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What are blockchain games?

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Blockchain games (also known as NFT games or crypto games) are video games that include elements that use cryptography-based blockchain technologies. Blockchain elements in these games are most often based on cryptocurrency or non-fungible tokens (NFTs), which players can buy, sell, or trade with other players. The game publisher takes a fee from each transaction as a form of monetization. In some cases, players of blockchain games have earned enough to pay for living costs by playing some such as “CryptoKitties” and selling their winnings for fiat currencies like US dollars.

Cryptocurrencies are becoming increasingly popular, and it appears that everyone is jumping on the bandwagon. That is why blockchain technology has captured the attention of every primary industry. The gaming business seems to be one of the first to adopt this technology, but what are the prospects for blockchain games in the future?

There is a growing overlap between the blockchain and gaming communities. Gamers interested in blockchain are likely to be interested in and participate in it. The popularity of NFTs in the gaming business demonstrates this, with many uncommon and valuable NFTs changing hands within games.

The blockchain is a key component of future financial technologies. The incorruptible ledger concept is gaining traction beyond the bitcoin debates. Blockchain, which is required for establishing a decentralized banking system, may also be used by developers who want to build games with enhanced user experience.

What are blockchain games?

While blockchain games have been available since 2009 – one example being BitQuest – the first prominent location-independent decentralized application (Dapp) game was CryptoKitties. CryptoKitties allowed players to breed, trade, and sell virtual cats on the Ethereum blockchain; over $25 million worth of sales were made in its first three months. At least one game that followed (Spells of Genesis) combined blockchain elements with traditional trading card game ones to form a unique game concept, which had more success than other cryptocurrency-based games at the time. Several games have also been created using non-fungible tokens (NFTs) as their basis; these do not represent tradable assets but are used for ownership identification within the game instead.

Many modern games now include some form of digital scarcity incorporated into their design, whether related to the storyline or for gameplay reasons. In these cases, players can buy or earn virtual items through playing the game rather than purchase them with real-world cash by operating within in-game economies based on cryptocurrency tokens.

The concept of blockchain games

The concept of blockchain video games is relatively new and uncommon, so the related technology has not yet been analyzed in detail for its potential implications on future gaming. Nevertheless, several benefits are identified for using blockchain technologies for this purpose. For example, it ensures that ownership of all digital assets is tracked throughout their lifetime; it allows traditional video games to become decentralized applications which means that they no longer require centrally hosted servers; and once an item has been traded, it cannot be removed from the game’s ecosystem even if the game closes; this helps to reduce concerns of item rarity and potential abuse that would otherwise arise by creating secondary markets.

The underlying blockchain technologies of cryptocurrencies, such as Bitcoin (BTC), are used in some cases for implementing digital rights management (DRM) systems to prevent illegal duplication of virtual items, ensuring that they remain unique and one-of-a-kind. Without using blockchain technologies, players can sell or trade game assets instead of on marketplaces like eBay or unofficial ones on social media, which may lead to fraud.

Important terms to know in blockchain gaming


In many blockchain games, the play-to-earn model compensates players for playing activities and participating in in-game economies, allowing users to acquire and trade virtual goods. As a result, blockchain-based games offer players complete ownership over their virtual assets, unlike free-to-play games with in-game purchases or pay-to-play games. In addition, players are eligible for rewards, including weapons, skins, and gaming items, due to the system’s virtuous cycle.


Users must invest an upfront fee in the form of an in-game asset, usually an NFT, using the pay-to-earn technique, which is similar to play-to-earn. After that, the item’s value may grow, with time, thanks to the promise of earnings as a motivational tool.


A game that uses a play-to-earn or pay-to-earn model is often referred to as GameFi, implying the wealth potential of gaming. A successful blockchain game requires a solid blockchain architecture with fast transaction rates and reasonable costs. When buying or selling items, consumers should not (and should not) be charged significant transaction costs because they are unusable without them.

Asset ownership in-game

Gamers are wary of spending money on in-game resources that aren’t transportable and are controlled by the developer. Worse, when a gaming site goes down, gamers lose all they’ve invested. Developers may now fully own assets after tokenizing in-game items.


Blockchain games are a new type of video game in which non-fungible tokens (NFTs) provide users with a wealth of opportunities for digital asset ownership and trading within the game. Blockchain enables developers to create unique virtual items that they can use to monetize their games. It also prevents skin gambling and other gray market activities by not allowing the trade of items outside of the game’s ecosystem.

Blockchain technologies have already been implemented in some modern video games as part of their design, encouraging firms from different industries to explore these possibilities. In most cases, players can earn or win virtual items through playing the game or participating in its economy instead of spending real-world currency to purchase them.

Story by Alex Hamilton


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