Intro guide to blockchain games
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Cryptocurrency has been much talked about in recent years, as it has raised questions about investment and technology. Another recent development in this area is the use of blockchain technology for gaming.
What are blockchain games? Keep reading to learn how blockchain games work, the risks associated with blockchain games, and how to get started with some of the best blockchain games.
What are Blockchain based games?
Blockchain technology, which is used to power cryptocurrencies such as Bitcoin and Ethereum, is a ledger of transactions distributed across a network of computers. The decentralized model makes it difficult for people to change the transaction information because the records must be the same across the network.
How is Blockchain used in games?
Typical gaming systems are centralized, allowing users to spend their gaming earnings – such as XP or in-game currency – in just one game. However, blockchain games use a decentralized model so that users own their game data and can use it across other blockchain games.
For example, if a user plays one blockchain game where they win XP and weapons, they can choose to take those winnings to another game when they leave. They can also sell them or trade them with another player.
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How do blockchain games make money?
Some blockchain games also offer users the opportunity to earn cryptocurrency while playing. There are many different ways to earn crypto, which is determined by the individual game.
Non-fungible tokens
Blockchain games are also known as non-fungible token games. NFTs are digital tokens that represent a unique item. They have unique metadata that makes it impossible to replace one token with another.
Blockchain games use NFTs to create different parts of the game, such as rules, characters, weapons, and skins. Since NFTs are unique, they add value to the game funds.
With games to earn money, players can sell their NFTs on a market, exchange or auction to earn cryptocurrency. The value of each NFT is based on the current market as well as the NFT’s unique characteristics.
Who plays blockchain games?
Many types of people play blockchain games. The three most popular blockchain games have over two million monthly users. Most users live in the United States or the Asia-Pacific region, including countries such as the Philippines, China, Thailand, Indonesia, India, and Vietnam.
In terms of age, millennials between the ages of 25 and 34 represent about 37% of crypto players, followed by Gen Z between the ages of 18 and 24 with about 27%. That said, users between the ages of 45 and 54 and users over 65 are the groups that have seen the most monthly growth recently.
Blockchain Gambling Risks
While blockchain games may sound like a fun way to earn some side income, there are a few things you should be aware of before you get started. First, some games have accessibility barriers. For example, to start playing Axie Infinity, users must have at least three Axies, which can cost around $300 as an initial investment.
There is also a risk that you may lose some of your tokens or cryptocurrency. For example, the founder of Hedgie lost more than $1 million in NFTs caused by a scam, while Ronin, the blockchain used by Axie Infinity, was hacked for more than $600 million.
Since blockchain players do not have to comply with certain financial standards, such as anti-money laundering regulations, fraud may be more common in gaming than in mere cryptocurrency trading.
Finally, players can lose money on typical market fluctuations. However, some games limit how often players can withdraw their tokens, increasing the risk that players will not be able to withdraw in time to limit their losses.
How to start playing blockchain games
To start playing blockchain games, you must first own cryptocurrency and store it in a wallet. Many blockchain games are built on Ethereum, so you need to buy Ether to play them. However, you need to research exactly what kind of cryptocurrency and wallet is best for you.
You must then choose which game you want to play for the next step. Consider what types of games you will find fun, how much it costs to start playing, whether you understand how to play the game and how the game economy works.
Top blockchain games
Below is an introduction to some of the most popular blockchain games.
Axie Infinity
Axie Infinity players collect Axies, which are NFTs that can be used to battle other players. When players win a match, they earn Smooth Love Potion, which can be sold for Axie Infinity Shard tokens. Axes can also be traded, bred and collected.
As of July 2022, AXS is worth $15.64.
Decentralized country
Decentraland allows players to build a 3D world by buying land in the game and building just about anything. Players can create separate games on their land, open a shop and more. Decentraland users must own Ethereum and be able to purchase MANA currency.
As of July 2022, MANA is worth $0.9255.
Alien Worlds
Alien Worlds is a sci-fi game where players must capture alien NFTs that are used to mine items, upgrading along the way. Players can use TLM tokens to trade NFTs, win matches or complete missions. To start, players need mining tools, land and TLM.
As of July 2022, TLM is worth $0.02722.
Final Take
Blockchain games use a decentralized model so players own their game earnings and can spend them across other crypto games. Blockchain games use NFTs to create unique items, characters, rules and more.
Many blockchain games have a play-to-earn model, where players can earn cryptocurrency. For example, NFTs may be sold on a market, exchange or auction at a price based on market conditions and each NFT’s unique characteristics.
Some of the best blockchain games include Axie Infinity, Decentraland and Alien Worlds. However, some of the risks included in playing blockchain games include accessibility barriers and losing money from fraudulent activities or market fluctuations.
The information is accurate as of July 21, 2022.
