Games

Axie Infinity is toxic for crypto gaming

Axie Infinity, like most cryptocurrency games, has provided players with an awful experience.

Blockchain gaming is only four years old — a toddler compared to the rest of the industry. It has a lot of growing up to do, particularly when it comes to play-to-earn games.

I’m a 28-year game industry veteran. I’ve produced 32 titles in that period of time on everything from Sega Genesis to Oculus Rift. Some of them were great. Many were forgettable. I didn’t hear much chatter about blockchain gaming from traditional developers and players until Axie Infinity began to take off. Cut to the peak of 2021, and the game had nearly 2 million players logging on daily.

Most people outside the crypto community at the time were (and still are) extremely skeptical about blockchain’s ability to add anything meaningful to games. They see Axie as an example of the low production values and rampant speculation they want to avoid at all costs. Moreso, they see blockchain as a continuation of overreach by publishers. However, in 2021, many believed Axie would prove blockchain gaming skeptics wrong.

It didn’t. Axie and most other crypto “games” to date have been awful experiences. They aren’t even really games. They’re more like digital sharecropping, rich NFT owners exploiting low-wage earning players. It’s shallow gameplay layered on a tokenomics model. This was highlighted most recently in October, when Axie’s SLP token plummeted in value as a result of an impending token unlock.

Related: Crypto gaming needs to be fun to be successful — Money doesn’t matter

Most players sell their tokens on the crypto market rather than in the game, meaning token numbers increase and cause a sort of crypto inflation. The game model relies on a constant inflow of new players to sustain it — something this month has shown to be very much not guaranteed.

Axie’s value is primarily driven by this speculation rather than fun. The game, if it can even be called that, is literally a grind. Despite attempts to separate it from game economy reliance with iterations like Axie Origins, the toxic model of being hyper-dependent on tokenomics prevails. This continues to detract from projects that are trying to make fun games that utilize blockchain to enhance player experience.

At the peak of its popularity, the team behind Axie arrogantly claimed that they were “freeing” players and enabling a world in which work and play merge. But the game’s decline following the massive $620 million hack on customer funds in March showed how hollow this language was. Axie creator Sky Mavis flip-flopped from the play-to-earn narrative towards a play-and-earn ethos, clearly aware that the game wasn’t going to deliver on its mission.

For blockchain gaming to succeed, developers need to focus on awesome game design instead of trying to prop up their tokens. During an increasingly difficult global economic climate, even mainstream gaming is struggling. But those games that are doing well despite market sentiment are AAA titles like God of War Ragnarök and the latest Call of Duty, which have exciting lore and awesome gameplay.

The ability for players to spend time creating things that people will love in terms of stickers, skins and weapons — while being able to monetize them — is key. People need an outlet where they can be creative and put together content that generates interest and emotion with a community that loves playing the game.

If we are to turn the tide on the perception of blockchain gaming, we need to show how it can benefit gamers. Moving beyond words and actually demonstrating that it enhances gameplay and utility. Blockchain can do incredible things as a backend infrastructure, such as enabling players to truly own in-game items, prove attribution and the history of their weapons and loot, and get rewarded for their in-game creations.

Related: The reason bots dominate crypto gaming? Cash-grubbing developers incentivize them

Part of Vitalik Buterin’s drive to innovate with blockchain was driven by his distress when he lost a spell’s abilities in World of Warcraft overnight as a result of centralized control of the game. Blockchain ultimately restores true ownership of in-game features to players, meaning that they own them, even if changes occur in a game or it goes under.

This asset ownership can extend into many areas. Right now, Microsoft and Sony let you capture video of your in-game activity and then post it to social media, but you don’t really own how it’s monetized. You’re locked into YouTube monetization. With blockchain, players could capture in-game moments, memorialize them as NFTs and then allow people to buy/sell them as they see fit. By updating gaming infrastructure and enabling new innovation, real-time integration of players into the creative process can also take place, which is rarely seen in the industry.

Players want involvement in the creation of the games. They don’t want to be manipulated into paying more. Studios need to prioritize gameplay, rich graphics, and compelling narratives to bring players on board. The blockchain games that become successful will be the ones where players don’t even know there’s a blockchain operating in the background.

Deception and speculative frenzies have been the central features of the wider crypto market this year. So bringing players on board is going to be that much harder. Studios will have to go the extra mile to demonstrate to players that blockchain gaming can achieve the security, fun, and adrenaline-pumping action that defines the games they love.

