Recently, mini-games such as Not and Hamster on Telegram have become extremely popular. Through simple on-screen interactions, players can earn tokens. This simplicity has led to a viral growth of the community, reaching millions of users in a short period. Since its launch in January 2024, Not has attracted over 30 million members, with daily active users reaching 5 million. In line with this, Notcoin successfully conducted an ICO on several exchanges, including Binance, with a price increase of over 400% within a week.

However, these games are built on Telegram and can only be classified as mini-games. They do not have a comprehensive financial system and have shortcomings in terms of IP and playability. Their popularity is largely supported by the concept of “fair play”. Unlike similar WeChat mini-games, Telegram mini-games are not limited by platform restrictions, and their advantages can be seen as an extension from Web2 to Web3.

Rethinking GameFi

Diverse forms of gaming, but the market is like the blue sea

2023 and 2024 have been a period of rapid development for the GameFi sector, with game types now spanning farming/mining games, card games, motion games for earning money, MMORPGs, metaverse games, and automated battles.

On DappRadar, the most popular GameFi game in terms of active users (UAW) is Matr1x, an MMORPG. It had 1.92 million active users in the last 30 days, but its market cap is only $49 million. Currently, the market focus is mainly on fundamental areas such as Layer1 and Layer2, while GameFi is leaning towards technology integration. With the gaps in the fundamental areas, there remains the possibility of a secondary explosion in GameFi.

Full-chain games

Full-chain games work with all game logic, data, and assets running and stored on the blockchain. In the GameFi 1.0 and 2.0 era, most games only had their assets or some logic on the network. Full-chain games emphasize full decentralization and transparency, effectively avoiding problems such as game cheats. Autonomous Worlds can be seen as the main example of full-chain games, where the entire virtual world is built on blockchain technology, making rules and operations auditable. The future goal of GameFi is undoubtedly the full chain of games.

GameFi+

In the current market, individual GameFi projects are trying to gain popularity, and integration with artificial intelligence, IoT, and other technologies can be a breakthrough. A series of GameFi+AI projects, such as Colony, Nimnetwork, Futureverse, Palio, and Ultiverse, are achieving significant success. For example, Palio has raised $15 million in investment from Binance Labs to develop and integrate artificial intelligence technology, which underscores the strong interest and approval from large venture capitalists for GameFi+AI projects. In addition, the combination of GameFi with IoT, cloud computing, and other hot technologies is another way forward.

From a technical, IP and game perspective

The Pokémon-inspired game Axie Infinity and the migration of The Sandbox blockchain from Sand and Sand Evolution show the great development potential of traditional IP on the blockchain. Despite the significant economic bubbles, Axie Infinity and The Sandbox still have market values of $800 million and $700 million, respectively, which shows their ability to attract real users. In addition, several gambling companies are planning to implement blockchain technology in classic games:

• Atari has partnered with The Sandbox to bring classic games such as Centipede and Pong to the metaverse platform. Players can use SAND tokens in The Sandbox to participate and create experiences based on these classic games;
• Square Enix has announced plans to integrate its well-known game IPs, Final Fantasy and Dragon Quest, into the platform’s blockchain;
• Capcom announced its intention to explore the possibility of integrating its well-known games, such as Street Fighter and Resident Evil, into the blockchain gaming space;
• In the traditional gambling industry, the emergence of MOBA games such as League of Legends and Honor of Kings often signals the peak of a game’s development. In the GameFi sector, the current breakthrough method is to create a highly playable game with a full-fledged financial system. Being the first to integrate outstanding gaming IPs is an opportunity to gain a competitive advantage.

The post GameFi 3.0 era: Unlocking the future of the GameFi market appeared first on Adroverse.

1. Why Is Blockchain Seen as Environmentally Harmful?

The primary environmental criticism of blockchain technology stems from the energy-intensive process used by certain blockchains to validate transactions and maintain network security.

