Blockchain Games Are Catching On – Here’s A Look At The Pros And The Cons

Although they represent two distinct technologies, blockchain and cryptocurrency are inextricably linked to each other. On one hand, blockchain is the technology that serves as the foundation for digital currencies. The fact that people today can buy Bitcoin with a debit card and all of the benefits that crypto provides have been made possible by the emergence of blockchain. On the other hand, the rapid development of the crypto industry has fueled the growth of blockchain technology, causing it to expand its applications beyond the sphere of financial services. 

This expansion has ultimately led blockchain to enter the gaming industry where it has given rise to a new subgenre commonly known as crypto or blockchain games. These games come in many forms, with different architecture and features. In some cases, the game’s entire infrastructure is based on blockchain technology. Other times, only the game’s economy is powered by blockchain, allowing players to earn, collect or trade digital assets. 

In a way, the fusion of blockchain with video games seems quite natural given that both technologies have a strong focus on innovation, employ digital items and include elements of gamification to varying degrees. Therefore, it’s no surprise that crypto games have experienced a surge in popularity in recent years, especially those that use the play-to-earn (P2E) model, such as CryptoKitties, Axie Infinity, The Sandbox, or Gods Unchained. With P2E games, players can turn their favorite pastime into a lucrative activity and thus boost their income.    

But are these new-generation games all they’re cracked up to be? There’s certainly a lot of buzz around them at the moment, but the current hype is just one part of the story. Just because everyone seems to be enthralled with blockchain games right now doesn’t mean there are no negatives to take into account. So, if you want to gain a more balanced understanding of crypto games, you should start by examining both the pros and the cons. 

The Pros

Let’s start our explorations on a positive note and take a look at the pros first. One of the main advantages that crypto games provide is asset ownership. In a traditional game, despite investing time and effort into acquiring items or experience, players don’t own any of these assets. Everything they own or do resides on a server that is owned by the gaming company. 

By comparison, crypto games flip the script by introducing a different approach to asset ownership. Blockchain technology gives every player the possibility to safely store their assets on a decentralized public ledger, meaning that no third party can access or use them. This gives players full ownership of their in-game assets, be it characters, tools, weapons, skins, land or other type of property within the game realm. 

Apart from providing control and ownership of assets, crypto games also ensure interoperability. Given that blockchain networks can interact and communicate with each other, players are not limited to one gaming realm. They can move and use their assets across different platforms that are compatible with each other and thus enjoy a richer and broader gaming experience. 

When it comes to fairness and security, crypto games don’t disappoint either. The blockchain serves as an immutable database by design, ensuring that the activity recorded on it cannot be deleted or altered in any way. Users can rest assured that no one can interfere with the game’s outcome. What’s more, since the records kept on a blockchain are secured by cryptography, players also benefit from enhanced data security and privacy.  

Decentralization also comes with the added benefit of censorship resistance. With crypto games, there’s no single entity that controls the game infrastructure, as it’s the case with conventional video games. This means players get to enjoy free access to their favorite games and they can also actively contribute to their development. 

As a direct consequence, crypto games are superior to traditional games in terms of infrastructure maintenance as they require zero upkeep. The blockchain ensures that everything runs optimally, so there’s no need for developers to put any effort into it. Whereas for conventional games, there’s a lot of work going on behind the scenes to keep the servers up and running. 

Last but not least, blockchain games give people the possibility to earn digital assets while they play. They’re perfect for those who are passionate about crypto and gaming or for those who are looking for a simple and fun way to ease into crypto. 

The Cons

All of the advantages listed above make crypto games sound like they’re too good to be true. Well, they do provide some major perks for gamers and crypto enthusiasts alike, but there are also caveats to keep in mind before you dive in. Crypto games are still in their early stages and there are certain aspects that may interfere with your gaming experience. 

For starters, you may have to pay a fee to get into the game. While that wouldn’t be a huge drawback, fees also tend to fluctuate based on changes in crypto value. As a result, there may be delays in processing transactions, causing the network to run slowly or become unresponsive. 

Even if the game platform works smoothly, there’s still the issue of insufficient players to compete against. Despite their rising popularity, crypto games haven’t been around for long enough to amass a large number of followers. Also, there’s a limited collection of crypto games that players can choose from, and not enough information on how to play them, leading to a sub-optimal gaming experience. The relatively low number of active players can also lead to poor liquidity and insufficient trading options for users. 

And let’s not forget about the security concerns. Crypto games are often targeted by hackers and other malicious entities looking to get their hands on the assets that reside on these networks. Users who engage in these activities need to be aware of the risks they expose themselves to.   

Final Thoughts

There’s no denying that blockchain gaming is a very promising niche that continues to attract an increasing number of players. However, the success of these games will largely depend on what weighs heavier in the balance: the pros or the cons.