Mark Long is the CEO of Shrapnel, a blockchain-enabled moddable AAA first-person shooter game. He graduated from the University of Texas at Austin with a BS in computer science before attending an executive education program at the Wharton School. He previously served as a director with HBO’s digital products group; as a group program manager at Microsoft; and as the CEO of companies including Aristia, Meteor Entertainment, and Zombie Studios.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Fenix Games raises $150M to fuel next-generation blockchain gaming

Chris Ko, CEO and co-founder of Fenix Games, considers Fenix Games “like a VC fund” for powering the next generation of blockchain games.

Web3 game publisher Fenix Games raised $150 million in funding to acquire, invest and distribute blockchain games. The fund will be used to create a game publishing company specifically for mainstreaming blockchain games.

Fenix Games’ latest funding round saw participation from investors, including Phoenix Group and Dubai-based venture capital firm Cypher Capital, reported local news media Jinse. Chris Ko, CEO and co-founder of Fenix Games, who previously led Mythical Games, considers Fenix Games “like a VC fund” for fueling the next generation of blockchain games.

Sharing details into the post-funding gameplan, Ko stated:

“We’re actually going to start off with a huge base of capital to invest in those (next-generation gaming) studios. We’re also looking to use our balance sheet to acquire a bunch of existing games in the Web2 space to build a portfolio.”

Ko also highlighted that the market for blockchain gaming does not exist as it did for traditional video games such as gaming consoles and mobile gaming. Fenix Games’ strategy going forward is to develop the gaming ecosystem through publishing initiatives.

Related: Crypto gaming needs to be fun to be successful — Money doesn’t matter

GameFi’s constantly evolving model could make “today’s AAA game companies look like peanuts,” said Jack O’Holleran, CEO of Skale, a multichain Ethereum-native network that powers Web3 games.

Finding a sustainable GameFi model, however, remains a challenge. User experience ranks amid the top struggles in the industry owing to high gas fees and technical complexity around buying, owning and trading nonfungible tokens (NFTs).

The rise of mobile gaming shared a lot in common with crypto gaming

Mobile gaming had an ample number of skeptics during its early days, but today it dominates 60% of the gaming market. Crypto games are following a similar path.

Over the last decade, mobile gaming has become a consequential pillar of the interactive entertainment market. Thanks to access to smartphones, users the world over have been brought into the sphere of hardcore gamers. Now, the emergence of blockchain technology is creating a paradigm shift, offering players the ability to both truly own the assets they earn or buy in-game and the capacity to generate tangible value from their time spent playing.

There are many opportunities that this new model can offer, but today, most of the projects available simply don’t live up to their legacy counterparts. This has led to many doubting that this new generation of games can penetrate mainstream interest. However, this may be short-sighted. Indeed, it’s not the first time a new technology has been dismissed based on its earliest examples.

Blockchain gaming’s growing pains

Web3 games incorporate decentralized blockchain elements, including smart contracts and nonfungible tokens (NFTs), to create virtual assets that can be verifiably owned and traded by players without the intervention of a third party. This innovation puts a high degree of power back into players’ hands. That said, the crypto gaming space is still nascent, and many early offerings have been described as overly simplistic and derivative without offering new or compelling gameplay experiences.

As a result, many self-proclaimed gamers want little to do with NFT games based on a perceived lack of depth and over-emphasis on financial gain. Dubbed “play-to-earn,” or P2E, these products offer the chance for players to earn real value in the form of cryptocurrency and NFTs, which can then be sold for fiat currency. One of the most prominent examples of a P2E game is Axie Infinity, which made headlines when it became a meaningful source of income for many around the world during the COVID-19 pandemic, only to eventually become unprofitable as bear market conditions kicked in and earning potential nosedived.

Related: GameFi developers could be facing big fines and hard time

This is, unfortunately, the case with many similar Web3 games. Not built to withstand the test of time — or major economic shocks — many Web3 titles have failed to galvanize their fanbase without their once-lucrative financial boons. This has led to many detractors of the blockchain gaming genre who assume that current offerings are the zenith of what’s possible, with the sector dismissed as a fad as a consequence. However, glancing at the recent past — particularly the monolithic rise of mobile gaming — demonstrates that the earliest products should not define future potential.

The mobile gaming parallel

If you looked at gaming on mobile devices circa 2005, the situation would be similarly droll. Titles were overly simple, often difficult to control and lackluster in the graphics department. The classic game Snake was among the most popular early mobile titles when Nokia ported it to its line of mobile phones, with millions playing worldwide. At that point in history, anybody using their phone for gaming could only be called a casual gamer, and a similar story emerged as what we are seeing today.

