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What are Blockchain Games?

Updated: Feb 5


What are Blockchain Games?

Absolutely, blockchain games, in the broadest sense, leverage blockchain technology to empower gamers. This technology grants players full ownership over digital assets, and in certain instances, gamers even play a role in governing the entire game. The spectrum of blockchain games varies widely, but before delving into the nuances, it's crucial to grasp the fundamentals of blockchain technology itself. Understanding how blockchain operates lays the foundation for comprehending the transformative potential it brings to the gaming landscape.


A blockchain is a decentralized computer network that distributes control across its nodes, rather than concentrating power in the hands of a single organization. Unlike traditional networks controlled by entities like Google or Amazon, blockchain relies on contributions from numerous computers worldwide, known as nodes or miners. These contributors earn rewards for their participation, ensuring that no individual can unilaterally shut down the network.


In a conventional network, files can move between computers without thorough verification. In contrast, a blockchain mandates that every data transfer is verified by the entire network. This meticulous validation process is the foundation for the functionality of cryptocurrencies like Bitcoin. Every transaction is approved, confirmed, and recorded by all computers on the network, preventing unauthorized spending.


While Bitcoin is a notable application of blockchain, various projects leverage its principles. Ethereum, prominent in the realm of crypto art and blockchain gaming, is a significant example. Other platforms like Flow, Wax, EOS, and Tron are also discussed in the context of Play to Earn. Additionally, some companies deploy private blockchains for tasks such as product tracking in distribution lines. Despite differing organizational structures, the fundamental principle remains consistent: decentralized governance via a specified protocol, with data transfers and ownership verified by each node in the network, whether public (Ethereum and Bitcoin) or private (IBM Hyperledger). For a more in-depth exploration of Bitcoin and blockchain, you can refer to the YouTube channel of Andreas Antonopoulos.



Games on the Blockchain

Games on the Blockchain

Absolutely, when referring to blockchain games, we are discussing games that leverage blockchain technology for various aspects of their gaming experience. The spectrum ranges from games that solely use the blockchain to store ownership of in-game assets to those that operate their entire virtual world on the blockchain. Between these two extremes, there are different degrees of integration and utilization of blockchain technology within the gaming ecosystem.


Minimal – Ownership Over Game Assets

The game operates on a centralized server, similar to other games on the market. However, players have the option to purchase in-game cosmetics linked to a blockchain token, specifically a non-fungible token (NFT). This implies that exclusive access to the associated digital asset is granted solely to the owner of that particular token. Consequently, one can become the sole proprietor of a digital sword within a role-playing game. The blockchain meticulously records each transaction and token ownership, making it visible to everyone that you are the sole owner of that specific token. The real-world financial value of the token is contingent on the game's popularity and its practical utility within the gaming environment.


Medium – Ownership & Economy contribution

Apart from purchasable NFTs, there's also the potential for users to generate assets directly on the blockchain. For instance, a game could randomly generate a unique sword, and players have the option to acquire it. Once acquired, the item is stored in the user's cryptocurrency wallet linked to the game. Additionally, users may collect resources, package them in-game, and sell these packages to other players through an open marketplace facilitated by blockchain technology. Despite these games still relying on a centralized server, they leverage blockchain technology for the ownership of digital assets, trading, and the generation of unique, randomly generated items.


Maximal – Complete Decentralized Governance

The epitome of a blockchain game incorporates all the elements mentioned earlier, with the added feature of its entire gameplay being built on the blockchain. Every node in the network verifies each player's decision, virtually eliminating the possibility of cheating. However, this also implies that the game developer relinquishes some of the control typically held. There are games existing on established blockchains, and others use a custom blockchain maintained entirely by the players. It essentially represents the ultimate manifestation of self-governance.

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