Since the mid-20th century, mankind has been introduced to a brand new form of skill-testing entertainment known as video games. Over the years, the quality and content available in games has grown drastically, moving from simple 8-bit two dimensional graphics to fully immersive three-dimensional experiences with unique items, artwork (skins), and in-game economies. The number of gamers in the world has been growing at a near exponential rate as mainstream gaming begins to move from the living room to everyone’s mobile devices. As people invest more and more time into gaming, more value is placed on the virtual items that players spend their energy earning. Unfortunately, game developers and publishers currently have full control over all in-game economies and prevent the user from completely owning their gaming assets.

Zombie Battleground mobile app

In 2009, the Bitcoin protocol sparked the beginning of global development in a new technology known as blockchain (or distributed ledger technology) which keeps an immutable record of all transactions involving the network’s crypto-currency. Since then, the technology has evolved immensely with multiple new networks emerging. Ethereum is a blockchain protocol that functions similarly to Bitcoin but gives the user the ability to write and publish smart contracts which allows for automation of complex transactions as well as the creation of unique tokens and decentralized applications (Dapps).

Ethereum logo — source

Although the concept of a smart contract is currently rather difficult to understand, one of the first applications for smart contracts was the creation of games with in-game assets recorded as tokens on the blockchain. This allows the user to own any in-game items, skins, characters, land, etc. in the same way blockchain users own Bitcoin or Ether. As a result, all game assets are unique and traceable on the blockchain, ensuring that duplicates cannot exist. Users are also able to buy or sell these assets freely on open markets where prices are determined by supply and demand. The first blockchain game known as CryptoKitties was developed on the Ethereum network in late 2017 and was a huge success as its launch resulted in a massive network clog due to a high number of users trying to interact with the game. In CryptoKitties, users are able to purchase collectible cats with unique features and artwork. Eventually it was also made possible to breed your cats, producing new cats with traits based off the parents. Every cat is trade-able on a marketplace and users have the ability to earn currency for their cats.

Cryptokitties Market page — source

Unfortunately, the launch of cryptoKitties was rough as the game is entirely run on the Ethereum main-net. As this was a very early blockchain game, each move in the game required a gas fee (paid in Ether) in order to record the action on the blockchain. Since the Ethereum network can only process a limited number of transactions per second (currently about 15), the network became clogged very quickly as players were attempting to record their actions simultaneously. Since then, solutions to this limitation have been created, and a multitude of new blockchain games have begun development. In this article, I will be focusing on games running off the Ethereum smart-contract platform.

Shortly after the blockage caused by cryptoKitties, the idea of using a separate side-chain to allow for a larger volume of simultaneous transactions was established as a solution. These side-chains are just other blockchains created specifically for use with games. They contain their own rule-sets and security features which are more appropriate for the use of gaming. Digital assets remain on the side-chain until the user is ready to transfer them to the Ethereum main-net in order to hold the assets in their more secure Ethereum wallet, or if they want to sell them on the marketplace.

Zombie Battleground main banner — source

Loom network was one of the first developers who began creating games using side-chains. One of their current games in development is known as Zombie Battleground. Zombie Battleground is a zombie-themed digital collectible trading card game which plays very similar to other card games such as Blizzard’s Hearthstone. However, unlike Hearthstone, in Zombie Battleground the user is able to buy, sell, or trade their digital cards with other users. The game features cards of varying rarity, and the total number of each card type in circulation is tracked. As a result, scarcity and utility drive the market value of each card in the game. In addition to purchasing card packs, players will also be able to earn new cards simply by playing the game, making it possible to profit off of game-play.

Similar to CryptoKitties, Axie Infinity is another blockchain game where the user collects and breeds creatures known as Axies. This game features a very complex skill system which drives the choices the player makes in purchasing and breeding their Axies. Once the player has at-least three Axies, they can form a team and battle against other users in the arena. Each Axie is born with six body parts which determine its skill-set and stats. The body parts your Axie is born with is entirely determined by a randomization algorithm based on the genes carried by the parent Axies. Axies earn experience points from fighting in the arena which are required for breeding. In the future, the developers are planning on expanding the Axie universe by adding the land of Lunacia where your Axies can call home.

Sample Axie Battle screenshot — source

When Lunacia launches, player-versus-environment (PvE) gameplay will be made available with Axies being able to go on quests and battle with non-player character’s (NPC’s). Land in Lunacia, however, is in limited quantities and is currently being sold to players in a crowd-sale. These plots of land will be trade-able for Ether (and other currencies). However, land-lords will also be able to rent their land to other players who would like to house their Axies but do not own any land. In addition, land lords will also be able to offer services on their land, such as running a shop or hosting quests, through which they would receive loyalties. The land sale is currently in progress, and you may purchase plots of land either as an investment or for gameplay here:

Early demo of land gameplay in Axie Infinity — source

Axie Infinity is not the first game to introduce land that is sold to and owned by the players. Decentraland was the first project built on Ethereum to introduce player-owned land. The main currency of Decentraland is MANA. The land in Decentraland is meant to be used as a platform for other game developers to create their content on. An example of this is Chainbreakers which uses the Decentraland platform and currency. In order to run quests in Chainbreakers, the quests must be hosted on land in Decentraland from which landlords would receive royalties. As a result, land in Decentraland is maintaining competitive value, with the cheapest plot of land valued at over $600USD (as of this writing).

If you are a lover of role-playing games (as I am), then My Crypto Heroes (MCH) may be the game for you. In My Crypto Heroes, the player collects, trades, and battles with characters who are based on historical figures. Characters can be equipped with items called extensions which provide bonus stats. Both PvE and PvP gameplay is available, with PvP being arranged in a unique tournament style battle-system. Players can level up their heroes over time in order to be able to partake in more difficult challenges. MCH also contains a land system with multiple different islands which battle against each other. Users can participate in island battles (PvP) so long as they either own land on that island or decide to join the island for the duration of the tournament. This game also runs on a sidechain, and thus offers smooth and reliable gameplay without clogging the Ethereum main-net. The best part about this game is that each new account receives a team of characters (which are non-tradeable) so the user may begin playing without any initial investment. Upon creating your account, you may enter my referral code: (HKYg) in order to receive an additional free character.

Sample PvE battle in MCH — source

These are just a few examples of the numerous blockchain gaming projects currently in development. For the first time ever, it is possible to participate in online games with the prospect of earning real money without breaking any terms of service (ToS). The potential for this industry is enormous, as blockchain gaming has only been around for under 2 years. Each successive launch further pushes the limits of what is possible with blockchain technology. At the moment, the games available offer fairly simple gameplay and do not require lengthy time commitments. The communities for these games are also thriving on discord, so if you are interested in playing and need some help, I recommend joining your game’s discord server.

If we contrast blockchain gaming to the development of early online gaming, it becomes rather obvious that we are in the beginning stages of development. The “World of Warcraft” or even “Everquest” of blockchain gaming has yet to be developed, but the community is eagerly awaiting brand new unreleased projects which may one day live up to their hype.

I hope you enjoyed reading this article and gained a little bit of insight on what the future has in store for gaming. If you would like to support me, you may do so by using my referral link for Axie Infinity to purchase land or during registration for MCH, enter my referral code: HKYg in order to receive an extra hero. In the future, I plan to cover more upcoming titles and perhaps dive into current games in more detail. Please feel free to leave any suggestions below!

Disclaimer: The information presented in this article is my own personal opinion and is not meant to be investor advice. Any investment decisions you make are solely at your own risk and I do not provide any guarantees of positive returns on any investment