Seems like blockchain games are on a meteoric rise. The hype around the high-budget titles and their growing in-game economies is taking the crypto world by storm, but one has to wonder if this is just a fad or if they are here to stay. In this article, we will look for an answer to that question and try to paint a clearer picture of crypto gaming as a whole.
What Makes a Game Blockchain-Based
At first glance, these games are not so different from any other. However, the difference is in their underlying mechanics, specifically the decentralized tech (NFTs, smart contracts, tokens) that are woven into the core of game economies. Most of the blockchain games are either multiplayer or oriented towards player interaction through big market economies, where assets like characters, skins, weapons, accessories, etc., can be traded. Although some MMO titles like WoW have those as well, crypto games like Axie Infinity generated over $4 billion through NFT transactions. The sheer difference in the size of economies makes blockchain-based games a huge player in a completely new field. 
Some games use in-game cryptocurrencies like Ethereum (CryptoKitties) or Solana Meme Coins (Star Atlas), while others use tokens with real-world value (SLP in Axie Infinity). Certain games go one step further and allow players to vote on governance through decentralized autonomous organizations and token holdings. In essence, these games allow for a much deeper interaction between the gamers and the game worlds, as well as amongst themselves.
Why the Tech is Promising
So, what’s the catch? Is blockchain a game-changer or just a gamer’s dream? One of the key points that proponents of crypto games like to use is the true ownership these games offer. In essence, with the economies as the main axis, players get to control and own their items in and outside the game. Even if a server shuts down, the assets remain in their control. Furthermore, the play-to-earn (P2E) model utilizes GameFi tokens like Notcoin to level up the game into “digital work”. This essentially provides a platform through which players monetize their hobby.
The user-created economies that develop from these games are decentralized and, more often than not, thriving. It was not unusual for early adopters to earn thousands of dollars every month just by playing the game and trading assets (like NFT games in “The Sandbox”). It’s these possibilities for decentralization and unmatched player agency that make people vouch for blockchain games, as well as the possibilities for further interoperability. On paper, these games would at a certain point exist as a bigger ecosystem, allowing players to transfer their assets from one title to another, thus creating an interconnected playground with an overseeing market. Needless to say, these promises are attracting investors as well as players.
Why it Could be Just a Fad
If everything sounds so interesting and promising, why is there doubt? One of the main concerns of gamers who don’t believe in the future of blockchain gaming is that there is too much speculation over substance. A major worry for those who still consider gaming primarily a source of fun is that many players join only to make money rather than to enjoy the game and the community. In correlation with that, the prices of game tokens often rise and fall based on the hype rather than gameplay.
From the economic side of things, some are voicing their doubt about the sustainability of game economies. Apparently, many tokens are based on inflationary models and tend to collapse when a huge number of them flood the market. Similar things happened with Axie Infinity, which lost a great number of players after the rewards dropped.
On top of that, the legal uncertainty and regulatory red flags also present a difficulty for global rollout and scaling. Unfortunately, with different national governments still failing to align on the status of tokens and regulations of tokens, it’s close to impossible for developers to create games that can navigate that regulatory landscape in a way that will ensure that everyone gets the legal ability to play.
The Hybrid Future of Gaming
Although the developers aim high, we believe that the real future of blockchain games lies somewhere in the middle ground between the goals and shortcomings of the concept. One big change that seems to have already started is the shift from the P2E model into play-to-own, or play-to-create, offering an alternative that is more fun and less work-related.
The problems emerging from the pure economy-based model that’s attracting less players and more token hunters also seems to have a solution in sight. Limited inflation, token sinks, and capped rewards are some of the ideas developers are trying out in order to create more stable communities and markets rather than short-lived hype trains.
What many players found lacking was the quality of games, and this didn’t fall on deaf ears as now we can see serious studios working on AAA titles that promise quality gameplay and graphics alongside blockchain features. Big Time and Shrapnel are currently some of the titles gamers look forward to the most. And now that the hype is out there, even big-time publishers are testing the waters. Ubisoft is already building games on multiple chains, while Square Enix is doubling down on their crypto-related ideas despite parts of the community voicing their concerns.
Final Thoughts
While the future is uncertain, especially in an environment as volatile as the world of blockchain, there is still hope that something amazing will grow on the foundation of crypto-based games. The current models are without a doubt flawed and far from perfect, but the tech is certainly promising. With enough will for innovation and implementation of more gaming-oriented concepts like better game design and higher production values, blockchain gaming could become a niche genre that could stand head to head with eSports or VR, if not the future of gaming as a whole.
