The digital playground is evolving, ushering in a new era of player-centric gaming thanks to blockchain technology. Gone are the days of chasing high scores for valueless pixelated prizes. Now, people can earn real-world rewards as they embark on quests. Non-fungible tokens (NFTs) are revolutionizing in-game achievements, offering tangible benefits and true ownership.
Developers are leveraging blockchain to transform traditional game design fundamentally. They’re decentralizing in-game economies, tokenizing achievements, and returning control to the players who drive the gaming world. This shift empowers gamers, giving them a stake in the digital universes they love and play in, making every quest, battle, and achievement more meaningful and rewarding.
Key points
What is blockchain?
First, let’s discuss blockchain and its main characteristics. Blockchain is often used in a financial context as something inextricably linked to cryptocurrencies. However, it is not exclusively a financial tool, and its applications can go far beyond supporting cryptocurrencies.
In general, blockchain is a large digital data registry that stores information about certain assets. But these assets themselves can be, as in the real world, different. They can be cryptocurrencies or digital objects. Cryptocurrencies will have only economic value and will be fully interchangeable (you can exchange one Bitcoin for another, and nothing will change). Still, it will not be possible to simply replace one object with another (for example, two different digital paintings will not be interchangeable).
Such unique digital objects recorded on the blockchain are called NFTs (non-fungible tokens). These include digital game assets (e.g., swords, shields, and cards). Strictly speaking, in theory, there are different opinions on whether fully fungible game assets (e.g., swords that exist in quantities of 100 and have no unique characteristics) should be considered NFTs, but in practice, they are referred to as such.
A blockchain registry has several features:
- Decentralized. No single person/business/entity owns or controls the data in this registry. The data can be seen and used by everyone.
- Immutable. The data in this registry cannot be changed. For example, Alexander has 10 Bitcoins. Until he spends them or sends them to someone else, he will always have 10 Bitcoins. No one can change this data. Hence, by the way, such a characteristic as transparency/provable ownership history.
- Provable scarcity. Assets in such a registry are limited in number and cannot exceed the amounts set by their creator. For example, there can only be 21 million Bitcoins. For digital assets, these limits can be anything else; for example, special shields have been created, and there are precisely 100 such shields.
Since this is a registry of asset data, the characteristic records in this registry will be information about the ownership of these assets and transactions with them.
Impact of blockchain technology on the gaming industry
So, what is blockchain technology’s impact on the gaming industry beyond the immediate changes in game mechanics?
The main change is the transformation of player ownership of assets. Game assets are no longer tied to games but to the players themselves. Thanks to blockchain’s public and decentralized nature, asset ownership is transparent and protected from hacking. In this way, players’ time and money investments become much better protected. In addition, asset ownership becomes much more valuable by allowing assets to be used in different games.
The transformation of ownership, transparency, security, and the broad applicability of assets give rise to new economic models and patterns in the gaming industry. However, don’t assume blockchain-based gaming models have no risks or drawbacks. On the contrary, such a link to finance coupled with the explosive growth of this trend is often an attraction for unscrupulous people, and the practical application of this technology in games is often criticized. Some of the drawbacks:
- Exploitation of NFT in unscrupulous schemes. For example, one of the largest NFT marketplaces, OpenSea, reported that about 80% of NFTs created with free tools are plagiarized or spam.
- The focus is on monetization rather than developing the game experience. Most existing blockchain games are monetization projects, where both developers and players focus on making money rather than developing the game experience—story, creativity, etc.
- Environmental damage. NFT transactions are most often conducted on the Ethereum blockchain. This network consumes a lot of electricity, which the company itself has repeatedly acknowledged. It has taken steps to drastically reduce its electricity consumption.
As we can see, blockchain technology has not just impacted the gaming industry. It has transformed it, giving rise to a new round of development at the intersection of gaming and economics. It’s too early to be definitive about the nature of these transformations. Still, they continue to happen before our eyes, and we’re likely to see many more interesting changes shortly.
We also recommend you read our article The Future Of Blockchain Technology In Education.
5 steps you need to develop blockchain-based games
Here are 5 main steps of blockchain game development.
Select a blockchain framework
Begin by selecting a blockchain framework that suits the game’s unique demands. Ethereum is known for its reliability. However, you might also consider gaming-focused blockchains like Ronin. They are designed to support high transaction throughput and low latency, which are critical for an optimal gaming experience.
Develop smart contracts
Smart contracts form the backbone of blockchain games. Developers must ensure these contracts efficiently handle complex game logic, rapid state changes, and interactions between multiple contracts. Optimizing smart contracts for high performance is crucial to managing a large volume of transactions quickly and cost-effectively, minimizing the computational resources needed, and reducing transaction fees (gas fees).
Consider graphics and art style
While the technical aspects of blockchain games, such as the backend and the blockchain system, often take center stage, the importance of graphics and art style should not be overlooked. A game’s visual appeal plays a crucial role in engaging and retaining players:
- Aesthetics matter. Ensure the game looks visually appealing to attract and retain players. High-quality graphics and a consistent art style can significantly enhance the overall gaming experience.
- Target audience. Tailor the art style to resonate with your target audience. For example, a game aimed at younger players might use vibrant colors and cartoonish characters, while a game targeting older players might opt for more realistic or sophisticated visuals.
- Character design. Develop unique and compelling character designs that players can connect with. Memorable characters can enhance the player’s emotional investment in the game.
By carefully considering graphics and art style, developers can create blockchain games that are not only technically robust but also visually captivating.
Establish game economics
Tokenomics is crucial in defining how the native token functions within the gaming ecosystem. This can include using it for in-game purchases or as reward for player achievements and participation. To encourage mass adoption, it’s essential to finalize the token supply and distribution schedule and ensure seamless integration with the game interface and traditional economies.
Implement security measures
Security in blockchain games encompasses protecting gameplay fairness and safeguarding user data and assets. Developers must defend against Sybil attacks and other spam tactics that can disrupt the network. Anti-spam measures like rate limiting, transaction fees, or prioritizing transactions based on token holdings or account age can be effective.
Why choose SoloWay Tech as a blockchain game development company?
SoloWay Tech is a Ukrainian software development company with expertise in numerous domains, from EdTech to blockchain solutions development. Why you should choose crypto blockchain game development at SoloWay Tech:
- Expertise. We have been working in the blockchain industry since 2018 and have gathered a reliable team of over 20 specialists with extensive experience in this area.
- Relevance. We follow industry trends, communicate with leading experts, and attend thematic conferences in different countries.
- Effectiveness. We delve into the business goals of the project. We work out the task comprehensively. We select the best options to achieve the result.
- Transparency. We provide access to our system for tracking work and generate monthly reports on each plan item. Let’s discuss your project!
