The making of a new economy
In the past, creating a well-functioning marketplace with an in-game currency and open standards for game content was simply outside the scope of any development studio. With blockchains, this has changed. Developers can launch a token within an hour or create nonfungible tokens (NFTs) for game materials.
The feature gives users strong property rights and the ability to take their characters and items outside of their games to third-party marketplaces or even into other games with little extra development cost.
As a result of the addition of decentralized finance (DeFi) technology, players have financial opportunities they have never had before, which have led to the lightning-fast adoption of these games.
Comparing the top five blockchain games : Alien Worlds, Axie Infinity, Bomb Crypto, DeFi Kingdom and Splinterlands. There are different gameplay features and incentives in each of these games. There is a comparison of daily active users, transactions, deposits and gameplay – along with tokenomics, which are economic incentives for the in-game currency.
But, no report would be complete without covering the dark side of blockchain gaming. Environmental concerns, a sharp divide between the haves and the have-nots, the legality and tax implications are all valid concerns around these new economies. This is especially important as the sheer success makes these games increasingly attractive to players and game developers.
GameFi titles were responsible for more than 35% of all Polygon transactions during peaks in 2021 and early 2022. But, without addressing the possible issues, the long-term viability of the whole blockchain game space is compromised, as critics and regulators will use these arguments to hinder development or make it harder for players to participate.
Get ready, fight!
The report has an optimistic conclusion about the future of blockchain gaming and the potential unlocked by economic freedom. Lower transaction costs, stronger property rights and open standards all work together to break open the planned economies of prior game markets.
Blockchain technology opens a world of new opportunities for developers and players. If environmental and regulatory concerns can be addressed, 2022 will be the best year for GameFi yet.
This article is for information purposes only and represents neither investment advice nor an investment analysis or an invitation to buy or sell financial instruments. Specifically, the document does not serve as a substitute for individual investment or other advice.