Cryptocurrency Exchange: The Future of Blockchain and the Video Game Industry

The integration of blockchain and video games is bringing promising transformations to the industry. In today’s article, we will trace the development of video games over more than 70 years, from their inception to today, exploring the role and position of blockchain technology in this field.

The future of blockchain and the video game industry.

History of the video game industry

Source: Visual Capitalist

1950s: The first video game console

Digital currency crypto exchanges: The future of blockchain and the video game industry

In the early 1950s, the term “video game” was not yet widely known. One significant advancement was the emergence of the first video game console, developed by scientist William Higinbotham in 1958 at the Brookhaven National Laboratory in the United States.

This device, called “Tennis for Two,” displayed a simple tennis game on a CRT monitor. Players interacted with the game via control panels. However, this device was merely an experimental project and was not widely developed or popularized.

Tennis for Two arcade machine

During this period, video game consoles were mainly produced by research teams and universities, typically used only in laboratories and special events.

1970s: The rise of computer games.

In the 1970s, as developers focused on creating games for personal computers, the industry saw major breakthroughs. In 1972, Atari launched its first game, “Pong,” which sparked a gaming craze on black-and-white screens. They successfully brought video games from the lab to the masses.

The trend of diversification in video games began to spread, evolving from simple games like “Space Invaders” to complex genres such as role-playing games. Personal computers quickly became the target for innovation in the gaming industry, laying the foundation for its booming development in the following years.

1980s: The golden age of arcade and home consoles

This period was a golden era for gaming culture, with arcade centers becoming popular destinations. Games like “Pac-Man” and “Donkey Kong” swept the world, intensifying competition among game developers.

Pac-Man arcade machine

Additionally, the emergence of consoles like the Nintendo Entertainment System (NES) and Sega Master System brought unique home gaming experiences. The 1980s marked the golden age of arcades and consoles, with significant breakthroughs in design and graphics, laying the groundwork for the comprehensive development of the video game industry.

1990s: The advent of 3D technology and exclusive consoles.

By the 1990s, we witnessed breakthroughs in 3D technology in video game graphics and fierce competition among console manufacturers for dominance.

3D technology opened a whole new world with vivid and realistic visuals. Sony’s PlayStation and Nintendo 64 offered unique 3D experiences. “Super Mario 64,” “The Legend of Zelda: Ocarina of Time,” and “Final Fantasy VI” became iconic titles of that era.

These trends not only changed community perceptions of video games but also set new standards for graphics, gameplay, and storytelling.

2000s: The rise of online gaming

During this period, the internet opened a new world of multiplayer gaming, allowing players to interact and compete online. Massive multiplayer online games (MMOs) like “World of Warcraft” became popular worldwide, attracting millions of players. Platforms like Xbox Live and PlayStation Network provided robust multiplayer experiences, connecting players from around the globe.

Meanwhile, the development of online games created more creative space for game design and fostered strong gaming communities. This decade was not only about playing games but also about connecting and sharing gaming experiences with a global community.

2010s: Cloud gaming and virtual reality

In the 2010s, we witnessed another technological leap in the video game industry. Virtual reality and cloud gaming gained unprecedented attention.

Cloud gaming broke the limitations of PC hardware, allowing players to enjoy games without high-end devices. Services like Google Stadia and Microsoft xCloud offered convenient and flexible experiences, opening a new era of digital entertainment.

Virtual reality technology elevated gaming experiences to a new level, creating immersive and realistic interactive environments. Oculus Rift and HTC Vive were pioneering devices that enabled players to immerse themselves in virtual worlds with stunning visuals.

2020s and beyond: Blockchain games and the Metaverse

CryptoKitties is considered the first blockchain game, but the new term “Infinite Axis” has created a historic milestone for the modern gaming industry, changing players’ perceptions of ownership. With blockchain technology, ownership of in-game assets shifts from publishers to players. This has opened up new economic models, allowing players to earn income while playing.

The virtual reality technology of the 2010s enhanced our experience within specific game environments, while the Metaverse refers to a vast simulated world where all players can participate and interact. It is not just a game but a foundation for building and experiencing virtual lives.

The future of blockchain and the gaming industry

The COVID-19 pandemic has profoundly changed our daily lives for a long time. Masks, hand sanitizers, and testing kits will become indelible parts of a generation’s memory.

For Web3-era citizens, another unforgettable memory remains: the rise of play-to-earn models. It can be said that the pandemic lockdowns accelerated the explosive growth of “play-to-earn” movements, and players later realized that this was blockchain gaming.

In the following chapters, we will explore in more detail the blockchain gaming ecosystem and its role in the future development of the industry.

What is blockchain gaming?

