Crypto Gaming Promises You Wealth, But Reality Is Different

Totally trending that crypto gaming and it is seen as the future. But what are the snags?

Games on the blockhain, that’s basically it. Crypto gaming is sold with the promise of convenience and wealth. But in practice it can turn out differently. Video games increasingly contain blockchains. These are the decentralized databases that underpin cryptocurrencies. New games are appearing expressly to support blockchain technology while traditional games are being updated to include blockchains.

crypto gaming

We should not underestimate it either. It is growing and is taking on enormous proportions. As of October 2021, “crypto gaming” accounted for more than half of blockchain activity in that quarter. Crypto evangelists say blockchains are the future of gaming. And that crypto gaming will usher in “Web3”. This is the so-called next iteration of the internet built on blockchain technology.

The advent of crypto gaming roughly coincides with the rise of the Ethereum blockchain, launched in 2015. Ethereum emerged as a platform for building and hosting decentralized apps. As well as ownership of digital assets within those apps. Video games have a history of advanced virtual economies.

Value retention

A common model in crypto gaming is to incorporate two types of crypto tokens. One is a governance token. It generally allows players to have a say in the governance of a game and, in some cases, a share of its revenue. The other is a utility token, which is used to perform certain actions in the game.

Game assets, such as a sword, can also take the form of non-replaceable tokens (NFTs), with each unique token represented on the blockchain. It is common for NFTs and governance tokens to double as speculative assets sold through crypto or NFT exchanges. But the question is whether they have any fundamental value. Many game tokens are volatile at best and worthless at worst. In that case, only the developers will benefit.