Axie Infinity turned its game into a billion-dollar economy that helped thousands of gamers in the Philippines and other low-income countries weather the impact of pandemic containment measures. The most important ingredient for success: strong ownership rights.
Players can take game assets out of the game and trade on third party marketplaces such as OpenSea. The freedom to set prices and trade with ease unleashed a veritable tsunami of economic activity inside and outside the game.
Cointelegraph Research’s 30-page report analyzes the top five titles and what’s changed since the Second Life days, and is produced in collaboration with Galaxy Fight Club, The Sandbox, Planetarium, Immutable x, SolaDefy, Decentral Games, X World Games, and Animoca creates brands.
The emergence of a new economy
The report goes deep into the differences between virtual economies of the past like Second Life or World of Warcraft and modern blockchain-based games like Axie Infinity or DeFi Kingdom.
Developing a well-functioning marketplace with in-game currency and open standards for game assets was simply beyond the capabilities of a development studio in the past. But blockchains offer game developers economic building blocks. The technology allows developers to launch a token within an hour or define game materials as non-fungible tokens (NFTs). This gives users strong ownership and the ability to bring their characters and items outside of the games to third-party marketplaces or even into other games with little additional development costs.
Download the full report for free here.
With the advent of DeFi (Decentralized Finance) technology, players have financial opportunities they never had before, which led to the lightning-fast adoption of these games.
The report then compares the top five blockchain game titles Alien Worlds, Axie Infinity, Bomb Crypto, DeFi Kingdom and Splinterlands. Each of these games has different gameplay and offers different incentives to players. Daily active users, transaction volume, deposited funds and gameplay – as well as tokenomics, which represent the economic incentives for the in-game currency – are all compared.
But no report would be complete without covering the dark side of blockchain gaming. Environmental concerns, a sharp divide between the haves and have-nots, legality and tax implications are all legitimate concerns about these new economies. This is especially important as the sheer success of these games makes them more and more attractive to gamers and game developers.
GameFi titles accounted for more than 35% of all Polygon transactions during the peak periods of 2021 and early 2022. But without addressing the potential issues, the long-term viability of the entire blockchain gaming space is at risk as critics and regulators will use these arguments to stall development or make it difficult for players to participate.
Get ready fight!
The report has an optimistic conclusion about the future of blockchain gaming and the potential that will be unlocked by economic freedom. Lower transaction costs, stronger ownership rights and open standards are all working together to disrupt the planned economies of previous gaming markets.
Blockchain technology opens up a world of new possibilities for developers and gamers. If environmental and regulatory concerns can be addressed, 2022 will be GameFi’s best year yet.
This article is for informational purposes only and does not constitute investment advice, investment analysis or a solicitation to buy or sell any financial instrument. In particular, the document does not serve as a substitute for individual investment or other advice.
https://cointelegraph.com/news/how-blockchain-games-create-entire-economies-on-top-of-their-gameplay-report How blockchain games are creating entire economies in addition to their gameplay: report