Related: 90% of GameFi projects are ruining the industry’s reputation

Many looked at gaming on cellphones as a novelty for casual gamers that could never compete with the offerings available on consoles and desktops. Fast forward to today, and titles like Fortnite and Arena of Valor have become immensely popular with hardcore gamers and have even influenced the broader gaming industry. These days, nobody would say mobile gaming isn’t in league with legacy offerings, as the technology has evolved to make the differences more superficial.

Global consumer spending on gaming by device group. Source: data.i & IDC.

In fact, as of 2022, 60% of the gaming market is dominated by mobile. It is now the largest branch of gaming worldwide. While traditional gaming platforms still exist and perform well, mobile has shown how new technology can change an entire industry narrative when it comes of age. And to hammer the point home, Snake didn’t define what mobile would become.

The future of crypto gaming

Regardless of how you feel about the approach and success of P2E games, it’s clear this metric shouldn’t be used to judge the future viability of Web3 gaming. New generations of games that will take legacy titles to task are already in the works. Some of these games still have P2E elements, and others implement NFTs; but importantly, the industry is learning that games need to go beyond financial compensation and introduce genuinely engaging gameplay to attract and retain players.

While many currently use Web3, P2E and blockchain gaming interchangeably, they aren’t all exactly the same. In the coming years, these branches may further differentiate from each other and even spawn new subcategories of how this technology is implemented. Assuming all future offerings will be largely similar fails to see the diversity that has emerged in the mobile market.

Only time will tell what becomes of Web3, but those betting against it may want to think twice. There are many parallels between the rise of mobile gaming and what we see now. What killer apps may break open the scene to a larger audience remains to be seen, but in 10 years, it’s likely that these types of titles will simply exist alongside their home console and mobile brethren.

Justin Hulog is the chief studio officer at Immutable Games Studio. Previously, he worked for Riot Games on successful titles, including Valorant, Wild Rift and League of Legends. Justin graduated from Columbia University with a degree in comparative literature.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Heroic Story secures $6 million to build Web3 tabletop RPG world

The seed round was led by Upfront Ventures with participation from Multicoin Capital and Polygon Technology.

Web3 gaming protocol Heroic Story raised $6 million in a seed round led by Upfront Ventures with participation from Multicoin Capital and Polygon Technology, the company announced on Nov. 17.

The funds will be used to hire talent, market the live beta and develop on-chain technology for a massively multiplayer role-playing game (RPG) world, the company told Cointelegraph. The round brings Heroic Story’s total financing to $7.4 million.

Other investors included strategic angels, such as a16z Games Fund One founding investor Jonathan Lai, Team Liquid CEO Steve Arhancet and Quantstamp CEO Richard Ma, alongside Miramax head of film Wolfgang Hammer and screenwriting duo Ryan and Kaz Firpo, who are cousins and co-writers of Marvel’s Eternals.

“We fell in love with the vision for Heroic Story because they are building authentic online RPG experiences for large, global audiences passionate about the tabletop RPG genre,” said Mark Suster, managing partner at Upfront Ventures.

Previous investors in the gaming company include Transcend Fund, Twitch co-founder Kevin Lin, Kabam co-founder Holly Liu and Thirdweb CEO Furqan Rydhan.

Related: AAA gaming companies will look like peanuts as GameFi evolves — Skale CEO

Founded in 2019 at Y Combinator, the company offers multiplayer versions of popular tabletop role-playing games, or TTRPGs, combining storytelling and technology in immersive experiences for players.

“The intersection of storytelling and technology has been the theme of my career, from my early years as a top online poker pro and entrepreneur, to designing and directing one of the first adventure games for consumer VR,” said Jay Rosenkrantz, CEO of Heroic Story, adding that “smart contract powered platforms will transform gaming, storytelling, and community building.”

The company’s first game franchise, Legends of Fortunata, was released in 2021 with an immersive game experience that the company says “eliminates the pain points of playing traditional tabletop games online, with no stress scheduling and an exciting virtual rewards system designed to broaden the reach and appeal of TTRPG to new audiences.”

The market capitalization of blockchain games was around $25 billion at the start of 2022. The gaming experience is one of the main challenges blockchain-based games face.

Inaugural Gam3 Awards to honor the best Web3 games of 2022

Following the announcement, a representative confirmed that the venture capital firm Bitkraft would also be joining as a partner and member of the jury.

The inaugural edition of the Gam3 Awards — a new Web3 gaming awards event hosted by Polkastarter Gaming — is set to take place on Dec. 15, according to an announcement provided to Cointelegraph on Nov. 14.

The awards ceremony intends to recognize this year’s best Web3 games, highlight the developers behind them, and showcase blockchain as a net plus to the gaming industry. In the announcement, the Gam3 Awards said it hopes to celebrate the future generation of Web3-gaming builders by inviting game studios to nominate and recognize their own employees, developers and professionals across specializations who represent the future of Web3 gaming.

