By Kameshwaran Elangovan
Blockchain gaming is considered to be a stable asset, and the emerging sector has surpassed a total of $2.5 billion in investments globally, which could explain why it is still very much in demand.
The crypto winter was not a stranger to anyone following the news. Global crypto markets fell from $2.2 trillion at the start of 2022 to $796 million by the end of the year. These turbulent times were understandably a cause of concern for investors from across the world. However, despite the bear market, blockchain gaming managed to not just survive but thrive.
According to DappRadar, Blockchain gaming has grown by 48% in January 2023, compared to other blockchain activities, up from 45% in December. Although we cannot deny the fact that blockchain gaming is yet to witness mainstream adoption, it does have a significant advantage over crypto. For instance, take the fact that crypto markets are known for their volatility… Blockchain technology, on the other hand, has found multiple applications across various industries such as finance and healthcare. Similarly, gaming, too, is more tangible to the user. So it shouldn’t come as a surprise that the gaming industry is projected to reach revenues worth $365.6 billion in 2023.
Secondly, blockchain gaming allows users to monetize their winnings, presenting an opportunity to generate additional sources of revenue. With the advent of Web3 and the use of blockchain in gaming, Non-fungible Tokens (NFTs) have grown in popularity, and the recent NFT market has registered a bullish trend, recording $941 million in trading volume and $9.2 million in sales count, reflecting what may be a promising quarter for NFTs. Crypto, on the whole, may have lost empathy, but gaming has empathy, patronage, and the admiration of scores of people all over the world.
One other thing to keep in mind is that gaming has never seen a dull market. Ever since games were launched, they have been sought after by a large and eager audience, ensuring popularity that stands the test of time. As technology evolves, it would stand to reason that the gaming industry would utilize these novel innovations. One such innovation is the blockchain. As an augmentation to the already burgeoning gaming sector, crypto has got nothing negative to do with altering the market landscape of games.
Blockchain technology, therefore, has transformed aspects of the gaming industry. Ensuring transparent transactions, enhanced security, lowered transaction costs, verification of users, and improving overall user experience are some ways in which blockchain has been able to supplement the world of gaming to make it better. Blockchain also assures one the longevity of gaming assets, making gaming much more rewarding than previously envisioned.
Over the past few years, blockchain technology has found myriad applications and large-scale user adoption in areas apart from gaming. The winter, thus, is only related to crypto and not to blockchain or gaming. The landscape of gaming has remained undeterred for years, rapidly growing year after year. Even when the crypto winter hit hard, blockchain gaming remained in vogue, leaving no room for even the notion of a “gaming winter” or a “blockchain winter.”
The developments in the crypto market have become a source of worry for investors. However, blockchain gaming is weathering the crypto winter, continuing to garner popularity and appreciation for the unique benefits it is capable of providing to its users. Blockchain technology in gaming is enabling economic benefits for users, ensuring game sustainability, while also looking out for key stakeholders such as game developers. By leveraging blockchain capabilities to enable a digital economy where users are able to earn money as part of the in-game experience, blockchain gaming presents a significant upgrade from traditional gaming, allowing it to flourish come what may.
The author is co-founder and COO, GuardianLink