Cryptocurrencies have grown in popularity in recent years, and it appears that everyone wants to get involved in this relatively new field. Blockchain technology has captivated many users across almost every industry, with gaming being the most affected.

This is because there is a significant overlap between blockchain and the gaming community. People who are interested in blockchain technology are often interested in and play video games. The popularity of NFTs demonstrates this point, with many valuable and rare NFTs being traded in video games.

The Current State of Blockchain

Gaming on Mobile Blockchain gaming has been around for a few years. The majority of successful blockchain titles were online games. You're probably wondering why mobile games aren't taking the lead. Isn't it true that they're more popular than online games?

Good questions.

The problem is that there are numerous blockchain mobile games available. However, no breakthrough mobile game has yet to take the throne. What's the reason?

None of these games have addressed the major issues associated with blockchain mobile gaming. Scalability and speed are two of these issues. As a result, major mobile game developers are focusing their efforts on developing high-quality infrastructure before entering the market.

Let’s take a look at how blockchain works in mobile games right now. 

Blockchain Technology and Mobile Game Economies

All mobile game developers want to create profitable in-game economies.

These economies are now fueled by in-app purchases. Players can use real money to purchase items in the game if they want to gain access to premium content or advance faster. They have the option of purchasing these assets directly or using another asset - in-game currency.

All in-game assets in blockchain mobile games are "tokenized."

Consider it this way:

What were once coins are now tokens. To better understand this, consider the physical, tangible tokens. They exist in the game, are owned by players, and can be found in their wallets.

These tokens are built on a blockchain network, giving them their value in addition to the traditional value of the in-game currency. This provides designers with a plethora of design options. Some games have only one token, while others have several.

Players do not own anything in traditional mobile game economies. They simply have the opportunity to rent some of the studio's belongings. However, in the blockchain gaming concept, players own in-game assets, which alters the power dynamic.

IAPs VS Crypto-Based Mobile Games

The app stores take a cut of any in-game purchases made by mobile gamers. As a result, developers lose 15% to 30% of each transaction. More and more developers are attempting to work around this. For example, they could launch their games on new app stores with lower cut rates.

This problem does not exist in crypto-based games.

Because crypto is the payment method here, neither Google nor Apple are required to process the transactions. We're still waiting to see how the app stores handle this situation.

However, another middleman - blockchain platforms - will take a cut of developer revenues. How does that work? What will they accept? We'll notify you when the platforms become available.



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How Do Blockchain Games Work on Mobile?

Starting with blockchain mobile games is a lengthy process. In addition to downloading a blockchain game, players must also install a mobile blockchain wallet. They can store all of their digital assets in it.

Players must currently download these wallets from app stores. This is one of the things that irritates mobile gamers. There is far too much trouble involved. Mobile gamers are accustomed to having everything in one place, and blockchain games are no exception.

The Advantages of Blockchain Gaming for Developers

Blockchain games would not be developed if there were no significant benefits. Let's take a look at a few of these benefits.

Market Development

One of the difficulties for blockchain mobile game developers is the lack of market leaders. At the same time, this is advantageous to them.

The fact is that market leaders can popularize an entire market segment. For example, Candy Crush Saga popularized match-3 games.

Many pioneer blockchain games on the market will be rewarded if such a game appears. This will pique the interest of players in the overall blockchain gaming market, and existing titles will gain new traction.

Furthermore, all market developers can benefit from the fact that this market is expanding. Whether an indie developer or a large studio, they all have the opportunity to create a successful blockchain game.

Super-Active Playerbases

Blockchain players perceive these games very differently than traditional game players. Because of the nature of blockchain games, these players take them very seriously. These are not casual players looking to pass the time.

Blockchain gamers are typically very dedicated to these games and devote a significant amount of time and effort to them. They also make financial investments in pay-to-win games. All of this creates new ways for developers to profit from their players.

Innovative Business Models

Developers of IAP-based games want players to become addicted and spend a lot of money. They frequently rely on aggressive monetization techniques to accomplish this.

Developers can use more innovative ways to make money with blockchain games. Instead of focusing on asset prices, they should consider the creative value of these assets.

When creating in-game assets, developers must consider how their values will rise in the future. In Cryptokitties, for example, this was accomplished by delivering a large number of DNA attributes to the "kittie" NFTs.

According to the players, this does not appear to be an aggressive, money-grabbing strategy. The profits from these games are split between the players and the developers. As a result, players see them as something that will help them make money rather than take it away.



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Blockchain Gaming's challenges

Not everything can or will run smoothly when there is an innovative concept. A few factors are impeding the widespread adoption of blockchain games.

The blockchain trilemma is the main problem that blockchain developers face. This term refers to a decentralization, scalability, and security triangle. Naturally, game developers want all three in their games.

However, they are unable to do so at this time.

They can only choose two of three options right now. The game will be less secure if it is decentralized and fast. However, if it is decentralized and secure, it may not be as fast as they want it to be. 

Scalability refers to how many transactions the system can handle without slowing down. For this reason, it is commonly referred to as speed. 

Traditionally, game economies operate quickly and smoothly. However, because Bitcoin and Ethereum economies are decentralized, they operate at a slower pace than centralized networks.

CryptoKitties, the first successful blockchain game, had a major problem with this. The number of player transactions pushed the Ethereum network to the brink of scalability at one point. This occurred with approximately 100,000 users at the time.

What can we expect from games that have millions of users? We're excited to see how developers overcome these challenges.