The event is set to be simultaneously broadcast across Polkastarter Gaming’s Twitch, YouTube and Twitter channels and will feature a jury comprising over 30 gaming and Web3 thought leaders, ecosystem partners and media outlets. Winners of the first Gam3 Awards will receive a portion of the $300,000 worth of prizes from sponsors such as ImmutableX, Blockchain Game Alliance, Machinations, Naavik and Ultra.

The event is set to bring together industry leaders, ecosystems and media outlets to reward the top game developers and content creators within the Web3 gaming ecosystem. Speaking with Cointelegraph, a representative confirmed that the venture capital firm Bitkraft would also be joining as a partner and member of the jury.

Judges will weigh each game based on multiple criteria including core loop, graphics, accessibility, replayability factor, fun elements and overall playing experience. Winners will be awarded based on categories such as “action game,” “mobile game,” “adventure game,” “casual game,” “RPG,” “shooter game,” “graphics,” “strategy game,” “card game,” etc.

Related: Crypto gaming needs to be fun to be successful — Money doesn’t matter

Despite the continuing bear market, Web3 and blockchain-based games appear to be growing in popularity and doing quite well. According to the analytical service DappRadar, blockchain games and metaverse projects raised $1.3 billion in the third quarter of 2022. The company’s research revealed that “gaming activity accounted for almost half of all blockchain activity tracked by DappRadar across 50 networks, with 912,000 daily Unique Active Wallets (UAW) interacting with games’ smart contracts in September.”

AAA gaming companies will look like peanuts as GameFi evolves: Skale CEO

Finding a sustainable GameFi model is still challenging, as user experience ranks at the top of industry concerns.

GameFi’s constantly evolving model could make “today’s AAA game companies look like peanuts,” said Jack O’Holleran, CEO of Skale, a multichain Ethereum-native network that powers Web3 games. In fact, blockchain-based games and metaverse projects are showing resilience amid a winter that has dragged down many players in the crypto industry, with $1.3 billion raised in the last quarter, as reported by DappRadar. 

Finding a sustainable GameFi model, however, remains a challenge. User experience ranks amid the top struggles in the industry, mainly because of gas fees and the complexity of buying, owning and trading NFTs. “Charging users fees every time they transact or trigger a smart contract creates a disincentive to play,” noted O’Holleran, adding that “in order to appeal to the mass market, there’s a ton of work that needs to be done around usability.”

Despite usability challenges, Web3 games accounted for nearly half of blockchain activity across 50 networks in the last quarter, according to DappRadar, with 912,000 daily Unique Active Wallets interacting with games’ smart contracts in September only.

Most common in-game business models include play-to-earn (P2E), which allows players to earn rewards such as tokens and nonfungible tokens (NFTs), and play-to-own (P2O), which is a more detailed version of P2E, providing players with proof of ownership of rewards for peer-to-peer trading. A recent analysis from Absolute Reports projects massive growth for GameFi within the next six years, with P2E games estimated to achieve $2.8 billion between 2022 and 2028, a compound annual growth rate of 20.4%.

“We’re witnessing the birth of many different economies with different distribution mechanisms as well as the development of different token models (single token, two-token, NFT-driven, etc.). Only time will tell how suitable and reliable each of these will be over the long term in open global markets,” Delphi Digital research analyst Sonny Tsiopani told Cointelegraph.

Related: Decentralized gaming IDs provide another avenue of interoperability in Web3

While crypto gaming companies are becoming more prominent in the industry, some studios are taking cues from AAA games — high-budget, high-profile games produced and distributed by large publishers — to improve usability.

Gunzilla Games, a game studio founded in 2020, combines AAA content with blockchain under the hood, allowing players to access full character and weapon customization through owning the assets as NFTs within the game.

“All blockchain-related features will reside in the background, meaning gamers will never need to set up any wallets, swap any tokens, or perform any of the ‘usual’ crypto-related tasks,” Vlad Korolev, co-founder and CEO of Gunzilla, told Cointelegraph, with regard to how the company is working on gaming experience. He also noted:

“We see GameFi is at a critical crossroads. On one hand, GameFi has the incredibly unique ability to attract the next 1 billion users to the crypto space (given how many gamers there are worldwide). On the other hand, gamification does not cater to traditional gamers and focuses heavily on just the blockchain and the play-to-earn aspect of gaming.”

Improving gamers’ experience may also mean a shift from the revenue model for many companies in the space, as free transactions could boost adoption among traditional gamers. “Web3 has been focused on the DeFi, where users can absorb the cost of a transaction directly. That’s in contrast to a game where even at 5 cents per transaction, it’s simply not acceptable as even simple games would be instantly cost prohibitive,” commented O’Holleran. 

