Have you ever found yourself deeply immersed in a game, investing countless hours and even money, only to realize that your in-game assets hold no real-world value? Whether it’s unlocking rare characters, purchasing exclusive skins, or leveling up your avatar, traditional gaming often leaves us with nothing to show for our efforts outside the virtual world.

But what if that could change? Imagine a world where the time, energy, and money you invest in gaming could actually pay off—where your digital assets aren’t just pixels on a screen but real, tangible items that you fully own and can sell, trade, or even use in other games. That’s the promise of blockchain games.

What are Blockchain Games?

Blockchain games are known as Crypto or NFT or Web3 video games that integrate blockchain technology. As we know blockchain is a transparent, secure, and decentralized ledger that records transactions across multiple computers. Blockchain gaming, allows users to get full ownership of their in-game assets. What does this mean? You can recover the value of in-game assets like your character upgrade, tool or the recently bought superpower,  even after your favourite game shuts down. The revolutionary innovation changed the whole gaming industry. 

Gone are the days when your favorite game shutting down meant losing everything you earned. In blockchain gaming, your assets are stored securely, and you can continue to benefit from them long after you’ve logged out.

Blockchain gaming incorporates these elements using tokens. These tokens can be fungible or non-fungible tokens. 

Now let’s understand what has NFTs to do with it. How these tokens can be used? Let’s get to know it. 

What are Gaming Tokens in Blockchain Games? 

There are two types of Gaming Tokens:

1. Fungible Tokens (FT): 

These are identical digital tokens and can be exchanged for one for one. For example – cryptocurrencies like Bitcoin or Ethereum, where each unit is the same as another. In blockchain gaming, fungible tokens are often used as rewards. You can earn or purchase these tokens and use them within the blockchain games to buy items, upgrade characters, or trade with another player. 

2. Non – Fungible Tokens (NFTs):

NFTs cannot be exchanged on a one-to-one basis because each NFT has distinct attributes. They are often used to represent ownership of unique items, such as – art, music, or in-game assets. NFTs are the cornerstone of blockchain gaming. It represents unique in-game items such as characters, weapons, skins, or even virtual land. Because each NFT is unique, its value can vary based on rarity, demand, and other factors. Players own these assets in blockchain games, which means, they can sell, trade, or use them outside the game environment.

Now that we understand all about gaming tokens let’s explore more about blockchain games. Just like traditional games, there are many types of blockchain games. 

Types of Blockchain Games:

1. What are NFT Games? 

NFT games are a type of blockchain games that utilize NFTs. For example, if Call of Duty presented their characters and gun skins as NFT on the blockchain, they would be NFT games. Blockchain gamers own their items as tokens in an NFT wallet. You have the power and freedom to transfer or sell them for real money on secondary NFT marketplaces. 

Example : 

Axie Infinity: A popular NFT game where players collect breed, and battle creatures called Axies, each represented as a unique NFT. Players can earn tokens by participating in battles, which can be traded or sold on cryptocurrency exchanges.

2. What are Play to Earn (P2E) Games?

P2E games allow players to earn crypto tokens as rewards for winning battles, completing tasks against other players, or progressing levels. These tokens are often converted into real-world money. The more time you invest in the game, the higher your chances of winning rewards with real value. 

Example of P2E Blockchain games:

Splinterlands: A digital card game where players earn rewards in the form of cryptocurrency by battling others.

Alien Worlds: A space exploration game where players earn Trilium (TLM) tokens, which can be staked or traded.

3. What are the Metaverse Games? 

We all are familiar with the word, ‘Metaverse’. The metaverse is an integral part of the transition between traditional and blockchain gaming. A virtual world where players can build and trade virtual land, assets, and experiences via NFTs. You will get a touch of realism while playing digitally. Even you can monetize the experience they create.  Metaverse platforms offer gamers multiple ways to earn money via gaming incentives, rental or NFT-based property, and many more. 

Example of Metaverse blockchain games:

Decentraland: A virtual reality platform where players can buy, develop, and sell parcels of land as NFTs.

The Sandbox: A virtual world where players can create, own, and monetize gaming experiences and virtual real estate.

4. What are the Strategy Games? 

These blockchain games allow strategic planning, resource management, and decision-making. They allow ownership of in-game assets, governance, and economy. 

Example: 

Gods Unchained: A blockchain-based trading card game where players own their cards as NFTs and use them in strategic battles.

5. What are the Sports and E-Sports Games?

Yeah, even though we are talking about blockchain games, E-Sports games have to be part of it. These games focus on sports, either real or fantasy. It involves collecting and trading player cards, managing teams, and participating in competitions.

Example :

NBA Top Shot: A blockchain-based platform where players collect, trade, and own officially licensed NBA highlight moments as NFTs.

Zed Run: A horse racing game where players own, breed, and racehorses, with each horse being a unique NFT.

But what are the benefits of playing these blockchain games?  Let’s explore: 

Benefits of Blockchain Games:

1. Ownership

The biggest benefit of the blockchain games is the complete ownership of in-game assets, such as – characters, items, and virtual lands. Assets are represented as tokens on the blockchain, which means you can buy, sell, or trade them outside of the game any time you want. You have full control over their digital belongings. Also, an item acquired in one game could be used in another, provided both games are built on the same blockchain or support the same standards.