A. Energy Consumption of Proof-of-Work (PoW)

• Blockchains like Bitcoin and Ethereum (prior to its 2022 transition to Proof-of-Stake) rely on Proof-of-Work (PoW), a consensus mechanism requiring miners to solve complex mathematical puzzles.
• This process demands enormous computational power, leading to high energy consumption.
• Example: The Bitcoin network’s annual electricity consumption has been compared to that of entire countries, such as Argentina or the Netherlands.

B. Carbon Emissions

• Much of the energy used in mining comes from fossil fuels, particularly in regions where coal is still a dominant energy source.
• Mining operations in such areas contribute to significant greenhouse gas emissions, exacerbating climate change.

2. Breaking Down the Environmental Impact

A. Mining Hardware

• Mining requires specialized hardware, such as ASICs (Application-Specific Integrated Circuits), which consume large amounts of electricity.
• The short lifespan of mining equipment creates e-waste, as outdated hardware is often discarded rather than repurposed.

B. Geographic Concentration

• Mining activity is concentrated in regions with cheap electricity, often derived from non-renewable sources. For example, China (before restrictions), Kazakhstan, and parts of the U.S. are hotspots for mining.

C. Increasing Demand

• The growing popularity of blockchain applications, from DeFi (Decentralized Finance) to NFTs, has intensified network usage, leading to greater energy demands.

3. Steps Toward Sustainability

Despite these challenges, the blockchain industry is actively seeking ways to reduce its environmental impact.

A. Transition to Proof-of-Stake (PoS)

• Many blockchains, including Ethereum, are moving from PoW to Proof-of-Stake (PoS), a less energy-intensive consensus mechanism.
• In PoS, validators are chosen based on the amount of cryptocurrency they hold and “stake” rather than competing through computational power.
• Impact: Ethereum’s transition to PoS in 2022 reduced its energy consumption by over 99%.

B. Adoption of Renewable Energy

• Some mining operations are powered by renewable energy sources, such as hydroelectric, solar, or wind power.
• Regions with abundant renewable energy, like Iceland and parts of Canada, are attractive to environmentally conscious miners.

C. Carbon Offsetting

• Companies and projects are investing in carbon offsets to counteract their emissions.
• For example, some NFT platforms are committing to carbon neutrality by purchasing offsets or funding renewable energy projects.

D. Development of Energy-Efficient Protocols

• New blockchain technologies are being designed with sustainability in mind, such as Algorand, which uses a PoS variant and claims to be carbon-negative.
• Layer 2 solutions, like Polygon, reduce the energy required for transactions by processing them off-chain.

4. Ethical Considerations

The environmental concerns surrounding blockchain raise important ethical questions:

A. Balancing Innovation and Sustainability

• While blockchain drives innovation, its ecological costs must be addressed. Can the industry continue to grow without exacerbating environmental damage?

B. Responsibility of Stakeholders

• Should developers and miners prioritize environmental sustainability?
• How can users make informed choices about which platforms to support?

C. Equity and Accessibility

• Mining often consumes energy in regions where local populations struggle with energy scarcity. Is it ethical for blockchain operations to compete with residents for limited resources?

5. Beyond Blockchain: Context Matters

While blockchain’s environmental impact is significant, it’s important to view it within the broader context of global energy consumption:

• Traditional Finance: The banking industry’s infrastructure, including ATMs, data centers, and offices, also consumes vast amounts of energy.
• Gaming and Streaming: Online services like Netflix, YouTube, and gaming platforms have substantial carbon footprints.

Blockchain, when implemented sustainably, has the potential to replace or streamline many of these traditional systems, possibly leading to net energy savings in the long term.

6. The Path Forward

To minimize environmental harm, the blockchain industry must adopt proactive solutions:

• Incentivize Green Mining: Encourage miners to transition to renewable energy through subsidies or tax breaks.
• Promote Eco-Friendly Blockchains: Support projects that prioritize energy efficiency and carbon neutrality.
• Raise Awareness: Educate users and developers about the environmental impact of their choices.