The market capitalization of blockchain games was around $25 billion at the start of 2022.

90% of GameFi projects are ruining the industry’s reputation

Too many projects are releasing over-hyped trailers that they can’t match with gameplay.

The GameFi industry is set to unleash its massive potential within the next six years. According to Absolute Reports data, its estimated value will grow to $2.8 billion by 2028, with a compound annual growth rate of 20.4% in the same period.

It’s a quieter and perhaps less scandalous branch compared to the more newsworthy centralized finance (CeFi) and decentralized finance (DeFi) spaces, but this hasn’t impacted its force nor its promise. Even in the depth of a bear market, crypto gaming has proven to be the most resilient compared to other market sectors. 

However, there is a problem with the GameFi industry: The difference in quality between teaser trailers and delivered products is often stark enough to get under the skin of the eager gamers who put their faith in them. As that becomes the case with more and more titles, the entire industry suffers.

The more that customers’ expectations are unmet and disappointed, the further mass adoption slips further from our reach. Developers must work on what they can actually build, not overpromise and underdeliver. And, we just don’t see that as often as we should.

This pain point is not insignificant. Gaming doesn’t exist in a bubble, but rather it’s increasingly a convergence point where Web2 and Web3 meet and develop innovative ways to integrate one reality with the other. The likes of Animoca Brands went as far as saying that “the gaming industry is closer to a metaverse than any other” and “GameFi could become an onboarding point for metaverse and introduce people to digital ownership.”

Related: Japan is losing its place as the world’s gaming capital because of crypto hostility

Well, since GameFi plays such an important role in the advent of Web3, is it too much to ask that it starts protecting its reputation?

The play-to-earn nonfungible token (NFT) game industry is still a relatively nascent one, with no doubt that the future of blockchain-based games holds many exciting AAA titles, but from today’s standpoint, all we see is visually stunning, overdone and inflated teasers that developers just seem to not be able to build.

In theory, it should not be such an uphill battle. At Murasaki of BCG studio, developers have been working on more than 30 mobile game titles, but they always know roughly how long and how much it takes to build each one. It’s not rocket science: if something like Genshin Impact costs $200m to produce and took over two years to build, how can you say you’re working on an AAA title with only $4 million or even $50 million and it’s going to be ready within a few months? It’s just unrealistic.

The standard development and release schedule is the same for everyone: publish a white paper with a clear blueprint of the work developers are setting out to do, release a teaser trailer to ramp up the excitement, raise funds by selling NFTs and tokens for development and, finally, start developing. Somehow, for 90% of GameFi projects, something happens between the trailer release and the development phase that causes games to look amateur-ish and disappointing.

I’m not the only one criticizing Pixelmon and its somewhat depressing NFT drop — one user even tweeted, “Thanks @Pixelmon, worst mint of my life!! I’m quitting NFTs.” When comparing the project roadmap, which had promised “the largest and highest quality game the NFT space has ever seen,” to the actual product Pixelmon released, which looked nothing like the slick demo they’d created anticipation with only a few months prior, it’s easy to see why people would be disappointed.

Think of it like this: it’s like selling the ownership of a building by showing a 1/100 scale mock of the building but omitting how long it’s going to take to build and refusing to say how much money you’re willing to spend along the way. Then, when you finally reveal what you’ve been working on, instead of a skyscraper, it’s a shed.

Related: GameFi developers could be facing big fines and hard time

But, how long can that continue before users get too disillusioned with the space as a whole and end up quitting it before it’s had a chance to reach its full potential?

It may sound harsh, but the simple truth is that if you can’t deliver what you promised, you should let others do it. 99% of developers have been overpromising and under-delivering consistently — they’re making the rest of us honest and eager GameFi enthusiasts look bad and risking our industry’s reputation, and for what?

Such projects should get out of the space entirely and give GameFi a chance to redeem itself before users get tired of the charade. The stakes are too high to let them play with the future of GameFi any longer, or the dream of mass adoption will slip further and further from us and never turn into our reality.

Shinnosuke “Shin” Murata is the founder of blockchain games developer Murasaki. He joined Japanese conglomerate Mitsui & Co.in 2014, doing automotive finance and trading in Malaysia, Venezuela and Bolivia. He left Mitsui to join a second-year startup called Jiraffe as the company’s first sales representative and later joined STVV, a Belgian football club, as its chief operating officer and assisted the club with creating a community token. He founded Murasaki in the Netherlands in 2019.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Traditional firms likely won’t be leading the charge in the next generation of Web3 games — WAX CEO

“I actually think the first big games that have multimillion persistent users daily — those will come from new startup studios,” said William Quigley.

