Cultivating Ownership and Interoperability in Blockchain Gaming

2024-02-22, 08:07

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## [TL; DR]
Gaming asset interoperability is key to the development of the gaming sector in 2024.

NFTs are a key component of decentralized economies as players acquire, trade and sell them.

Cheating, high gas fees, new regulations, scalability issues and market volatility are some of the challenges affecting the blockchain gaming sector.

## Introduction
The gaming sector continues to evolve as it encompasses new innovations and strategies. Blockchain analysts predict that the gaming sector will continue to grow as many people adopt web3 games. There are several reasons people ![](https://www.gate.io/learn/articles/a-comprehensive-guide-to-the-popular-blockchain-game-bigtime/853), including high security and the emergence of web3 gaming economies that enable players to earn valuable digital assets.

This analysis looks at the evolving trend in the gaming sector as well as the importance of ownership, transparency and interoperability. We will also evaluate the challenges that exist in the industry and suggest viable solutions to them.

Recent news: [DAO Blockchain GamIng Guild Merit Circle Hashtag](https://www.gate.io/learn/articles/firstvip-research-report-dao-blockchain-gaming-guild-merit-circle/1821 "DAO Blockchain GamIng Guild Merit Circle Hashtag")

## Blockchain Gaming Ecosystem in 2024
There is no doubt that the gaming sector will continue to expand in the next 5 to 10 years. Grand View Research [predicts](https://www.grandviewresearch.com/industry-analysis/blockchain-gaming-market-report#:~:text=The%20global%20blockchain%20in%20gaming%20market%20is%20expected%20to%20grow,share%20of%2026.04%25%20in%202022. "predicts") that the sector which was valued at USD 4.83 billion in 2022 will likely grow at a <a href="/uk/price/compound-comp" target="_blank" class="blog_inner_link">Compound</a> annual growth rate (CAGR) of 68.3% between 2023 and 2030. It has identified interoperability as the key factor to drive the growth of the gaming sector. 
![](https://gimg2.gateimg.com/image/article/1708588721pfy2KXYqAj.jpg)
Expected Gaming Sector Growth - Gandviewresearch

As <a href="/uk/price/the-graph-grt" target="_blank" class="blog_inner_link">The Graph</a> depicts, Grand View Research expects astronomical growth of role playing games, collectible games and open world games, all based on the blockchain. Security, transparency, interoperability and the decentralized nature of blockchain games will likely lead to greater adoption in the future.

Read also: [Deciphering the Promises and Risks of Full-Chain Games](https://www.gate.io/learn/articles/deciphering-the-promises-and-risks-of-full/1786 "Deciphering the Promises and Risks of Full-Chain Games")

As per the [IMARC Group report](https://www.imarcgroup.com/blockchain-gaming-market "IMARC Group report"), the gaming market size reached US$ 8.9 Billion in 2023 and they expect its growth trajectory to continue in 2024. Going forward, IMARC predicts that the gaming sector will grow by 65.2% between 2024 and 2032 to reach US$854.4 billion by the end of that period.

Similar to Grand View Research, IMARC says that Security, transparency, innovation, partnerships among players and the integration of non-fungible tokens (NFTs) will drive the growth of the sector.

## Ownership in Blockchain Gaming
One factor that heightens the adoption of blockchain gaming is ownership of in-game assets. Ownership of such digital assets allows players to buy, sell and trade them, generating value in the process.

Primarily, blockchain games enable individuals to earn real-world value through digital assets like NFTs and cryptocurrencies. As a result, web3 gaming becomes a profitable venture as well. The fact that good players sell their digital assets to others and earn a living through that entices other people to join the gaming industry.

## NFT in Blockchain Games
Before going further let’s explore the roles of NFTs in the blockchain gaming sector. Non-fungible tokens which are unique assets that can represent virtual or real-world items like land have much to offer to the industry.

Read also: [The Best NFT Games to Play Right Now](https://www.gate.io/learn/articles/top-best-nft-games-blockchain-gaming/1309 "The Best NFT Games to Play Right Now")

In the web3 gaming sector NFTs often represent in-game assets such as weapons, characters and land. They can serve as access points to some games and exclusive virtual events like conferences.

Therefore, NFTs provide a basis for vibrant gaming economies where players earn digital collectibles they can sell or trade. These NFTs are the key elements in the [play-to-earn blockchain games](https://www.gate.io/learn/course/p2e-fundamentals "play-to-earn blockchain games"). In many cases, players access real-life merch and airdrops in the form of NFTs.

Many players are attracted to the web3 games by the collectible nature of NFTs that give them a sense of ownership and value that may go beyond an individual game.  Also, NFTs enhance loyalty and create a sense of oneness among members of certain decentralized economies.

Read also: [Top 10 Best Play-to-Earn Web3 Games](https://www.gate.io/learn/articles/top-10-best-play-to-earn-web3-games/1515 "Top 10 Best Play-to-Earn Web3 Games")

## Asset Interoperability and Decentralized Economies
The current trend in web3 gaming enables the use of digital assets like NFTs across different gaming platforms which increases their utility.

In the past in-game assets like characters and weapons were confined to individual games. Now, there is interconnectedness among decentralized games as the same assets can be used on different platforms.

## Enhanced Transparency and Trust
With the blockchain, gaming activities and transactions are recorded on a public ledger enabling anyone to track and ascertain what could have taken place. That safeguards the players’ essential data and prevents fraudulent activities such as cheating. All these contribute to fair and trustworthy gaming ecosystems.