Blockchain games are defined as games that utilize blockchain technology partially or entirely to store data and process game logic.

The biggest difference between blockchain games and traditional games is ownership. In traditional games, all resources, including user accounts, are managed and owned by the developers, whereas blockchain games allow players to truly own these assets, creating an economy where players can earn money.

Features of blockchain games

Ownership and Self-Custody

Items and resources you own in the game are entirely yours, stored and managed by you. This means if you accidentally transfer or lose these assets, no one can help you recover them.

Decentralization and Immutability

Blockchain networks give your assets decentralization and immutability, ensuring the safety of your assets and under your control.

Transparency

All information on the blockchain is transparent; anyone can trace and verify it. This ensures that the development team cannot manipulate your assets improperly.

Economics

You can participate in free market trading with your owned items without needing third-party permission.

Classification

Digital currency crypto exchanges: The future of blockchain and the video game industry

Based on the level of blockchain integration, blockchain games are currently divided into two main categories:

Semi-on-chain games: Use blockchain to store some important economic resources, such as currency, characters, and equipment.

Fully on-chain games (FOCG): Use blockchain to store resources and process game logic.

The comparison table below will help you better understand the differences between blockchain games and traditional games.

Comparison table of traditional games vs. blockchain games.

Each type of blockchain game has its own advantages and disadvantages, but fundamentally, due to many positive factors, fully on-chain games will become the next development direction in the blockchain gaming field. Network scaling solutions like Layer 2 and next-generation blockchains will serve as catalysts for this development.

The state and future of blockchain gaming

First “Beta” version

The huge success of Play to Earn in the GameFi 2021 season made the gaming community and developers realize the positive value blockchain brings to the video game industry.

Popular blockchain game Axie Infinity reached 2.8 million daily active users at its peak, with in-game item trading exceeding $4 billion. The project’s market cap briefly surpassed $10 billion in November 2021.

Axie Infinity user data. Source: Priori Data

Although it caused a wave, GameFi and the game’s rapid development still face questions about the sustainability of its economic model. After a glorious period, the prices of in-game items and project tokens plummeted, similar to what most “play-to-earn” projects have experienced.

Changing for growth

The testing phase of the blockchain gaming market (GameFi 2021 marked the beginning of this phase) provided valuable experience for communities and developers. Transformation is crucial for the industry’s continued prosperity.

The new generation of blockchain games no longer overly emphasizes profit models similar to Ponzi schemes but gradually shifts focus to gameplay experience. Quick-rich schemes like “click-to-earn” are evolving into “skill-to-earn” models, requiring players to employ more strategies to earn rewards.

During this period, many AAA games have also launched on blockchain networks. Some notable titles include: Elyvium, ZepetoX, BigTime Paradise.

Additionally, enhanced content, storytelling, and experiences encourage players to “consume tokens,” helping to control inflation and extend game longevity.

Another factor developers focus on is social media. Reflecting on Candy Crush Saga in 2012, social networks were undoubtedly a key factor in its success. Developers integrated with Facebook, helping players acquire items and display leaderboards. Behind mobile screens, a quiet competition among friends emerged, with players trying to surpass their friends on the leaderboard.

Today’s blockchain games also aim to build large communities through simple gameplay. The most recent popular game among the community is… Pixel Wanderer.

It’s clear that blockchain gaming is gradually returning to the core values of traditional gaming: entertainment and experience, not just earning.

Institutional interest

Digital currency crypto exchanges: The future of blockchain and the video game industry

Another aspect worth noting is that, despite a series of incidents around GameFi and even the crypto market entering a bear market, the blockchain gaming sector continues to attract the attention of major investment funds. This is because the values it aims to showcase are widely recognized by the community.

Funding in the cryptocurrency market

Besides some familiar faces actively involved in the crypto market, many large traditional gaming companies are also participating.

The CEO of game giant Electronic Arts (EA), with a market cap of $36 billion, stated in an interview… Some say that blockchain and NFTs are part of the future development of the gaming industry.

Epic Games Store (publisher of the popular game “Fortnite”) has also released new games. Blockchain game titles have been listed on their store since late 2022.

A more recent example is Ubisoft, which has developed popular game series like Assassin’s Creed, Far Cry, and Tom Clancy. They also announced… a partnership with Immutable to develop blockchain games.

For decades, games have provided us with a variety of experiences—from visuals, gameplay, and storytelling to community connections and emotional resonance. Now, blockchain is helping us move into a new era: games are not just experiences but also collectibles, owners, and part of a free and open economy system.

Conclusion

With the development of blockchain infrastructure, blockchain games still have many years before they become mainstream among players. This transformation could be a historic milestone, forever changing how players and society view the gaming industry. **$GAME2 **