Traditional ideas about gaming, coming from both the firms developing the games and the players themselves, could slow down adoption of Web3 games, according to WAX co-founder and CEO William Quigley. 

Speaking to Cointelegraph at a Web Summit panel in Portugal on Nov. 3, Quigley said “trying to build a video game using a blockchain is a pain in the ass,” clarifying that many of the products on the market are based on browsers but utilize in-game digital assets on the blockchain. The WAX CEO added that nonfungible tokens, or NFTs, had given independent developers an edge in gaming, allowing them to conduct presales and raise needed funds.

“For the most part, the people who are building [blockchain-based games] today are independent game developers,” said Quigley. “Big, triple-A title video game companies haven’t yet embraced it, and probably for good reason — they’re not sure what the revenue model’s going to be; they’re not sure how it’s going to change their game.”

He added:

“I actually think the first big games that have multimillion persistent users daily — those will come from new startup studios. I doubt they will come from the traditional video game market.”

WAX co-founder and CEO William Quigley speaking at Web Summit

Also on the Web Summit panel, Gamee co-founder and CEO Bozena Rezab said NFT pre-sales may offer some benefits, but held the potential to “trap” developers by putting them in a binding relationship with gamers looking for a certain product. Quigley said that many traditional gamers “cannot stand NFTs” for “pollut[ing] the game play” — something that could slow down companies looking to adopt blockchain-based games.

“The biggest sort of new thing on the horizon that could allow blockchain-based games to take off would be augmented reality, virtual reality,” said Quigley. “When that happens I suspect the principal revenue model for AR, VR games is going to be something like a tradeable item, an NFT or whatever we’ll call it. That, I think, will be the next big bump up in users.”

Related: Blockchain games and metaverse projects raised $1.3B in Q3: DappRadar

As the crypto and blockchain space continues to grow, ​​so too have the number of options available to users interested in having the technology integrated into their favorite games. SupraOracles reported the market capitalization of the 5 most used in-game tokens was roughly $25 billion in February, with the total gaming market predicted to reach more than $583 billion by 2030.

Decentralized gaming IDs provide another avenue of interoperability in Web3

The Lens Protocol and Laguna Games launched a new gaming ID, which connects users across multiple games.

Nonfungible token (NFT) gaming is getting a facelift. A new collaboration between Laguna Games, a Web3 game development and R&D studio, and Lens Protocol allows players to connect across multiple gaming experiences.

These new decentralized gaming IDs will allow players to connect their profiles across Crypto Unicorn’s web and mobile NFT gaming platforms.

The Lens integration is a binder that takes profiles on its network and connects them with the avatar system behind Crypto Unicorns. This opens up new avenues for logging in to games and accessing leaderboards, along with benefits and rewards in the ecosystem.

Aron Beierschmitt, CEO and co-founder of Laguna Games, said this is a way to unsilo identity systems within gaming franchise ecosystems, adding:

“We will branch off an existing ecosystem to maximize the benefits to our player community.”

Lens Protocol founder Stani Kulechov says this integration will benefit users on both platforms, as it allows players to “move seamlessly and securely between platforms using one identity.”

Related: NFT games are ‘only scratching the surface’ of what’s possible — Animoca’s Yat Siu

In the Web3 world, interoperability is a key component of ever-expanding blockchain ecosystems, especially as they fill out with more utilities and applications.

The term interoperability is often heard in the context of maneuvering among blockchain networks. However, as Web3 applications multiply, there is a greater need for interoperability in other areas of the space, including gaming.

Gaming in the Web3 space has been heralded as a major entrance for mass adoption and as an example of utility for ownership through NFTs.

It is also one of the areas in the space that is receiving attention from investors. According to a DappRadar Q3 report, blockchain games and metaverse projects raised $1.3 billion from July to September of this year.

Recently the Web3 infrastructure firm ChainSafe raised $18.75 million as the company pivots its focus toward GameFi development.

Blockchain gaming adoption means more options for gamers

Blockchain games are cropping up across various genres, giving games options for what they can play.

Over the past couple of years, games that use blockchain technology have increased their presence in the gaming industry.

While there were early examples like CryptoKitties — launched in 2017 — the trend has truly gained steam, with major gaming studios even exploring the technology.

At the beginning of 2022, the market capitalization of blockchain games was around $25 billion and it doesn’t seem to be decreasing anytime soon, even in the depths of a bear market. According to the analytical service DappRadar, the two most stable areas this year in the cryptocurrency market are blockchain games and nonfungible tokens (NFT), which have recently become very tightly intertwined, creating a new economic phenomenon.

