Blockchain-based games are referred to as play-to-earn games that use cryptocurrency or non-fungible tokens that can be bought, sold, or traded with other players. These reward-based games are a byproduct of web3, the next incarnation of the world wide web, and will require an aggressive approach in web3 recruiting to find video game programmers to face the new challenges.

While the idea first hit the market in 2017, blockchain games only started to take off in 2021. Since then, the popularity of these games has become so great that most game publishers have started to explore the concept of using blockchain technology. Many companies are beginning to view cryptocurrencies and non-fungible tokens as potential sources of monetization for video games. Blockchain recruiting firms are seeing more demand for people to fill new positions. 

As with most computer applications, traditional gaming systems are centralized. This means the applications are located on a single computer or dedicated system, restricting players from using their earnings in just the game in which the rewards were earned. However, blockchain-based games use a decentralized model so players can use their rewards across multiple gaming platforms in the blockchain system. 

Blockchain Technology

Blockchain is best described as a decentralized, shared ledger stored on a vast network of individual computers. The decentralized model makes it virtually impossible to alter the transactional information because the records must be reconciled across the entire network each time there is a change to the ledger. This makes blockchain an excellent storage and reconciliation platform for any data of a sensitive nature, from financial transactions to medical records. This is why all of the world’s digital currencies are run on blockchain technology, including the world’s two biggest cryptocurrencies, Bitcoin and Ethereum. 

Non-Fungible Tokens

Blockchain games are also referred to as NFT games. NTFs, or non-fungible tokens, are digital rewards representing a unique item used as an in-game reward. Each NTF is marked with a unique identification code, AKA metadata, which makes it impossible for one token to be replaced with another. Since each is unique and unalterable, NFTs bring value to the game assets, and tokens can include rules, characters, weapons, and skins. Players can sell, trade, or auction off the tokens to earn cryptocurrency, where legal, and the value of each NFT is set by the token’s unique features and the current crypto market value. 

History of Play-to-Earn Games

CryptoKitties, launched by Axiom Zen in November 2017, was the first game known to use blockchain technology. A player would have to purchase tokens with Ethereum cryptocurrency, and each token consisted of a virtual pet that players could breed with other virtual pets to create a new breed that would become a new and unique NFT. CryptoKitties began making headlines just two months after it launched when one new virtual pet sold for over $100,000 USD. 

By the early 2020s, many games began focusing on using blockchain for speculation rather than the more traditional types of games. However, there was a marked decline in demand for these games when the model proved wildly unsuccessful. This is believed to be because the model represented a much higher risk for investors as these revenue streams are highly unpredictable. 

The limited successes of these games during the COVID-19 pandemic renewed interest in “GameFi,” a term that describes video games backed by blockchain currency. In 2021, several major publishers, including Electronic Arts, Ubisoft, Square Enix, and Take-Two Interactive, stated they were all seriously considering introducing play-to-earn games.

The Metaverse 

The “metaverse” has become one of the hottest buzzwords in tech, and the technology has morphed into a phenomenon using an increasing number of cryptocurrency integrations. The metaverse is envisioned as a shared, immersive virtual world where players use avatars to create new experiences, objects, and landscapes. The virtual worlds feature a variety of thriving platforms, and blockchain recruiting firms report these new platforms have been enthusiastically embraced by software engineers and game developers who see the new virtual worlds as opportunities for furthering social and financial goals. 

The use of blockchain infrastructure enables metaverse platforms to make use of the expanding crypto economy to allow the exchange of virtual items for items of real-world value outside of the metaverse. Blockchain games create more equitable engagement opportunities for players, and ownership of the metaverse is shared by players. Designers of crypto metaverse platforms work to distinguish their new concepts from earlier metaverse versions by being built on blockchain technology and, as such, tend to diverge from mainstream business and value models.

Player Earnings

Some blockchain games provide players the ability to earn cryptocurrency with the rules being developed by each game. The most currently popular blockchain games offer crypto rewards and see over two million users monthly. This is creating a new market, and blockchain recruiting firms report an uptick in hiring to support the accelerated demand for the games. 

While blockchain gaming might seem like a fun side hustle, players must understand they may be required to pay an initial investment to buy into a game. Additionally, there is the risk of losing any money put into the game, and players may also lose money from normal crypto market fluctuations. It is also important to note that some games limit the frequency at which players can withdraw their tokens. This restriction may add additional risk by not allowing players to make timely withdrawals to limit losses.

Playing Blockchain Games

Players first need to own cryptocurrency of the type the game is built on and store it in a wallet to begin playing blockchain games. As most blockchain games are built on Bitcoin or Ethereum, players will need to own the corresponding currency to play. Because there are some crucial differences between cryptocurrencies, players should research what kind of game, cryptocurrency, and wallet are best for them. 

Moving forward, as Web3 and the metaverse continue to evolve, it seems likely that players will have an increasing number of options for blockchain gaming. This should also mean video game recruiters and blockchain recruiting firms will have their hands full far into the foreseeable future, keeping blockchain gaming companies supplied with qualified designers and engineers.