Also, the players are able to verify the authenticity of different blockchain gaming assets such as NFTs. Such transparency creates trust and confidence in players who are the key gaming stakeholders.

The blockchain enables the players to gain insight into NFTs and gaming dynamics which helps to dissipate fear of manipulations and create belief in the existence of fair playing fields where individual players’ skills make the difference.

Also, there is room for the players to actively participate in shaping the future of specific games through a transparent decision making process. The use of on-chain governance proposals and voting processes brings a collaborative approach to the gaming sector which empowers communities and creates trust in the system.

## Challenges of Blockchain in Gaming
There are several challenges that blockchain gaming faces, including high energy consumption, regulatory developments, scalability issues and environmental concerns.

Cheating: One of the major challenges that blockchain games face is cheating among the participants who include the players. Some people who participate in play-to-earn (P2E) games do not adhere to honest and fair play. They often search for ways to cheat other players and take advantage of vulnerabilities that exist in the gaming protocols to steal in-game assets.

To prevent cheating and theft, the developers should build bulletproof gaming infrastructures. They should also integrate Artificial Intelligence (AI) and Machine Learning (ML) which help to detect and prevent fraudulent activities.

High Gas fees: The other challenge which players encounter is that of high gas fees when using gaming platforms. Basically, the gas compensates for the computing power that drives the different gaming smart contracts.

When developing blockchain gaming protocols the developers should include measures that minimize gas fees the users pay. They can achieve that by instituting various measures such as bundling several transactions into one.

Regulatory challenges: Regulations which many governments impose affect the operations of blockchain games. As an example, the United States SEC regulates the use of digital assets including tokens and cryptocurrencies.

The gaming platforms should comply with the various regulations that exist in the jurisdiction in which they operate. What the developers need to do is to abide by the various regulations to avoid lawsuits and closures of gaming platforms.

Scalability Issue: Some blockchains like <a href="/uk/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> often encounter scalability issues during high transaction periods. For example, during periods of high demand the gaming platforms can experience exorbitant gas fees, network congestion and slow transactions. These become barriers to the players’ gaming experiences.

To overcome these challenges several blockchains upgrade their infrastructure. They can introduce side-chains, layer-2 scaling solutions or optimized consensus mechanisms.

Market volatility: The prices of [digital assets like NFTs](https://www.gate.io/learn/articles/what-are-nfts/4 "digital assets like NFTs") and cryptocurrencies become very volatile at times. Sadly, the value of some cryptocurrencies and NFTs may drop to near-zero points. In some cases, they can even implode which create financial risks to developers, players and even investors.

The best way to maintain the value of digital assets is to increase their utility in the real-world. Some gaming projects can make their utility tokens a means of payment in e-commerce platforms.

Read also: <a href="/uk/how-to-buy/the-graph-grt" target="_blank" class="blog_inner_link">how to buy The Graph</a>

## Blockchain Gaming Trends Redefining 2024
Based on what has been happening since 2023 there are clear gaming trends that will continue in 2024. The [play-to-earn gaming model will take center stage](https://www.gate.io/learn/articles/unveiling-the-economic-model-of-blockchain-gaming/901 "play-to-earn gaming model will take center stage") during the year as it enables the players to become active contributors in decentralized economies.

Empowering of gamers will continue in 2024 as they will earn tangible rewards in the form of in-game assets like NFTs. Some gaming protocols enable the players to acquire utility tokens they can sell or trade on the crypto market and generate profit.

Many blockchain gaming protocols will offer immersive virtual experiences to the players. The integration of Virtual Reality (VR), augmented reality (AR) and physical realities create true immersive and interactive experiences for the gamers.

The other trending development is the emergence of Decentralized Autonomous Organizations (DAOs) in the gaming sector. With such structure DAO members, also referred to as governance token holders, participate in making decisions on different aspects of their games. This means that the players no longer become passive stakeholders but active participants in the development of the various games.

Finally, communities are becoming the core of different blockchain games. All the people who play the games, invest in them or support them become part of the gaming communities. As a result, much of the marketing activities revolve around building such communities.

## Conclusion 
Some blockchain intelligence firms believe that the gaming sector will grow by 68.3% within the next 6 years. Enhanced security, transparency, interoperability and the decentralized nature of web3 games will anchor the growth of the industry. The emergence of vibrant decentralized economies will likely attract many players and investors to blockchain games.

## FAQs about Blockchain Games
### What are blockchain games?  
Blockchain games are games developed on the blockchain that allow players to earn and trade in-game items. The in-game assets are in the form of non-fungible tokens.
### What is interoperability in gaming?
Interoperability in gaming enables the transfer of digital assets like NFTs across different protocols or platforms. As a result, the players can use the same in-game assets with different games.
### What is blockchain interoperability?
Blockchain interoperability is a process where different blockchains interact with each other which enhances the transfer of assets across them. The blockchains can also exchange data among them.
### How is blockchain used in gaming industry?
Blockchain enables game developers to create different in-game assets in the form of NFTs. As a result the players acquire, own and trade the in-game items.
### What is the potential of blockchain gaming?
Blockchain games often have their decentralized economies where players can acquire and exchange digital assets like NFTs. Also, the games have privacy, transparency and promote fairness which attract many people to join them.

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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