A striking example here is the well-known game Axie Infinity, the token price of which rose above $150 last fall, providing the project with a capitalization exceeding $9 billion. During the same period, the daily audience of the game was approaching 2 million people.

In December 2021, when Bitcoin (BTC) began to fall from its record highs, the Axie Infinity (AXS) token also began to sink, but the Axie Infinity audience grew to almost 3 million people a day, and the transaction activity in its network increased four times.

There are objective reasons for such dynamics. Firstly, most blockchain games use browsers and the creators use HTML5 and WebGL technologies, which have radically expanded the possibilities for developing browser games. Such games repopulated browsers and, at the same time, provided the ability to connect crypto wallets and withdraw NFTs to external marketplaces without any regulatory restriction.

Secondly, blockchain games have no competition as such, as the traditional PC game industry still refers to the blockchain as an incomprehensible or even “toxic” space. This gives small studios, which are not yet able to create large gaming franchises, a huge head start on development. The ability to quickly launch the in-game economy allows developers to immediately fund the continued development of their game worlds without getting into debt and without inflating working capital.

Finally, blockchain games are mostly about income because in blockchain-based games players can earn money just by playing. For completing tasks and spending time in the game, users receive tokens that can then be invested or converted into real money.

What genre to choose

Just like classic PC games, blockchain games cater to all tastes. They have a number of common features: They work from a browser or a mobile app, have simple controls and have a user-friendly interface that even a beginner can handle.

Blockchain games relate to different genres, while they all have one common feature: They are developed by using smart contracts. That is, they provide an opportunity to receive valuable virtual assets. Therefore, all games, no matter what visual component or story they have, are all play-to-earn (P2E) games. Genres of such games include actions, strategy, online multiplayer arenas, sandboxes and more, but it is possible to define the most popular.

Massive multiplayer online role-playing games (MMORPGs) usually have a dynamic reward system where players get tokens by completing in-game tasks. Tokens are used to upgrade characters in order to gain an advantage over opponents in the form of a fortified arsenal or the development of character abilities. The most popular games in this genre are CryptoBlades, My Crypto Heroes and, of course, Axie Infinity.

If pocket monsters and endless battles seem boring, gamers can pay attention to collectible card games. Such games use the NFT system so that the digital cards look like real collectibles. Players need to strategically outplay their opponents by building decks to counter different tactics, and cards can be bought, sold or traded — just like real cards. Some of the most popular card games are Splinterlands, Gods Unchained and Sorare.

Another interesting genre is “x-to-earn,” that is, to do something to earn income and not necessarily just “play” the game. The concept of “X-to-earn” was first proposed by Ben Schecter, head of operations at RabbitHole — a platform that rewards users for learning about crypto. In this equation, “X” can be any daily activity like eating, exercising, sleeping, shopping or studying. “To earn” is the financial profit received as a result of performing these specific actions.

In blockchain games, the concept of “x-to-earn” was developed primarily in the form of move-to-earn, with the example of the famous STEPN game that rewards users for playing sports or exercising. In the English learning game Let Me Speak, the main way to earn money is to buy NFT avatars and start learning English in the app. Every few minutes, players are instantly rewarded with tokens for their progress.

The most ambitious and large-scale projects are AAA games, or games developed by a major publisher, which require a lot of time, a lot of resources and a lot of money to develop. Such games are designed not only to attract players with the opportunity to earn money but simply to enjoy the gameplay. The combination of real AAA gameplay and stunning graphics sets them apart from the rest. The best example of a AAA game right now is Illuvium, which has been in development since 2020 and was released this year. The Illuvium “ILV” token is currently trading at around $60, according to CoinMarketCap, with a market capitalization of $560 million.

Related: Is Illuvium the first fun crypto RPG video game?

Lesley Fung, a content operation specialist from Footprint Analytics, believes that AAA games are the future of GameFi:

“Some of the AAA Games combine the experienced team with delicate production. The teams behind these projects have a record of success in both blockchain and gaming, and the resources to potentially make a AAA title work. The narrative in GameFi is that current games lack quality and have unsustainable tokenomics. However, once AAA games come out, these will bring GameFi to the masses after the bear market, solving much of the current problems.”

According to Footprint Analytics, which is engaged in discovering and visualizing blockchain data, the most popular blockchain game genre for the first nine months of 2022 was card games such as Splinterland, leaving x-to-earn and AAA games behind.

So, the gaming space is replete with various blockchain games for any taste. Here we chose some unique games from each genre.

Nine Chronicles

Nine Chronicles is an Idle MMORPG developed by Planetarium in partnership with Ubisoft. The client works on the Unity engine, and the backend is completely on the blockchain. 

