How blockchain is revolutionising video gaming – and turning players into millionaires

THURSDAY, January 06, 2022

THE NATION

Most of us are familiar with video games, but less well known is that you can also play games on the Blockchain network behind cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE).

So, what makes blockchain games special?

Many video games feature items that players can trade for real currency via a middleman system.

However, items in blockchain games have real value and can be directly traded between players.

How are items in blockchain games given value?

Three technologies allow players to trade valuable items freely:

Blockchain technology allows trading on the internet without a middleman while also being safe, transparent and reliable.
The smart-contract system allows developers to create blockchain financial applications or services including exchanges, loans, auctions, fundraising, etc.
Non-fungible tokens (NFTs) are a unique digital asset of differing value that can be tagged to collectibles, artworks, appliances, and in-game items.

An in-game item can be replaced by an NFT to make it unique. Rules on receiving and exchanging items in blockchain games are set by smart contract technology.

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Meanwhile data including the number of items and smart contract conditions is stored transparently on the blockchain network for everyone to check.

The value of items is governed by different factors but usually depends on the item’s rarity and the game’s popularity.

Which games are popular worldwide?

1.CryptoKitties

Cryptokitties is a blockchain game developed on the Ethereum network.

Players use their ETH cryptocurrency to buy cats, which become digital assets as NFT. Players then breed cats to create new creatures with faces, colours and other features inherited from the parents. Players can collect the cats or put them up for auction.

Among the game’s highest valued cats is Nana Meanbutt, worth US$154,632 (over 5 million baht) according to Coinranking on July 2, 2021.

2. Axie Infinity

Axie Infinity published by Ubisoft has gained a strong following across the globe.

Inspired by Pokémon, the game sees players collect versions of the monster Axie, each with different traits and characteristics.

Players can then fight duels with their Axie NFTs or sell them on the market.

An Axie named Angel was sold for 300 ETH or about 4 million baht in November 2020.

3. Decentraland

Decentraland was developed on the Ethereum network with a currency called MANA coin.

Players edit their avatars and use MANA coins to buy in-game items or land. Players can also join conversations and activities with others.

According to the Business Times, the most expensive item on Decentraland is 16 acres of land bought by NFT investors Republic Realm for 1.295 million MANA coins or $913,228 (about 30 million baht).

4. Morning Moon Village

The first game created by Thailand’s Extend Interactive or x10, Morning Moon Village was developed on the Bitkub network and funded by Bitkub Ventures Co Ltd.

Players farm to receive rewards and go on adventures to find rare NFTs to use or sell on the market.