Blockchain technology’s environmental impact is a valid concern, particularly in the context of energy-intensive mining operations and carbon emissions. However, the industry is evolving, with significant strides being made toward sustainability through greener consensus mechanisms, renewable energy adoption, and energy-efficient innovations.

The challenge lies in balancing the immense potential of blockchain technology with its ethical and ecological responsibilities. By prioritizing sustainability, the blockchain industry can continue to innovate while minimizing harm to the planet.

The post Ethical Questions: Is the Blockchain Industry Harmful to the Environment? appeared first on Adroverse.

In this article, we’ll examine the best and worst examples of NFT use in gaming, highlighting what works and what doesn’t in this rapidly evolving space.

The Best Examples of NFT Use in Gaming

1. Axie Infinity: Play-to-Earn Pioneer

Why It Worked:

• Axie Infinity introduced players to the concept of play-to-earn (P2E), allowing them to earn cryptocurrency and NFTs through gameplay.
• Players could breed, trade, and battle Axies (NFT creatures) on a blockchain-based platform.
• The game provided economic opportunities, particularly in regions with lower incomes, where some players earned a living through Axie.

Key Takeaway:
Axie Infinity demonstrated the potential of NFTs to create new gaming economies, but it also faced challenges with sustainability due to its reliance on continuous growth.

2. Gods Unchained: True Ownership of Cards

Why It Worked:

• As a blockchain-based trading card game, Gods Unchained allowed players to truly own their cards as NFTs.
• Unlike traditional digital card games, players could trade or sell their cards outside the game ecosystem.
• The game preserved competitive integrity by ensuring that matches were skill-based, not pay-to-win.

Key Takeaway:
Gods Unchained successfully leveraged NFTs to give players control over their collections without compromising the core gaming experience.

3. The Sandbox: Building a Metaverse

Why It Worked:

• The Sandbox combines gaming with virtual real estate, allowing players to buy, sell, and develop land parcels as NFTs.
• The platform encourages creativity, enabling users to design games, create art, and monetize their contributions.
• Partnerships with major brands like Atari and Snoop Dogg have boosted its appeal.

Key Takeaway:
By focusing on user-generated content and interoperability, The Sandbox showcases how NFTs can empower creators and communities.

4. Sorare: Fantasy Football with Real Value

Why It Worked:

• Sorare is a fantasy football game where players collect and trade NFT-based player cards.
• The cards are not just collectibles—they are integral to gameplay, as users build teams and compete in tournaments.
• Partnerships with major football leagues add legitimacy and excitement.

Key Takeaway:
Sorare combines gaming, sports fandom, and NFTs into a cohesive and engaging experience, appealing to a broad audience.

The Worst Examples of NFT Use in Gaming

1. Evolved Apes: A Cautionary Tale

What Went Wrong:

• Evolved Apes promised an NFT-based fighting game but failed to deliver.
• The anonymous developer disappeared with approximately $2.7 million in funds, leaving investors with worthless NFTs.

Key Takeaway:
The project highlighted the risks of investing in unverified and overhyped NFT games. Transparency and accountability are critical for success.

2. Ubisoft Quartz: The Backlash Against Corporate NFTs

What Went Wrong:

• Ubisoft introduced Quartz, an NFT platform for in-game items in Ghost Recon Breakpoint.
• The gaming community criticized the move as a cash grab, noting that the NFTs provided no significant gameplay benefits.
• Poor communication and a lack of understanding of player sentiment led to widespread backlash.

Key Takeaway:
NFTs must enhance gameplay and offer clear value to players, rather than being perceived as a way for companies to monetize further.

3. Pixelmon: Overhyped and Underwhelming

What Went Wrong:

• Pixelmon raised $70 million in an NFT sale, promising a high-quality gaming experience.
• The artwork revealed after the sale was poorly designed, leading to widespread ridicule and loss of trust.
• Despite later improvements, the project became a meme for overpromising and underdelivering.

