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Recalling the problems of traditional gaming discussed in Module 1, on-chain gaming offers solutions to most of these.
A major benefit of on-chain gaming is the reduced reliance on central authorities to manage a game’s ecosystem. In traditional gaming, as discussed in the first module, developers and publishers control all game data, player accounts, and in-game assets through centralized servers. This centralization subjects players to the rules and decisions of the game company, which can lead to changes in game mechanics, censorship, or even loss of access to the game.
However, on-chain gaming operates on decentralized principles. Game data is distributed throughout the blockchain, and players have true ownership of in-game assets. On-chain gaming empowers players to manage their own gaming experience and protects them from arbitrary decisions made by gaming companies.
In traditional gaming, players often invest significant time and money into acquiring in-game items, characters, or skins. Despite these investments, players do not truly own these assets, as they are stored on centralized servers controlled by the game company. If the game shuts down or the company changes its policies, players can lose access to their assets. Additionally, if a player decides to stop playing, their assets cannot be easily sold.
On-chain gaming addresses this issue by utilizing NFTs to represent in-game items. NFTs are decentralized, allowing players to have full ownership and control over their assets. Players of on-chain games can easily buy, sell, or trade these NFTs, enabling them to potentially earn a return on their investment. Unlike in-game currencies controlled by traditional game developers, which are confined to the game’s ecosystem, NFTs can be traded for actual cryptocurrency, providing greater liquidity and value.
Blockchain technology and NFTs also allow for easier authentication of items. Since blockchains are immutable, once a transaction is recorded, it is very difficult to tamper with without detection. Moreover, since each NFT has a unique code, NFT transactions can be easily verified to ensure that what you see is what you get. This transparency and immutability reduce risks from hacking and fraud, making on-chain games more secure.
While most economic value from traditional gaming was very rare to come upon (you either had to be a successful streamer or professional esports player), it is much more common in on-chain gaming. Particularly with the play-to-earn (P2E) model, many can be instantly rewarded simply for playing a game. In a P2E model, players can be rewarded with cryptocurrency or NFTs for in-game achievements, such as winning battles, completing quests, or participating in events. The ability to trade or sell these NFTs creates a dynamic market where players can buy valuable in-game items from more experienced players.
On-chain games often feature their own in-game currencies, represented as fungible tokens on the blockchain. These currencies can be earned through gameplay, traded with other players, or used to purchase items within the game. Effective management of an in-game economy involves careful consideration of tokenomics, including balancing supply and demand, controlling inflation, and maintaining currency value.
External platforms can even add another card to the mix. For example, Tribally offers rewards for playing partner games. And features a “Wager” mechanic that allows players to earn additional tokens by wagering on game outcomes. Content creators and game studios also benefit from these wagers. Moreover, banding together as a community through forming groups, guilds, or tribes and completing quests together offers the opportunity for even more rewards.
Overall, on-chain gaming introduces a range of innovative ways to manage in-game economies and earn rewards, expanding economic opportunities for players and developers alike!
Decentralized Autonomous Organizations (DAOs) facilitate community-driven development. In traditional gaming, development decisions are typically made by the game company, with minimal input from the player community. This can result in decisions that don’t maximize the game experience for their players.
In contrast, on-chain games that implement DAOs allow players to propose, vote on, and fund new features for the game. By holding governance tokens, players can actively participate in the DAO and influence the game’s direction according to their collective interests.
This decentralized approach not only promotes a more engaged and involved player community but also ensures that the game evolves in ways that align with player preferences. Increased engagement through DAOs can enhance player retention and contribute to the overall growth of the game.
While on-chain gaming offers numerous benefits, there are also a lot of things that it needs to consider!
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