2. Earn

As I said in the beginning, you can earn money through games. In Blockchain games, by winning the battles, you would be rewarded, and these rewards can often be converted into money. Just imagine, you can generate income from gaming activities, which was once your hobby. 

3. Decentralization

Blockchain games ensure that your assets are recorded on a decentralized ledger. You don’t need authorization; all actions are transparent. Players can trust that the game is fair and their assets are secure from other parties. 

4. Security

Because of the decentralization, blockchain games are highly secure from hacking and fraud. Once your asset is recorded on the blockchain, it cannot be duplicated or altered. 

5. Profit

Who doesn’t like to gain profit? Blockchain games are perfect for earning money for players and game owners. Since the critical concepts of such projects are crypto-finances and a focus on earnings, it creates continuous money traffic. Gaming-related transactions are significantly higher than any other in the crypto market sector. As a result, while gamers make money by playing blockchain games, project owners make a fortune by charging entry and transaction fees. 

however, Players and developers can enjoy lower transaction costs than traditional gaming platforms, leading to more favorable economic terms and potentially higher profits.

As we are gradually getting familiar with Blockchain games, we should definitely explore some of the popular games that exist in the blockchain market. 

Popular Blockchain Games: 

1. Axie Infinity

Source: shrimpy academy

Axie Infinity remains one of the most popular blockchain games. The game shares similarities with Pokemon but the characters are called Axies. It is known for its play-to-earn model where players collect, breed, and battle creatures called Axies. Each Axie is a unique NFT, and players earn Smooth Love Potion (SLP) tokens that can be traded or sold for real money. The game’s strong community, economic opportunities, and continuous updates keep it relevant. It has also expanded its ecosystem with new features and partnerships.

2. The Sandbox

Source: Casinos.com

The Sandbox is a metaverse blockchain game where you can build, land, play, and participate in virtual activities. You can monetize their gaming experiences using NFTs and the platform’s native token, SAND. It combines elements of gaming, virtual real estate, and social interactions. 

SAND is the in-game currency, and it is an ERC-20 utility token used for every transaction in the game. The Sandbox has attracted major brands and celebrities, leading to a vibrant ecosystem of user-generated content and virtual events, making it a key player in the metaverse space.

3. Decentraland

Source: albawaba.com

Decentraland is a virtual reality platform that allows players to purchase, develop, and trade virtual land as NFTs. Players can create and monetize their own virtual environments, experiences, and assets. Decentraland is one of the most popular blockchain games. It has become a hub for virtual events, social gatherings, and digital commerce, drawing a diverse community of users and creators.

4. Age of Rust

Source: ageofrustgame.com

Age of Rust is one of the treasure hunt-based blockchain games using puzzles. The game supports cryptocurrency and all the in-game transactions are carried out in crypto. Players will benefit from the in-game economy and get useful collectibles and items. The game has amazing graphics and a well-detailed storyline. 

Players are also rewarded with Bitcoin bounties if they make it to the finals of the blockchain game. The game revolves around Quinn the main character as he tries to save humanity from AI.

5. Illuvium

Source: gamefi.org

Illuvium is an open-world RPG and auto-battler game built on the Ethereum blockchain. Players capture and battle creatures called Illuvials, each represented as an NFT. 

Of course, there are some risks and challenges along with the innovation. 

Challenges of Blockchain Games:

1. Scalability Issue

Blockchain networks like Ethereum, can experience scalability problems. It leads to slow transaction speeds and high fees during periods of high demand. These issues can result in poor user experience, making the games less accessible, especially for players who cannot afford high transaction fees or are frustrated by delays.

2. Regulatory Issue

The regulatory environment for blockchain and cryptocurrencies is still evolving, with different countries having varying laws regarding digital assets, NFTs, and cryptocurrencies. Developers and players face uncertainty as regulations could change, potentially banning or restricting certain aspects of blockchain gaming, leading to legal challenges or loss of access in certain regions.

3. Knowledge

Blockchain games require users to understand how to manage digital wallets, interact with smart contracts, and navigate decentralized exchanges, which can be complex for new users.

4. Financial Loss

When we are talking about making a profit, we have to keep in mind that Blockchain games often involve using cryptocurrencies or digital assets, which can be highly volatile. Players might invest real money into assets that can depreciate rapidly.

5. Security

Despite blockchain’s inherent security features, smart contracts and decentralized applications (dApps) can have vulnerabilities that hackers might exploit.  Security breaches can lead to significant financial losses for players and developers, such as theft of in-game assets or cryptocurrency, undermining trust in the game and the platform.

But what will be the future of Blockchain Games? Will it stand out in the market? Or will it stay just as a trend?

Future of Blockchain Games: 

Looking to the future, blockchain games play a pivotal role in the evolution of the metaverse, where virtual worlds, economies, and communities will be interconnected on decentralized platforms. The continued development of blockchain games enhanced security measures, and more user-friendly interfaces will further drive adoption. As more players, developers, and investors recognize the potential of blockchain games, this sector is likely to grow rapidly. 

However, it is unlikely that Crypto or Web3 games will completely replace traditional games, as they offer different experiences and target different audiences. However, these games have the potential to create new opportunities and revenue streams for the gaming industry and provide unique gameplay experiences. The future of blockchain games is not just in entertainment but in creating entirely new ecosystems where digital ownership, creativity, and community collaboration thrive.