Key Takeaway:
Hype can attract attention, but delivering on promises is essential to maintain credibility in the NFT space.

4. Cryptoland: Unrealistic Aspirations

What Went Wrong:

• Cryptoland promised to be a utopian NFT-based virtual world but failed to materialize due to unrealistic goals and poor execution.
• Marketing missteps and a lack of transparency further eroded trust in the project.

Key Takeaway:
Overambitious projects without clear execution plans often fail, damaging player trust in NFT-based gaming.

Lessons Learned: What Makes or Breaks NFT Gaming Projects

Success Factors:

• Player-Centric Design: Successful games prioritize fun and engagement, with NFTs serving as enhancements rather than the primary focus.
• Transparency and Accountability: Clear communication and reputable teams are crucial for building trust.
• Sustainability: Projects should avoid speculative economies and instead focus on long-term value.

Failure Factors:

• Overhyped Promises: Unrealistic expectations lead to disappointment and loss of trust.
• Lack of Utility: NFTs without meaningful gameplay integration feel like unnecessary cash grabs.
• Community Neglect: Ignoring player feedback or concerns often results in backlash.

NFTs have the potential to transform gaming, offering true ownership, new revenue streams, and innovative gameplay mechanics. However, their success depends on thoughtful implementation that prioritizes players and sustainability.

The best examples of NFT use in gaming show how these technologies can enhance experiences, while the worst serve as cautionary tales of greed, overhype, and mismanagement. As the industry matures, the focus should shift from speculative hype to creating value-driven, player-first ecosystems.

The post The Best and Worst Examples of NFT Use in Gaming appeared first on Adroverse.

First, Web3 games introduce the concept of “true ownership.” In the Web2 world, the game developer actually owns all in-game assets, and players have no physical rights to anything they have mined. Conversely, in Web3 gaming, in-game items are represented as NFT tokens, ensuring that players are the sole owners of these virtual assets. This allows players to freely buy, sell, and trade their items both inside and outside the game ecosystem.

Second, Web3 gaming facilitates interoperability. In Web2 gamification, in-game items are usually tied to a specific platform, making them unusable in other games. Web3 gamification breaks down these barriers by allowing players to utilize their resources in different games and virtual worlds. This interoperability improves the overall gameplay experience, taking users to a new level of freedom and versatility not possible in the traditional gaming industry.

Finally, Web3 gaming introduced the play-to-earn model, which was quickly embraced by the gaming audience. In traditional games, developers typically make the bulk of their profits from players through in-game purchases and advertising. In Web3 games, wealth is redistributed evenly, allowing players to monetize their gaming skills and time investment. Gamers can earn cryptocurrencies and rare NFTs by participating in the game ecosystem, effectively monetizing their love of gaming.

Types of Web3 games

There are quite a few genres and types of Web3 games with their own unique features and gameplay. Below are some of the most common ones.

Play-to-Earn Games

One of the fastest growing markets in the cryptocurrency industry is Play-to-Earn games. According to DappRadar, from January to December 2022, the daily activity of all crypto games on PC, Android, and iOS grew 35% to reach the 718,000 user mark. Moreover, market capitalization grew by 191%, reaching $173.5 million daily by the end of 2022.

Popular examples of Play-to-Earn games include Axie Infinity, where players can earn by breeding, fighting, and trading Axie creatures, and TownStar by Gala Games, which rewards users for building a city, managing resources, and other tasks.

NFT Collections

Games focusing on NFT collection focus on collecting and trading rare tokens that represent unique digital assets. CryptoKitties was one of the first games in this category, allowing players to collect and breed digital cats with rare qualities and features. CryptoPunks, God’s Unchained, and Illuvium are other games that have become popular among NFT collectors.

