The NFT Era Was Just the Beginning, Blockchain Gaming is the Future

The Non-fungible token (NFT) era took the blockchain gaming ecosystem by a storm; this unique digital asset niche was one of the most discussed topics in 2021, with some experts terming it as the future of gaming. 

However, as fate would have it, most of the NFT-oriented games that made headlines at the time are either inactive or lost their appeal. To provide some more context, Axie Infinity’s in-game reward token, Smooth Love Portion (SLP), is currently trading at a 99% discount from its all-time high of $0.3997 at the height of the NFT craze. Meanwhile, God’s Unchained rare cards are down from average prices of around $10,000 to as little as $100. 

This significant drop in the value of NFT gaming assets has not only reduced the allure of blockchain games but also attracted a lot of criticism. Most of the naysayers argue that blockchain gaming is not close to catching up with traditional games or infrastructures for several reasons; subpar gameplays, flawed tokenomics to sustain incentivized economies and too much technicalities, leaving out interested Web2 game developers. 

To some extent, these arguments hold water, but looking at the developments post the NFT hype, it seems like NFTs set the stage for a more disruptive gaming era. 

A New Dawn For Blockchain Gaming

Bear markets are for building in crypto and that’s exactly what innovators and other relevant stakeholders have been doing for the past two years. This section will highlight three major trends that are solidifying blockchain technology as the future of gaming ecosystems. 

Publisher-as-a-Service (PaaS) Web3 Platforms

In the early NFT days, most of the game developers who wanted to create games on the blockchain were limited due to the technical knowledge gap. That’s no longer the case; nascent Web3 gaming platforms such as Functico are leveling the playing field for both Web2 and Web3 developers. 

This full stack chain agnostic Web3 gaming platform is one of the few ecosystems that has gone a step further to offer seamless development tools through its Publisher-as-a-Service (PaaS) infrastructure. The platform features a 360 studio designed to streamline the Web3 game development process, from publishing to creating sustainable reward loops for potential players. 

In addition, Funtico’s PaaS also includes a creator’s studio that allows developers to mint customized NFTs. This simplification is undoubtedly a game changer for many Web2 developers who have long wanted to curate or design blockchain games. With Funtico’s API and SDK integration, anyone can tap into blockchain technology for game development without having to rewrite their ideas from scratch. 

While still a novel concept, the idea of PaaS blockchain gaming infrastructures is a big step towards building a more accommodative environment. The ease of launching games through such platforms could play a huge role, attracting some of the best developers who initially shrugged off blockchain games for the simple reason that they would have to learn from the ground up. 

More Fun Games, Less Speculation!

As mentioned in the introduction, one of the caveats of the early generation blockchain games was flawed tokenomics models. 

Most of the games that debuted between 2020 and 2022 focused on speculative hypes whereby in-game tokens were primarily viewed as tools for wealth accumulation. To make matters worse, these games also had a very poor gameplay hence the high turnover rate. 

Innovators seem to have learned from their mistakes; for starters, the blockchain games being developed today are based on more immersive gameplays. The two leading blockchain games as of writing are all based on immersive gameplays; the World of Dypians (MMORPG) and SERAPH:In The Darkness (action RPG). 

It is also interesting to observe the rise of Telegram’s tap-to-earn games which are proving to be more effective than their tap-to-earn counterparts in onboarding new users to crypto. This niche now enjoys a market cap of $2.2 billion according to Coinmarket, with some games such as Lucky Funatic attracting over 400k monthly users. Other prominent names include Notcoin, Hamster Kombat and Catizen. 

Traditional Game Publishers Joining the Bandwagon

Another affirming trend is the move by traditional gaming studios to develop in-house blockchain-based games or enter into strategic partnerships that place them at the midst of this revolution. A 2023 report by Coingecko revealed that over 70% of biggest gaming firms across the world are in one way or another invested in a blockchain initiative. 

Notable advancements on this front include Epic’s change of content policy which saw the return of play-to-earn games like Gods Unchained to its platform. On the other hand, we have gaming giants such as Konami which launched a blockchain-powered initiative to leverage this tech in its gaming marketplace. 

These moves are a signal of what’s to come; a futuristic gaming industry that will be built on Web3 technology. What’s particularly promising about traditional publishers making a debut is the resource in terms of human and financial capital. Most of these players are not only deep pocketed but have the right talent and development tools to shape the future of gaming. 

Wrap Up

Although NFTs may have not lived up to the hype, their core value proposition is an eye opener to what gaming economies should look like – ecosystems where gamers have the opportunity to truly own in-game assets and actively contribute to development through decentralized autonomous organizations (DAOs). Now that the speculation facade has cleared up, we will likely see more advancements as Web3 takes the center stage in gaming development.