Eric Bravick is CEO of The Lifted Initiative, a team of researchers, engineers, and business leaders focused on building foundational web3 infrastructure and tools.
Through decentralised ownership and the tokenisation of real-world assets, blockchain is set to revolutionise the gaming experience, building community and collaboration in unprecedented ways.
This paradigm shift prompts us to ask: how will it redefine the relationship between players and their virtual worlds? By exploring the key advantages of tokenising assets and the concept of direct digital ownership we can begin to grasp the profound impact blockchain technology will have on the gaming industry.
The key advantages of tokenising real-world assets in gaming
Tokenising real-world assets in gaming through blockchain technology enhances economic transparency. Once in-game items are tokenised and traded on an open market, both game developers and players gain a clearer understanding of their value. Traditional game economies often struggle with balancing item values and managing in-game economies accurately. Tokenisation, allows for immediate market feedback and a transparent view of item value fluctuations, providing the opportunity for more nuance in economic controls.
Tokenisation also removes barriers to monetising in-game assets. Players can easily buy, sell, and trade items, creating dynamic side economies that augment the in-game economy. An open market environment empowers players and facilitates the creation of ad hoc economies outside the game.
Additionally, tokenisation democratises ownership. Unlike traditional gaming models where only developers have insight into item availability and value, blockchain allows players to manage their assets. Transparency helps moderate artificial scarcities and provides a richer understanding of the in-game economy. For instance, in traditional games like World of Warcraft, only the developers know the numbers and distributions of items, producing unintended scarcities that negatively impact gameplay. Tokenisation opens this information to the public, allowing for organic and fair in-game economies directly created by the players.
True ownership
Traditional gaming paradigms often deprive players of direct ownership of in-game assets. These items are tied to the game and can be lost if the player’s subscription lapses or the game shuts down. Direct ownership in a decentralised environment means players can move their assets between different games and platforms. This portability increases player retention and loyalty, as players feel a stronger connection to their items. The ability to transfer assets to new games provides a sense of continuity and investment, encouraging players to explore new titles within the same ecosystem.
Equally for game developers, direct digital ownership can be a game-changer. Players owning and trading their assets freely attracts a more dedicated player base and developers benefit from the viral nature of player-driven economies. Players who invest time and money into acquiring valuable items are more likely to bring their friends into the game, expanding the community organically. The game becomes much more popular than the creators ever imagined, similar to physical games like Magic: The Gathering or Cards Against Humanity. These games caught the users’ imagination and led to huge trading rings, with people buying and selling custom decks of cards all over the internet and on eBay. Tokenisation can bring this same impact to online games.
Player engagement
Decentralised gaming experiences are truly reshaping player engagement and interaction. A prime example is Upland, a blockchain-based game that maps the real world into the Upland virtual property system and allows players to buy, sell, and trade virtual properties.
Despite its relatively simplistic gameplay, Upland has attracted a large user base by offering a unique sense of digital ownership and real-world asset tokenisation. The game’s success at virtual land sales demonstrates the power of blockchain to create compelling, community-driven experiences that extend beyond web2 gaming.
Interoperability
Interoperability is another important concept gaining traction in the evolution of gaming experiences. Interoperability is one of many goals for the Web3 movement. It enhances user experience and utility across different platforms and applications, and allows in-game assets to be transferred between different games and ecosystems. This capability enhances player engagement and collaboration between game developers. Interconnectedness becomes a key theme here, strengthening relations across the entire gaming landscape as it continues to grow and innovate.
Gaming communities
Blockchain technology also encourages greater community involvement in game development. Players can contribute to the creation of in-game content, propose new features, and participate in governance decisions through decentralised autonomous organisations (DAOs), and more. Collaboration leads to more diverse and engaging game worlds, where players have a greater stake in the game’s success.
As technology continues to evolve, it will unlock new and exciting possibilities for gaming, transforming how we play, interact, and create. The future of gaming is decentralised, and it promises to be more inclusive, innovative, and community-driven than ever before.
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