Blockchain Games: Entertainment and Earnings

Blockchain games blend entertainment with the potential for earnings, utilising the technology behind cryptocurrencies. A key feature of these games is the use of NFTs (Non-Fungible Tokens), allowing players to own unique digital items. This aspect turns gameplay into an opportunity for investment, with items being bought, sold, and developers earning from transactions.

A platform that showcases the potential of combining gaming with blockchain technology is Stay casino login. It highlights how digital casino platforms are increasingly incorporating blockchain and NFTs, offering users both entertainment and the chance to earn. This evolution in gaming opens new avenues for digital ownership and financial opportunities within the entertainment industry.

a bunch of objects that are on a wall — Photo by Shubham Dhage on Unsplash

What Are Blockchain Games?

The main difference between these games is that they use the mechanics of blockchain systems. In some cases, these mechanics can be used as an in-game tool. NFT games are developed based on blockchain and cryptography technologies.

The gaming industry is one of the best areas to invest in. There are a number of facts that confirm this:

Prevalence. About 90% of people spend some part of their time playing games (desktop, mobile and other).
Cognitive. With the help of the game form, complex things can be explained in simple words.
Accessibility. Games allow you to convey information to a huge number of people.
Profitability. This sphere is very profitable. The level of income of producers of mobile games is getting higher every year.
The opportunity to earn without making special efforts. The very idea of earning income without labour costs is very attractive to the mass audience.

Thanks to all this, the gaming industry is developing very quickly. But what is it about blockchain games that attracts people? How are projects like Lucky Block better than many other, more mainstream products?

The most important advantage of NFT is the opportunity to own a unique item. A person becomes the owner of an item that no one else has. This attracts players and encourages many to invest in the industry. After purchasing an item, the gamer feels like the owner of a unique item, which is the essence of NFT.

The gamer can do whatever he wants with his token. For example, exchange it for another item, sell it or send it to a collection. To transfer his property to other users, the player does not need to sell his account. There is no need for various "guarantors" and intermediaries.

NFT technology and the fundamentals of game design form a unique in-game economy. Financial relationships are created between players.

Developers of blockchain games make money from commissions. As a rule, its size ranges from 0.1% of the total amount of transactions, but in some cases it reaches several per cent. This commission can be compared to royalties for artists/designers whose tokens and work are constantly changing hands.

Blockchain Game Terminology

Game Theory

This is a scientific method for studying mathematical models of strategic interactions between rational actors who make certain decisions. It is used in all areas of social sciences, in logic, computer science and blockchain. In the latter, game theory is used to design networks.

Initially, this method was primarily associated with so-called zero-sum games. Their essence is that if one participant wins, the other players go at a loss.

Some blockchain games (e.g. Fomo3D) are an example of how zero-sum games can utilize human rationality.

Tokenomics

Blockchain games utilise tokens. They help form incentives to create new assets. In addition, tokenomics creates a variety of interest groups in the network. This enables developers to leverage various elements of game theory.

Decentralisation

Every user can examine the code that is used in blockchain games if desired. This transparency is very much appreciated by modern users. No one will be able to control the outcome of the gameplay. If someone releases an update that is not supported by the community, the game will likely branch out. In other words, users will simply create multiple versions of it.

Play-to-earn Principle

While playing the game, users receive various items (weapons, skins, etc.) that can be sold or exchanged for other goods. The gamer has full control over his digital assets.

Pay-to-earn Principle

The gamer needs to purchase a game asset (often an NFT) to start earning from the blockchain game. In this way, the user pays to enter the meta-universe. At the same time, the asset can increase in value after some time.

Game Decentralisation (GameFi)

Typically, the "play to earn" and "pay to earn" models refer to GameFi projects. The term emphasises the great revenue potential of blockchain games.

A good game should be based on a trusted blockchain. In this case, transaction rates should be high and commissions should be minimal. This way, consumers will not have to pay large sums for various transaction costs.

Assets in Play

Players are reluctant to buy in-game assets that cannot be transported and out of the control of developers. If a game site stops functioning for one reason or another, gamers will lose all their cash invested in characters. Earnings blockchain games solve this problem, as tokenisation of assets allows for the creation of NFTs that can be disposed of at will.

Benefits of Blockchain Games

Let's take a look at the main advantages of blockchain games:

The Ability to Dispose of Assets Outside of the Game

In conventional games, items received have no value outside the meta universe. Blockchain projects differ in that the collectibles are inside a distributed open database represented by tokens. This allows the items to be used not only in-game, but also outside of the game. For example, by going to the OpenSea trading platform, a user can sell items from their collection.

In this way, blockchain game tokens can be used for initial liquidity or rake loading in new games. The gamer is no longer tied to a specific project.

Transparency

As previously mentioned, any user can view the code of blockchain games. This increases the loyalty of the community. This is especially true for projects that involve stakes. All rules and incentive mechanisms can be verified by gamers themselves. Thus, the probability of fraud is significantly reduced.

Real Incentives

In blockchain games, the gamer can receive real assets. This forms more "live" incentives, which increases user engagement.

Developers cannot arbitrarily change the rules and mechanisms of the blockchain game. This increases the trust level of gamers. Everyone has the same goal - to make money.

Renewability

As a rule, conventional games run on a centralised server. If it closes down, the project will cease to exist along with all the users' items.

Blockchain games can be branched out using smart contracts. In addition, gamers can independently develop new games with assets from the previous game if it suddenly stops working.

Low Cost Migration

In order to reduce the cost of game rules, a smart contract can be developed. It can be customised so that it interacts with other subcontracts. In doing so, all the information will be stored in yet another contract. To change the behaviour would require the address of the subcontract. This way, developers will not need to change the data.

Types and Genres of Blockchain Games

There are several main types of blockchain games that can be combined with each other:

Games with rewards in the form of in-game coins and tokens (including those that can be sold on the market). A prime example is the SLP in the Axie Infinity project. The gamer receives a reward for his in-game activity (Play-to-Earn).
Free-to-play games. They do not require the player to invest. For example, in the same category can be attributed to projects of educational and training nature. Free games exist thanks to donations. Simply put, gamers will buy for money various items and opportunities.
Games with non-exchangeable tokens. Gamers can create NFTs or receive them for one activity or another. Within the game, they can be represented as weapons, characters, tools, and other objects.

Games on the blockchain with the opportunity to earn are also divided into types depending on their purpose:

Collectible. In such games, gamers are engaged in collecting unique digital assets, which are presented in the form of cryptocurrency heroes, cards, pets, etc.
Economics. The gamer takes part in the economic processes of the game world. He can create, sell, buy or exchange assets.
Strategic. The essence of such games is to manage your characters or an entire army to win in various battles for territories or resources.
RPG (role-playing games). In such blockchain games, users fight various monsters and other gamers, participating in quests and going through various adventures.
Social. They focus on gamers interacting within a virtual space. Players form communities and social connections.

All of these types of blockchain games have their own distinctive features and unique opportunities to gain tokens.