You may wonder how the games industry can take advantage of emerging technologies such as blockchain to help video game companies benefit their players, stakeholders and also their games. Well, in this article we're going to do just that by exploring the main aspects of this trend.
1. Understanding Onchain Gaming
- Definition: Games that operate entirely on the blockchain, using smart contracts for transactions.
- True Ownership: Players own in-game assets as NFTs, allowing them to buy, sell, and trade freely, unlike traditional games.
2. Benefits of Onchain Gaming
- Digital Permanence: Games can exist indefinitely, protecting players' investments against server failures.
- Decentralization: No single entity controls the game, promoting fairness and transparency.
- Innovative Mechanics: Leverages blockchain features to create experiences that traditional games cannot offer, such as provably fair outcomes.
3. Challenges Faced by Onchain Games
- Scalability Issues: Current blockchain limitations can hinder performance, especially for fast-paced games.
- User Experience: Complexity in blockchain interactions can deter traditional gamers from engaging with onchain titles.
4. NFT Gating in Onchain Gaming
- Definition: A mechanism that restricts access to game features based on NFT ownership.
- Enhanced Engagement: Creates exclusive content for NFT holders, incentivizing investment and fostering community.
- Examples: Players may need specific NFTs to unlock special levels, characters, or items, enhancing the sense of exclusivity.
6. The Future of Onchain Gaming
- Enhanced Customizability and User-Generated Content (UGC): Onchain games allow players to modify game elements and create content, similar to platforms like Roblox and Minecraft, enriching gameplay and boosting revenue.
- Interoperability Across Games: Onchain gaming enables players to use their in-game assets across multiple games, enhancing engagement by allowing them to carry achievements and collectibles into different environments.
- Decentralized Governance Models: These games can incorporate governance structures that give players a say in decision-making, fostering community ownership and accountability.
- Innovative Monetization Strategies: Onchain frameworks support new monetization methods, such as play-to-earn models and fractional ownership, creating sustainable in-game economies.
- Integration with the Broader Crypto Economy: Onchain gaming increasingly connects with the broader decentralized economy, allowing players to earn and trade assets beyond the game itself.
- Technological Advancements: Improvements in blockchain technology, like zero-knowledge proofs and layer-2 solutions, will resolve scalability issues, enabling faster and more complex gameplay.
- Challenges and Resilience: Onchain gaming must overcome technical challenges, user experience issues, and bot interference to maintain player trust and engagement.
Conclusion
Blockchain games are an exciting frontier that combines blockchain technology with interactive entertainment. There are still many challenges to be faced if their adoption is to become widespread. Companies need to develop their technology, understand their audiences and see how they can benefit from it. PERCS is trying to help these companies by creating tools they can use, such as our NFT Gating one!
