Developers of blockchain games must carefully consider which revenue model is the most appropriate for their game, as different models are utilized in this industry. Similarly, gamers can create wealth through multiple earning opportunities available in blockchain games.
Blockchain technology is a distributed ledger of transactions. It runs on a network of computers. Because the records must be the same throughout the whole network, the decentralized model makes it difficult for anybody to change the transaction information. Blockchain has witnessed tremendous growth of decentralized apps but games are still one of the popular subjects in blockchain along with DEFI.
How do Blockchain Games work?
Since most gaming platforms are centralized, players can only use their in-game currency or XP in one particular game. The assets of a gamer are under the sole authority of the centralized network. But in blockchain, all the assets are truly owned by the gamers. No one can alter them unilaterally. Blockchain games, on the other hand, employ a decentralized paradigm, allowing players to own their game data and utilize it in other blockchain games.
For instance, if a player is winning XP and weaponry in one blockchain game, they might decide to transfer their wins, exchange them or sell them to another player in a peer-to-peer marketplace.
Play to Earn in Trending
A gaming strategy is known as "play to earn" encourages participation by giving players the chance to collect things with real-world worth as they play the game. In blockchain games, participants typically receive value in the form of cryptocurrencies or non-fungible tokens (NFTs), both of which may be exchanged for fiat money.
How Can Gamers Create Wealth by Play to Earn?
The particular game mechanics that enable players to earn real rewards vary from game to game, however, there are a few primary mechanisms that have so far gained popularity in blockchain games:
Trading NFTs after Breeding
Through gaming, players can "breed" or manufacture new collectible and tradeable NFT goods by pairing up two already-existing NFTs or upgrading their NFTs by leveling up, skill up, or increasing rank. Then trading of-breed NFTs gamers can earn a return on investment.
Renting out NFTs
Players can rent out their NFTs and keep earning passive income through this.
Participating in Tournaments/Seasons:
Players can participate in seasons and tournaments to earn higher rewards. Through this, continuously play and increase their income. True ownership has been a true game-changer.
Referral and Affiliate Programs:
Most of the games offer referral and affiliate programs. Renowned gamers can cash out on this by suggesting good games to their followers and earning revenue from it.
Farming
In certain games, simply interacting with other players will win you tokens and/or NFTs. Bigger revenues come from putting in more time and developing more skills.
Revenue Models of Blockchain Games
1. In-Game Purchases
In a blockchain game, in-game purchases can be made using cryptocurrency or a game-specific token. These transactions are recorded on the blockchain, which allows for secure and transparent tracking of the purchase.
**Advantages of In-game Purchases **
It allows players to own and trade virtual assets in a way that is secure and transparent. For example, a player could use a blockchain-based platform to buy, sell, or trade virtual items such as weapons, armor, or other in-game items. These items could potentially have real-world value, as they are backed by the security and immutability of the blockchain
It could allow developers to create new business models and monetization strategies. For example, a developer could create a "play-to-earn" model, where players earn in-game items or currency through gameplay and then have the option to sell those items on a marketplace for real-world currency.
2. Subscription
Subscription-based revenue models in blockchain games involve players paying a regular fee to access the game or certain features within the game. This model is similar to the subscription model used by many online services, such as streaming platforms or software-as-a-service (SaaS) products.
**Advantages of Subscription **
It can provide a predictable and stable source of revenue for the game developer. Players who are committed to the game are likely to continue paying a subscription fee as long as they are enjoying the game and finding value in it.
It can also encourage long-term engagement from players. By offering new content or features on a regular basis, developers can keep players coming back to the game and potentially increase the overall lifetime value (LTV) of each player.
**Difficulties in using Subscription **
There are also some potential challenges to using a subscription model in a blockchain game. For example, it may be difficult to convince players to pay a regular fee for a game, especially if there are many similar games available for free or at a lower cost. Additionally, the subscription model may not be well-suited to all types of games or player demographics.
3. Advertising
Using advertising as a revenue model in blockchain games involves showing advertisements to players in exchange for payment. This model is commonly used by free-to-play games, which rely on advertising revenue to generate income.
Advantages of using Advertising
It allows the game to be offered to players for free, which can help increase the game's player base and overall reach. This can be particularly beneficial for developers who are trying to establish a new game or who are targeting a broad audience.
It can also provide a flexible and scalable revenue stream. As more players are exposed to the game, the potential for ad revenue increases. Additionally, developers have a wide range of options for incorporating ads into their games, including banner ads, interstitial ads, video ads, and more.
**Challenges to using Advertising **
There are also some potential challenges to using advertising as a revenue model in a blockchain game. For example, players may find ads to be disruptive or annoying, which could negatively impact their enjoyment of the game. Additionally, the revenue generated from advertising can be unpredictable, as it is dependent on a variety of factors such as player engagement, ad effectiveness, and market conditions.
4-Transaction Fee
Using transaction fees as a revenue model in blockchain games involves charging a fee for certain in-game transactions, such as buying or selling virtual items or currency. This model is commonly used in games that have a virtual economy, where players can trade items or currencies with one another.
**Advantage **
Transaction fees can provide a stable and predictable source of revenue, as the fees are charged each time a transaction is made. This can be particularly beneficial for developers who are looking to generate a consistent stream of income from their games.
5-Crowdfunding
Crowdfunding as a revenue model in blockchain games involves raising money for the development of the game from a large number of people, typically through an online platform. This model is commonly used by independent game developers or smaller studios who are looking to fund the development of a new game or game feature.
**Advantages **
It allows developers to secure funding for the game without having to rely on traditional sources such as venture capital or publisher funding. This can be particularly appealing for developers who are looking to retain creative control over their game or who have a unique or innovative game concept.
6- Licensing
Using licensing as a revenue model in blockchain games involves allowing other companies or individuals to use the game's intellectual property (IP) in exchange for payment. This can include licensing the game's IP for use in other media, such as movies, television shows, or merchandise, or for use in other games or game-related products.
**Advantages **
It allows the game to generate additional revenue streams beyond the sale of the game itself. This can be particularly beneficial for developers who are looking to monetize their game's IP in new and creative ways.
7- Royalties
Using royalties as a revenue model in blockchain games involves earning a percentage of the sales or revenue generated by the game. This model is commonly used by game developers who have licensed their games to a publisher or distributor, who then sells the game to players.
**Advantages **
It allows developers to earn a share of the game's revenue without having to handle the marketing and distribution of the game themselves. This can be particularly appealing for developers who are focused on game development and do not have the resources or expertise to handle other aspects of the game's release.
Conclusion
Blockchain games have truly provided ownership to gamers. Decentralization has a great role in creating a universe of games where gamers can play to earn. Developers can employ different methods to create a mechanism of sustainability. Blockchain games have the potential to offer freedom, sovereignty, and true ownership. Growth opportunities using different business models can be wisely chosen. What models are suitable is yet to be revealed. No doubt, a lot of games are still struggling for sustainability. Sooner or later, more projects will come out from this enigma.