GameFi needs more quality crypto games

There are many NFT (non-fungible token) games that have emerged in recent years.

The growing number of such crypto games reflects the increasing interest in blockchain-based gaming experiences. Notably, these allow players to own and trade unique, one-of-a-kind digital assets.

However, so far, the limited availability of high-quality products has hindered the adoption of crypto gaming among mainstream users.

GameFi and crypto games

GameFi, short for “Game Finance,” describes the trend of integrating blockchain technology and decentralized finance (DeFi) principles into video games. This has led to new gaming experiences. Moreover, players earn cryptocurrency or other valuable digital assets within the crypto games they play. What’s more, they use those assets to buy in-game items, trade with other players or exchange them for real-world currency.

The GameFi model typically involves creating a blockchain-based ecosystem that connects game developers, players and investors. It also provides a decentralized platform for conducting in-game transactions. 

GameFi represents an exciting new frontier for the gaming industry. Not only that, but it has the potential to create new opportunities for both players and developers.

The growth of GameFi

The growth of GameFi has been significant in recent years. Indeed, many crypto games and platforms that combine gaming and DeFi principles have emerged. Some of the factors that have contributed to the growth of GameFi include:

– The increasing popularity and adoption of blockchain technology has created new opportunities for game developers to create decentralized gaming experiences. These incorporate elements such as cryptocurrency and other digital assets.

– The success of NFT games like CryptoKitties and Axie Infinity has shown that there is a market for blockchain-based gaming. Of course, these crypto games allow players to own and trade unique, one-of-a-kind digital assets.

– The growth of the DeFi ecosystem has created new opportunities for integrating financial transactions into crypto games. For example, allowing players to earn interest on their in-game assets or providing a platform for in-game crowdfunding.

– GameFi has the potential to create new revenue streams for game developers. Specifically, crypto games enable developers to earn a share of the profits from in-game transactions or by selling in-game assets.

The growth of GameFi is expected to continue as more developers and investors explore the potential of this emerging technology.

Issues related to the adoption of crypto games

According to a report by the analytical company Newzoo, there were 3.2 billion gamers in the world in 2022. Out of this huge number, only a tiny fraction of them played crypto games. In fact, DappRadar reports that by December 2022, the number of daily Unique Active Wallets was almost one million.

Additionally, almost two billion gamers are casual players, i.e., they play regularly but for a small amount of time. These players are more attracted by the quality of games rather than by the play-to-earn model. 

In order to attract this huge player segment, both the number and quality of crypto games must be raised. However, based on previous experience, it often takes years to bring the quality of gaming products to a professional level. Mobile crypto games are expected to play a role in drawing in casual gamers.

There are also other factors that might be preventing the players of traditional video games from fully embracing crypto games:

• Many traditional gamers may not be familiar with blockchain technology or the concept of NFTs. Understandably, this can make it difficult to understand the value and benefits of crypto games.
• The process of purchasing and managing cryptocurrency and NFTs can be complex and intimidating for some players. This is especially so for people unfamiliar with the technology, platforms and wallets used to store and trade digital assets.
• Next, the decentralized and often anonymous nature of blockchain technology can create concerns around security and fraud for some players. Such worries typically come from players used to the centralized control and protections of traditional gaming platforms.
• Some crypto games require significant investments of time and money to fully participate and compete. Of course, this can be a barrier for players familiar with traditional games that have lower or no entry costs.
• Finally, players may prefer the gameplay and mechanics of traditional video games over the emerging gameplay of crypto games. Such gameplay often requires a different set of skills and strategies to be successful.

It is worth noting that the integration of NFTs into conventional games has faced resistance from the larger gaming community. As a result, several prominent companies have shelved their plans to adopt them. Despite this, according to experts, this problem will be solved by time, experience and education.

Conclusions

Statistics show that crypto games are still a small part of the gaming market. This is due to several factors. For example, it takes years to bring the quality of the products to a highly professional level.

Fortunately, talent migration from traditional gaming (involving PCs, consoles and the free-to-play model) to blockchain gaming is now in effect. So far, this has been a gradual transition. Nevertheless, its influence on the blockchain gaming industry should lead to the advancement of crypto games. Such games offer more enjoyable gameplay and are also developed using conventional gaming standards.

______

Are you interested? Contact us