Blockchain-based virtual worlds

Some Web3 games are entire virtual worlds on the blockchain. In these worlds, players can buy, develop and monetize virtual lands and assets. For example, Decentraland and The Sandbox allow users to create and profit from their creations in a shared meta-universe.

MMOs enhanced by blockchain

In order to provide true ownership of in-game assets and create a unique player-driven economy, some multiplayer online games (MMOs) have integrated blockchain features. For example, Lost Relics combines traditional MMO gameplay with blockchain-based asset ownership.

Blockchain-based card games

Games that combine traditional card game mechanics with blockchain technology have begun to gain popularity. For example, Gods Unchained and Splinterlands use NFT cards that players can buy, trade and use in strategic battles.

Blockchain racing

Web3 has made its way to the world of racing. F1 Delta Time uses blockchain to create and trade rare virtual cars, drivers and parts.

Blockchain-based sports games

Some Web3 games focus on sports and collectibles, allowing players to own items from the world of virtual sports and sell them. For example, NBA Top Shot allows users to buy and trade officially licensed NBA collectibles in the form of NFTs.

Blockchain games for art and creativity

Some games allow players to create and sell digital art and collectibles in the form of NFTs. For example, CryptoPunks and Art Blocks combine art and blockchain technology on a conceptual level.

The post How Web3 gameplay differs from Web2 gaming appeared first on Adroverse.

DAO’s native cryptocurrency is used to validate the right to vote and determine its voting weight. These are tokens issued by the platform and used for various purposes, including the formation of smart contracts, payment of commissions within the system and other practical uses.

Some platforms issue several types of cryptocurrencies at once. For example, in DAO Maker, cryptocurrency is represented in the forms of $MKR and $DAI. These two tokens have completely different functions:

1. The $DAI token is used as a financial asset provided to borrowers of the MakerDAO platform. The $DAI corresponds to one U.S. dollar and is destroyed immediately upon return.

2. The $MKR token allows holders to receive discounts within the platform, provide liquidity for transactions, and vote in a decentralized autonomous entity

Benefits of using DAOs in cryptocurrency transactions

Why does the DeFi ecosystem work at all? The main priority of developers in this area is to create a financial environment in which no machinations behind the scenes can be carried out. This is one of the reasons for financial crises and recessions, because central banks and treasuries of countries are trying to regulate economic processes by constantly changing the total amount of fiat currency in circulation.

Inability to determine the exact amount of banknotes, the work of counterfeiters and other problems create difficult to control inflationary and deflationary processes, as well as deprive the participants of the economy of the ability to fully control their financial well-being.

The philosophy of decentralized finance is based on the desire of ordinary participants of economic processes to escape from the control of centralized systems.

What is a DAO used for?

Blockchain-based DAO has several important features:

• The blockchain network cannot be changed after a new block is added, and therefore information about the cryptocurrency remains unchanged and fully accessible to any independent auditor.
• Any interactions with the network itself occur only through smart contracts – mini-applications that are programmed to perform a strictly defined set of actions when the conditions necessary for their fulfillment coincide.
• Only direct participants in decentralized autonomous organizations. A DAO is a community of users who collectively make decisions about the future of the platform through democratic voting.

This is the decentralized management, carried out by automatic programs, the functionality of which is determined by the majority in the DAO. This approach to management provides full transparency of all processes and does not allow people and organizations from outside to influence how the DeFi platform works.

The security of the entire network is ensured by distributed autonomous organizations, where each active user managing a blockchain network node has the entire array of data to reconcile with the main network.

The post What is a DAO and how does it work? appeared first on Adroverse.

1. Understanding Play-to-Earn (P2E)

Play-to-Earn is a gaming model where players earn cryptocurrency or other digital assets (like NFTs) through gameplay. Popularized by games like Axie Infinity, P2E incentivizes engagement by monetizing in-game activities.

