Blockchain Gaming: A Look into the Future
This is a segment from The Drop newsletter. To read full editions, subscribe.
The Evolution of Blockchain Gaming
Blockchain gaming has experienced various phases of growth and evolution. From the CryptoKitties craze in 2017 to the emergence of games like Axie Infinity, Gods Unchained, and Splinterlands in 2018, the industry has seen its ups and downs.
While some may believe that the hype around crypto gaming is on the decline, venture capital firm Bitkraft Ventures holds a different view. According to Matt Halstead, a partner at Bitkraft, the future of blockchain gaming is promising and full of potential.
Bitkraft Ventures has a diverse portfolio that includes companies like AMGI, Immutable, HyperPlay, and Yield Guild Games, as well as non-crypto firms like Discord and Epic Games. Despite their vested interest in the success of crypto gaming, Bitkraft is investing in what they believe will shape the future of the industry.
The Future of Gaming
Halstead believes that gaming is poised for significant growth in the coming years. He emphasizes the importance of not overlooking the gaming industry, as it is set to expand and evolve in ways we can’t yet imagine.
While the play-to-earn trend saw a decline in early 2022, some game studios began promoting a “play-and-earn” model that prioritizes gameplay over financial incentives. The industry shifted towards creating immersive gaming experiences that prioritize fun and engagement over profit.
Despite the initial hype around interoperable in-game items and NFTs, the vision of a blockchain-based metaverse has faced challenges. Halstead attributes this disconnect between expectations and reality to a lack of understanding of the gaming industry as a whole.
The Future of Blockchain Integration
Looking ahead, Halstead sees the creator economy, cosmetic items, and social interactions within games as areas that could benefit from blockchain integration. Additionally, financial-forward games, known as “GameFi,” are likely to continue to thrive, offering a blend of entertainment and financial incentives.
Bitkraft General Partner Carlos Pereira predicts the release of AI-native crypto games and the rise of “risk-to-earn” subgenres in the coming year. Companies like Loot Labs, which offer NFT loot boxes with mystery assets, are paving the way for innovative gaming experiences that blend blockchain technology with traditional gameplay.
As the gaming industry continues to evolve, the integration of blockchain technology is set to play a crucial role in shaping the future of gaming.