Robert Hoogendoorn, head of content at DappRadar, told Cointelegraph:

“When we’re talking about gameplay, it’s difficult to really point one out. However, on a technological level Nine Chronicles is very unique. While most blockchain games rely on existing blockchain ecosystems like Ethereum, Polygon or BNB Chain, Nine Chronicles runs on its own custom blockchain.” 

Furthermore, the entire set of game rules exists on the blockchain, making it impossible for gamers to cheat. Each player can manage a node, participating in the maintenance of the network. Therefore, updating the game also requires all users to update their nodes.

The game focuses on crafting and in order to develop a character, the player has to constantly loot in player-versus-environment (PvE) and craft more powerful equipment.

Armor inventory in Nine Chronicles.

All fights are resolved automatically, with victory determined by the level of a player’s equipment, its element and randomness in hits. Using the same equipment, the player can both win and lose.

In March 2022, the developers made a global change in the gameplay, wherein equipment level restrictions were introduced.

Solitaire Blitz

In the genre of card games, the fantasy game Splinterlands is now very popular. But, what if a gamer wants to play an old-fashioned card game on the blockchain? 

One of the most widely played card games of all time was the classic Solitaire, a game that can be played by people everywhere and of almost any age. Perhaps that is why the developers of Solitaire Blitz took the game as a basis for their project, which now enjoys a considerable number of active players. It is the standard Solitaire card game built on the Flow blockchain. The game has seamless and fairly simple gameplay that makes it attractive.

Screenshot of Solitaire Blitz.

In Solitaire Blitz, a player competes with opponent players who have similar ranks. The player with the most points wins the game. With a unique algorithm, the skill-based matchmaking system ensures fair competition. Solitaire Blitz is a mobile game and can be downloaded from Google Play or the iOS App Store.

XCAD Network

When thinking of the x-to-earn genre, the first image that comes to mind is move-to-earn games, but this genre is not limited to movements. One of the most intuitive variations of x-to-earn is watch-to-earn, a model that allows players to earn tokens by watching videos.

At the moment, the watch-to-earn industry is run by the XCAD Network project, not a game but a platform that allows YouTube content creators to make fan tokens and release NFTs, thus opening up new sources of monetization and ways to attract fans. As for the fans themselves, they earn fan tokens for watching the content of their favorite bloggers.

XCAD Network differs from other x-to-earn projects in that the amount of reward directly correlates with user activity. The total number of subscribers of all bloggers working with XCAD Network is already more than 260 million.

Another unique feature of the project is that on the XCAD Network, users do not need to watch what the platform offers them. Instead, they simply install the XCAD plugin and watch the same videos as before. And, since the platform is built on the Zilliqa blockchain, users do not face any minimum withdrawal amounts.

MIR4

MIR4 is a AAA game that appeared on the crypto game market in August 2021 and became successful both on mobile platforms and Steam, the largest online store for computer games.

The most important distinguishing feature of the game is partial automation. Auto-battles, auto-collection of game resources and auto-completion of tasks will partly replace manual gameplay, which is suitable for players who do not have enough time.

The storyline continues The Legend of MIR3 PC game, which was closed back in February 2012. The player takes on the role of an archmage’s apprentice guarding the princess, and the main attraction of the game is to upgrade everything, mining hundreds of components and resources.

The interface of the game is quite pleasing to the eye and the game world is huge. The game store has a great selection of items, including leveling boosters, currency, scrolls, power-up stones and others.

As a mobile game, MIR4 is quite beautiful. Of course, for a player who is not used to such projects, it seems that the screen is too loaded with information and inscriptions, but everything is done compactly. Models of characters and monsters are well-detailed.

Interestingly enough, the developers officially allow four windows to be played: one on Steam, two on the official game client and one on a phone. It is worth noting that the Steam version, according to the terms of the platform, is not tied to cryptocurrency and money withdrawal.

The controls are better on the PC version, but the graphics are much nicer on mobile.

PC screenshot of a fight between the author’s character and a monster.

In terms of earning real money in the game, the game is filled with “dark steel,” a resource that after level 40, can be exchanged for DRACO tokens. This metal is required for crafting and upgrades. The rate varies but roughly corresponds to the value of 100 thousand dark steel for 1 DRACO. The tokens can be converted into fiat currency and transferred to a bank card.

Trading on the in-game market also starts at level 40. Goods and resources are sold for gold coins, which can later be exchanged for dark steel and converted into DRACO.

MIR4 has good graphics, animation, special effects, dynamic battles and beautiful characters. It attracts with the cross-platform, automation, branching development system and a lot of tasks.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com.