Key Features of P2E:

• Earning Potential: Players can earn tokens by completing quests, winning battles, or farming resources.
• Token Economy: In-game currencies can often be traded for real-world money.
• Focus on Rewards: The primary appeal is financial gain, attracting players who see gaming as an income stream.

Challenges of P2E:

• Unsustainable Models: Many P2E games rely on constant growth and new players to sustain token value, leading to “Ponzi-like” concerns.
• High Barriers to Entry: Players often need to buy expensive NFTs or tokens to start playing.
• Reduced Fun Factor: The focus on earning can overshadow the gaming experience itself.

2. What Is Play-to-Own (P2O)?

Play-to-Own shifts the focus from earning income to ownership of in-game assets. Players gain digital property, such as NFTs, by participating in the game, but the emphasis is on long-term value and player empowerment rather than immediate financial returns.

Key Features of P2O:

• True Ownership: Players own their assets outright, which can be traded, sold, or used across different games.
• No Immediate Earning Pressure: Unlike P2E, the goal is not to “grind” for money but to build value over time.
• Focus on Gameplay: Developers prioritize creating engaging, enjoyable experiences.

Example of P2O:
A player in a P2O game might earn a rare sword NFT by completing a challenging quest. This sword can be kept as a collectible, used in-game, or sold on a marketplace. The value stems from its utility and rarity, not from speculative token prices.

3. Key Differences Between P2E and P2O

4. Benefits of Play-to-Own

A. Sustainability
P2O avoids the pitfalls of token inflation by decoupling gameplay rewards from speculative economies. Assets retain value based on rarity and demand rather than hype.

B. Player Empowerment
Players own their progress and achievements. Assets can have real-world value without relying on external markets or token trading.

C. Community Focus
By prioritizing ownership and enjoyment, P2O fosters stronger, more engaged gaming communities. Players are less likely to churn, as their focus is on enjoying the game rather than earning money.

D. Broader Accessibility
Many P2O games adopt a free-to-play model, making them accessible to casual players while still offering opportunities for asset ownership.

5. The Future of Play-to-Own Gaming

As blockchain gaming evolves, Play-to-Own is emerging as a more balanced and sustainable model. Here’s why:

• Interoperability: P2O games often support cross-game and cross-platform assets, allowing players to use their NFTs in multiple ecosystems.
• Developer Incentives: Developers can focus on building high-quality games without being pressured to sustain volatile token economies.
• Player-Centric Design: By prioritizing ownership and enjoyment, P2O appeals to both casual and hardcore gamers.

6. Challenges of Play-to-Own

While promising, Play-to-Own also faces hurdles:

• Education Gap: Players unfamiliar with blockchain technology may find asset ownership confusing.
• Market Maturity: The NFT market is still young, and interoperability between games remains limited.
• Scalability: As player bases grow, ensuring low-cost and efficient blockchain transactions is essential.

The rise of Play-to-Own marks a significant shift in gaming economics. By prioritizing asset ownership and sustainable ecosystems, P2O addresses many of the flaws inherent in Play-to-Earn models. As developers continue to innovate, Play-to-Own could redefine the gaming industry, creating experiences that are not only enjoyable but also empowering for players.

For gamers, the shift from earning to owning offers a more meaningful and rewarding relationship with the virtual worlds they inhabit. The future of blockchain gaming is here—and it belongs to those who play to own.

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1. What Are Smart Contracts?

Smart contracts are programs stored on a blockchain that execute automatically when predefined conditions are met. They eliminate the need for intermediaries, ensuring secure, fast, and transparent operations. For example, in gaming, a smart contract could govern the transfer of a rare in-game item between players once payment is confirmed.

Key characteristics of smart contracts:

• Automation: Execute actions without manual intervention.
• Transparency: All terms are visible on the blockchain.
• Immutability: Once deployed, they cannot be altered, ensuring trust.

