets might offer?
It’s no secret that gaming is one of the most highly profitable industries nowadays. However, virtual assets, which are as valuable as tangible assets, make indulging in blockchain games even more thrilling for gamers.
Suppose you could ask any blockchain game entrepreneur or company why they got into blockchain gaming. In that case, the most common answer will be the high monetization opportunities that blockchain games, crypto games, and NFT games offer.
We have curated the top monetization strategies that the blockchain game entrepreneurs and companies majorly adopt.
Here you go:
The most common monetization model of blockchain gaming is in-game purchases. In contrast to other games, blockchain games allow gamers to create their cryptocurrency and wallet. And using their crypto wallet, gamers can buy in-app items, earn rewards in crypto, and manage all the game tokens.
One more popular way for blockchain game developers to generate revenue is in-game ads. For any blockchain game development company, one of the main challenges encountered is to figure out how they can make their in-game ads less annoying.
To escape hindrance in the gaming experience, blockchain game developers opt for rewarded advertising videos and surveys. This means that if the user watches a video till the end or completes a survey, they are rewarded with some cryptos, which again act as an engagement trigger to attract more customers.
Introduction of NFTs
Another prominent monetization model that cannot be found in other games is the introduction of NFTs. NFTs, i.e., Non-fungible tokens, are unique tokens with real-world value and can be used in open marketplaces. The introduction of the NFT phenomenon in blockchain games helps game developers make money and enables the players to turn into investors who can earn passive income by trading valuable NFT tokens.
Now that we have looked at the limitations of blockchain games and the monetization opportunities in blockchain gaming, let’s explore some of the real-world examples of blockchain games.
Top Blockchain Games 2022
Before you go on telling you what this crypto game is all about, let us tell you Axie is the same crypto game that has generated $485 million in revenue since July and is drawing a massive amount of players from developing countries.
With that milestone, you might have understood that Axie certainly has no competitor in the league to dethrone this undisputed king. The critical reason Axie is one of the most popular crypto games is the introduction of NFTs as pokemon like gaming entities. Basically, in Axie, the players can buy, exchange and battle Axies in tournaments.
In addition, what sets Axie Infinity apart from other gaming platforms is its virtual economy, where the in-game tokens Smooth Love Potion (SLP) and Axie Infinity Shard (AXS) are witnessing some significant gains (of up to 5,700% as of recently). Axis infinity has been a hit in various countries, especially in the Philippines; it is observed that the players have gone from making it a side hustle to a full-time occupation.
CryptoKitties is one of the first introduced blockchain games, launched in November 2017. Since its inception, CryptoKitties has been a popular blockchain game built on Ethereum, and in CryptoKitties, the gamers can buy, breed, and trade charming cartoon-like cat characters with varying rarity levels.
The game aims to create a new generation of kittens equipped with unique traits and store them until they maximize their value in the market. Each kitten can be differentiated from another based on genes representing various traits like fur pattern, eye shape, mouth shape, base color, and accessory color.
Splinetrlands is a blockchain game based on a virtual card battling game. The players collect the cards, build their deck, and then battle against other gamers in this game. The players can purchase these virtual cards through the official in-game shop or marketplace.
What differentiates these battling cards is that every card entails a unique NFT equipped with different stats and abilities. These NFT Cards can be collected, sold, or combined to level up the game.
Another popular collectible card blockchain game inspired by magic is Gods Unchained.
Watch: Gods Unchained Trailer
Gamers primarily build decks and play cards to fight and defeat their opponents. Being a blockchain game, players hold ownership of the cards as they win, sell or trade them at will. These collectible cards are digital assets that cannot be copied or modified without the owner’s permission, making them unique and valuable.
For the players who are skeptical about the purchases and aren’t ready to go all-in, there’s a free-to-play option to enjoy the game.
Sandbox is a metaverse game wherein players can own land, build, play, and participate in virtual experiences.
By owning a sandbox plot of the virtual land, the gamers can monetize the experiences they create within the metaverse.
Watch: Sandbox Official Trailer
What intrigues the players to play Sandbox is that all the gaming features can be purchased and sold using the SAND token, which ultimately expands and amplifies the gamer’s metaverse experience. In addition to just trading land, the players can also deal in NFTs that can be further used to customize their gaming avatar’s appearance.
You may have realized that Blockchain games are way ahead of what we could ever think. So be it in terms of technology or terms of monetization opportunities, although a few things need to be catered to, like user experience and scalability. But we are sure that in no time will these limitations be overcome.
Blockchain games will bring a new dawn to the current gaming era as day by day, people are intrigued with blockchain technology and are trying their best to step into the market. Meanwhile, if you think you have an envision that can be turned into reality, connect with the experts at CopperMobile, and let’s explore the possibilities of paving the way toward your business idea’s success.