Blockchain And Peer To Peer Will Disrupt The Current Gaming Ecosystem
According to an essay authored by Catheon Gaming’s William Wu, blockchain developments are here to stay and represent the future of gaming. This is the case despite worries about pay-to-win games.
2021 was a turning point for play-to-earn (P2E) games that used the blockchain. The popularity of play-to-earn games such as Axie Infinity, a Philippine-based start-up, has skyrocketed in developing countries. This was followed by many other games, including Illuvium, Guild of Guardians, Star Atlas, Splinterlands, The Sandbox, and Catheon Gaming’s SolChicks.
In play-to-earn games, players can participate in player-versus-player (PvP) combat or battle through a gaming narrative. This is the fundamental premise of these games. As a player progresses through the game and wins subsequent actions, they earn extra points that may be exchanged for real money or virtual cash. Additionally, players have the opportunity to reinvest their money in the game they are currently playing. Conventional gaming uses the static model, implying that games are “sunk costs.” Players never earn their investment back in terms of the time spent playing and the money spent on in-game stuff.
Meanwhile, the community has grown disgruntled with the cost of conventional games as more publishers search for methods to incorporate upgrades, premium editions, and microtransactions, which enable players to speed up their growth by buying in-game products. Because of blockchain technology, this issue has been resolved. Players may now monetize their in-game success due to blockchain gaming, which allows a non-fungible token representation of value that can be exchanged (NFTs).
In addition to delivering entertainment value, many games also provide players with the resources they need to generate income. The degree to which each game delivers on this promise depends on the amount of gameplay development.
While P2E did not become generally recognized until 2021, the concept first got considerable notice in 2017 when it was incorporated into CryptoKitties, the first extensively played blockchain-based game. However, since then, we have watched the following expansion of blockchain-based gaming, with its arcane names such as P2E and GameFi. This is due to the decentralized finance (DeFi) dApps and NFTs that started gaining attention and investment at the start of 2020.
When a product or service first enters a market and gets a considerable degree of attention, it will likely receive substantial criticism. The long-term stability of gaming economies has lately come under assault, with one analyst, Jonathan Teplitskyof Horizon Labs, suggesting that the bulk of play-to-earn video games are “a house of cards” supported by “hype and price speculation.” There is little doubt that blockchain-based gaming will disrupt the current gaming landscape and usher in a brand-new gaming ecosystem. This is true regardless of where you fall on the range of opinions about the feasibility of the P2E business model.
Decentralized applications (dApps) are digital applications or programs that exist and run on a blockchain or a peer-to-peer (P2P) network. DApps can be developed for a variety of purposes, including gaming, finance, and social media. #SUBX #knowyourdApps pic.twitter.com/jVnRekOpMg
— SUBX (@officialsubx) July 25, 2022
The number of play-to-earn games has dramatically increased since the advent of CryptoKitties. This innovative idea aims to modernize the outdated pay-to-play structure of many of the most popular games now accessible. The goal of play-to-earn is to incorporate new business models that are more commonly associated with DeFi staking, trading, lending, and even tournaments that offer top-performers payouts while maintaining the popular features that players enjoy, such as rich graphics, a compelling storyline, and challenging gameplay. As an incentive for individuals to play the game, these are made accessible to players.
After experiencing pay-to-win gaming for the first time, many gamers state that they cannot imagine playing any other game. People are questioning why they would spend US$300 in a match on add-ons, clothes, and other stuff when they can purchase US$300 assets in fun, earn with them, establish a community, and then sell the assets for more after they’re done playing, thereby making a financial return. In the past, for instance, participants were required to pay an initial charge of X dollars to join in the fun.
Gaming will be at the forefront, setting the pace and leading the way as crypto continues to progress and maybe consumes everything in its path.
In 2021, NFTs and P2E were the subjects of much hysteria. The interest of investors may eventually diminish, but the market will continue to evolve, and those who are as observant as possible about it will profit. Similar to the ICO bubble of 2017, the trajectory is comparable. After the 2018 market crash, there was a period in which major media outlets did not address cryptocurrencies. Despite this, the market rebounded, and the value of cryptocurrencies climbed over time. The pandemic has raised the public’s interest in these models, but their adoption remains inevitable.
As 2022 progresses, non-fungible tokens (NFTs) and games have emerged as the primary application categories in the blockchain industry. In 2021, the gaming business was predicted to be worth $198 billion, according to a report by Mordor Intelligence. The market is projected to reach $340 billion by 2027, representing an 8.9% CAGR over the next five years. Due to the state-wide lockdowns ordered due to the COVID-19 outbreak, some people opted to kill time by playing video games online. Additionally, the Asia-Pacific region is anticipated to have the largest market share in the gaming industry. This bodes well for the rise of China, South Korea, and Japan. This makes perfect sense, considering that games like Axie Infinity have seen tremendous popularity in Southeast Asian countries such as the Philippines, which are frequently considered the center of the P2E gaming sector.
Other considerations include the trend toward gamification, which will lead to redesigning different blockchain categories. Traditional video games have been considered a “Trojan horse” for modern technologies for a very long time. The enjoyment of gaming is often one of the most effective ways to generate interest in new technologies among the general population. This is true for personal computers, mobile phones, and virtual or augmented reality. The same applies to blockchain technology and cryptocurrency assets.
In 2018, the use of non-fungible tokens (NFTs) was anticipated to be a significant draw for big game developers and publishers, increasing the likelihood of engaging in blockchain-based gaming. Despite this, the sector may continue to rely heavily on trial and error as it decides, via practice and experience, which techniques are practical and which are not.
The rise of blockchain gaming and the accompanying disruption of the traditional gaming business are inevitable; hence, the question we must address is how the existing state of gaming will fare over time. Ultimately, sustainable game economies must attract a significant number of players who are mainly driven to play a game for enjoyment, as opposed to those who are primarily motivated to play a game for profit or money. Not to mention that inventing and developing a game with actual entertainment value is challenging.
P2E compels us to consider imaginatively how to develop or design games. When NFTs are introduced to the business, games will eventually be able to tokenize using blockchain technology. Gaming studios may interact with more gamers in more regions worldwide, not only in the area where the game was first produced. For the convenience of the players, all in-game money may be purchased, traded, and changed at any moment into fiat cash.
Developers and studios want their customers to enjoy playing their games; they must determine how to keep players engaged in the action. Play-to-earn games will be a dominant force in 2022 because they not only provide users with purpose and meaning via economic incentives, granting real-world utility and value, but also allow users to collaborate, compete, strategize, and form strong relationships in a world where people are forced to be apart. Play-to-earn games will dominate because they provide consumers with purpose and meaning through economic incentives, providing real-world usefulness.