2. How Smart Contracts Enhance Gaming Ecosystems

A. Ownership and Trade of In-Game Assets
Smart contracts enable players to truly own their in-game items as NFTs (Non-Fungible Tokens). These assets exist on the blockchain and can be:

• Bought, sold, or traded across platforms.
• Proven authentic and unique through blockchain verification.
• Integrated into multiple games if developers support interoperability.

Example: A rare sword earned in one game could be sold or used in another, thanks to blockchain and smart contracts.

B. Transparent Play-to-Earn Models
Smart contracts power play-to-earn (P2E) systems by automating rewards. Players can earn cryptocurrency or NFTs for completing tasks, winning battles, or reaching milestones.

• No Middlemen: Rewards go directly to players’ wallets.
• Fraud Prevention: Immutable code ensures players receive fair compensation.

Example: In games like Axie Infinity, smart contracts automatically reward players with Smooth Love Potion (SLP) tokens for in-game achievements.

C. Decentralized Marketplaces
Smart contracts power in-game marketplaces where players can trade assets without relying on centralized authorities.

• Security: Transactions occur only when both parties meet the contract’s conditions.
• Fair Pricing: Smart contracts can prevent price manipulation or fraudulent listings.

Example: OpenSea, one of the largest NFT marketplaces, leverages smart contracts for seamless transactions.

3. Governance and Decentralization

A. Decentralized Autonomous Organizations (DAOs)
Some gaming ecosystems use DAOs, governed by smart contracts, to empower players in decision-making processes. Players can vote on:

• Game updates and feature additions.
• Allocation of community funds.
• Rules for in-game economies.

B. Fair Game Mechanics
Smart contracts ensure fairness by eliminating centralized control. Developers can’t alter game mechanics or rig outcomes without community consensus.

Example: In blockchain-based card games, smart contracts can randomize card draws, ensuring fairness and transparency.

4. Challenges and Considerations

While smart contracts offer numerous benefits, they also face challenges:

• Complexity: Writing error-free code is crucial, as flaws can lead to exploits.
• Scalability: High transaction volumes may strain blockchains, causing delays and increased costs.
• Education: Players and developers need to understand how smart contracts work to utilize them effectively.

5. The Future of Smart Contracts in Gaming

The role of smart contracts will continue to expand as blockchain gaming evolves. Key trends include:

• Interoperable Assets: Universal NFTs usable across multiple games.
• Dynamic Rewards: Smarter contracts that adjust payouts based on player behavior.
• Enhanced Security: Advances in blockchain technology to prevent exploits.

Smart contracts are revolutionizing gaming ecosystems by fostering trust, transparency, and efficiency. They empower players with true ownership of their assets, fair rewards, and a voice in game governance. As the gaming industry continues to embrace blockchain technology, smart contracts will play an increasingly central role in shaping innovative, player-driven experiences.

For developers and gamers alike, understanding and leveraging smart contracts is the key to unlocking the full potential of the blockchain gaming revolution.

The post The Role of Smart Contracts in Gaming Ecosystems appeared first on Adroverse.

Online games store data on a server that is controlled by developers. Account information, history of game events, and items that gamers receive are stored there.

This information belongs to the company, and players simply have no rights to their characters, accounts, or earned items. Even if they are purchased with real money from the in-game store.

Honest players get account bans for not playing the way the developers wanted them to. P2E projects also get banned, but for abusing game mechanics or for obvious violations of the user agreement. Using blockchain eliminates and mitigates this problem, and more importantly, allows players to own their in-game items. This makes investing in games an investment in future income rather than a waste of money.

An overwhelming number of gamers are negative about the P2E format and NFTs themselves, but some realize that this is an opportunity to make entertainment an extra income. Yes, today 95-99% of P2E is more of a pyramid scheme, but the industry is growing and AAA projects with interesting gameplay may well launch in the coming years.

