Blockchain gaming or gamefi is technology that Incoperates Blockchain into the video gaming industry by means of cryptocurrencies or NFT's.
Blockchain gaming has proven to be a lucrative field with the Blockchain play to earn mechanism to enable players buy, sell, or trade you in-game items with other players.
Some players buy NFT to participate in the game contest and they get to win or lose those NFT or in-game items to other players.
Blockchain gaming has been in existence since the launch of the first Blockchain game, crypto kitties, the game featured a reward for players who breed Virtual cats as NFT's.
Some of the pros of Blockchain gaming includes:
Innovative solutions: Blockchain gaming encourages creativity through experimentation. Developers can leverage on the power of flexibility and cross chain interoperability to create new game mechanics, genres and features.
Community building: Blockchain gaming also fosters community engagement and collaboration as players get to participate in governance and game development as well as create and share their contents and experiences.
Interoperability: cross game compatibility is possible because different games and platforms built on the same Blockchain standards can support migration of in-game items. This enables seamless integrated gaming experience.
Blockchain gaming has not been free from setbacks some of which are:
Scalability: scalability has always been a Blockchain issue and it affects the implementation of blockchain solutions in any field. Current Blockchain networks easily face bottle neck with transactions volume. The Bitcoin network can only handle 3-7 transactions per seconds. And when the network get too congested it leads to higher fees for transactions. Though there are several layer 2 solutions to solve this problem, but most of them face the blockchain trillema.
Immutable x is one of the major frontiers of Blockchain gaming, it is a zero gas network enabling secure transactions for NFT's and other sidechains.
Regulation and sustainability: there are several regulatory uncertainty with Blockchain solutions. Regulatory authorities are not clear and consistent across different jurisdiction. Taxation, licensing, compliance and liability depends on the laws of the countries where they operate.
Current Blockchain technology faces huge backlash with energy consumptions, and has a negative impact in environment and society as a whole.
To address this, many Blockchain games use more energy efficient mechanism such as proof of stake or proof of authority.
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