Owners of major publishers are already thinking about how to introduce NFT into finished games or launch new ones and not lose their last fans. For example, Ubisoft announced the release of an NFT game, but the public reacted negatively. The project, which they plan to release on Tezos, collected a lot of dislikes and negative comments on YouTube. And before that, the developers of S.T.A.L.K.E.R. 2: Heart of Chernobyl deleted all NFT content after criticism of their own.

The post What are P2E games and why they may take the place of conventional online gaming appeared first on Adroverse.

While fun is certainly important in game development, creating a sustainable game economy is equally important. A fun game attracts players, and a well-designed game economy keeps players from getting bored. Ragnarok Online suffered an exodus after – nbsp; Hyperinflation of its in-game currency Zeny collapsed the value of the currency . MapleStory , EVE Online and On the other hand, World of Warcraft has had a stable in-game economy for decades. Based on this experience, game companies have accumulated the expertise to build a stable in-game economy.

However, the Web3 game environment is significantly different from Web2, which means that the economic structure created for Web2 games may not work for Web3 games. New types of stakeholders have emerged in the Web3 environment, and assets and goods that used to be tightly controlled within games are now flowing outward. In this paper, we will first look at the challenges of building a closed Web2 economy and an open Web3 economy. From there, we will move on to discuss how Web3 tokenomics models have evolved to address such problems. Finally, we will attempt to predict the future of Web3 tokenomics and conclude with a few suggestions.

From Web2 to Web3: the challenges of building an open economy

First, game companies must ensure user ownership of the Web3 game space. In a closed economy, game companies own game assets and users “borrow” them. In an open economy, users are guaranteed full ownership of the assets. This allows users to monetize their assets, create secondary content, and more.

Second, unlike closed economies, it is difficult for game companies to control currency outflow in an open economy. In Web2 games, a well-managed supply and demand of in-game currency prevents inflation and devaluation. In Web3 games, investors appear as a new parameter, opening up the possibility that the currency deviates from how it was originally designed in the Web2 context. Thus, game companies must consider the potential outflow of currency by investors when designing the economics of Web3 games and develop preventive measures.

Finally, game companies will have to relinquish control over the in-game economy. In Web2 games, game companies retain strong control over the in-game economy by acting as a central bank and supplying and balancing in-game items and goods. While game companies in an open economy remain responsible for game development and the initial design of the in-game economy, subsequent economic decisions depend on a democratic governance process.

Evolution of game tokenomics models

First, the NFT-based model was a transition strategy for the nascent stage of blockchain games such as Cryptokitties in 2017. In 2017, Ethereum’s DApp ecosystem was not yet vibrant and the concept of NFT was just emerging. The importance of giving users ownership of items outweighed gameplay or in-game economics. With the advent of CryptoKitties in 2017, there were games that began to incorporate NFT into their games, including Sorare, a sports game in which player cards were converted to NFT.

The mechanism of the NFT-based model is not complicated. The structure is simple because there is no FT (Fungible Token) and the main economic activity revolves around NFTs. The rest of the user’s activities, such as breeding and trading items, depend on the currencies of the underlying network, such as ETH. This is because at the time, the idea of releasing native FT in games didn’t even exist, giving projects no other option but to use existing core network currencies as in-game currencies.

The advantage of the NFT-based model is that it simplifies the design and management of the in-game economy. Not only does it save game companies resources to build the in-game economy, but it also gives them control over the in-game currency and users are given ownership of items. Also from the user’s perspective, the inclusion of the core network currency in this model simplifies the process of trading and updating their NFT.

However, the limitations of this model are also evident. First, it does not guarantee users’ ownership of in-game currency. The only thing users can own is an item or NFT, and the ownership of in-game currency is still held by the game companies. Second, this model is highly dependent on external variables, especially the price of the core network token. The lack of proprietary FTs and an economy built around them makes it vulnerable to external factors such as fluctuations in the price of core network currencies such as ETH. In addition, the business model resembles the sale of collectibles such as PFP, making it difficult for game companies to create stable revenue streams.

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