What is Blockchain Gaming? Beginner’s Guide to the Future of Play-to-Earn

Blockchain gaming is shaking up the gaming world by letting players truly own and trade their in-game items while earning real money through play-to-earn blockchain games.

Unlike traditional games, where developers control everything, crypto games give players the freedom to use their assets across platforms and even cash them out. With billions of dollars locked in blockchain games and millions of people playing daily, this space is growing fast.

This crypto gaming guide shows why blockchain gaming is more than just a trend—it’s changing how games are played and valued.

What is Blockchain Gaming and How Does It Work? Summary

Blockchain gaming is changing how we think about video games by giving players more control over their items and introducing new ways to earn money while playing. It’s all about creating secure, open systems where your in-game assets can have real-world value.

This fresh approach is attracting more players and developers, turning gaming into a mix of fun, ownership, and opportunity. As it grows, blockchain gaming is setting the stage for a new era in digital entertainment.

What is Blockchain Gaming?

Blockchain gaming is changing the way we experience digital entertainment, bringing in decentralized technologies that give players actual ownership of their in-game items and even the chance to earn real-world rewards.

Unlike traditional games, where developers control your items, blockchain gaming uses tools like decentralized ledgers and NFTs (non-fungible tokens) to make in-game assets like characters, skins, weapons, and virtual real estate truly yours. This means you can trade, sell, or move them across different platforms, creating exciting virtual economies.

The industry is growing fast. A report by Research and Markets shows the global blockchain gaming market was worth around $8.5 billion in 2023 and could skyrocket to $314.3 billion by 2030, with an incredible annual growth rate of 67.6%.

This expansion is further supported by a shift in platform usage; the World Economic Forum reported that blockchains like ImmutableX, Polygon, and Flow became more popular because Ethereum couldn’t handle all the demand. This shows that blockchain gaming is spreading across different platforms.

According to a survey by the Blockchain Game Alliance (BGA), 52.1% of respondents expect at least 20% of the gaming industry to adopt blockchain within 12 months.

Supporting this optimism, research reveals that Ethereum, Solana, Polygon, and Binance Smart Chain collectively host almost 70% of all blockchain games, with Binance Smart Chain leading at 36%. Despite this, Ethereum dominates in NFT transaction volume, making it the primary platform for gaming activity.

This growth is also reflected in broader market trends. Crypto.com projects that by 2030, the global gaming market could be worth between $323 billion and $593 billion, with blockchain gaming contributing 15–20%, translating to $65–$90 billion. This underscores blockchain’s rising significance in the gaming sector.

Several trends are driving this growth. Play-to-earn (P2E) models let players earn cryptocurrency or valuable NFTs just by playing, turning gaming into a way to make money. NFTs also add uniqueness and real value to in-game items, which draws in players and investors alike.

In short, blockchain gaming is reshaping the industry by combining fun with decentralized finance, giving players more control over their digital assets and opening up new ways to participate in virtual economies. The growth is driven by more investment and new business ideas that keep players excited and engaged.

How Does Crypto Gaming Work?

Here’s how it works: blockchain technology acts as a secure, transparent system that tracks every transaction and ensures players’ assets are safe. NFTs represent unique in-game items—like characters, weapons, or virtual land—that players can trade or sell, even outside the game. Cryptocurrencies serve as the in-game money, making it possible for players to earn, spend, and exchange value both within and outside the gaming world.

When it comes to how game economies work, there are two main types; closed and open economies.

Closed economies keep everything inside the game—items and currencies can’t be traded outside, and developers control the whole system. Players can earn or buy items, but they’re only useful within that game.

Open economies, on the other hand, let players take their assets out of the game. With blockchain technology, players can trade or sell items in external marketplaces, giving them more control and the ability to earn real-world value.

Blockchain gaming focuses on open economies, giving players more freedom and opportunities to profit from their gaming experience. It’s not just about playing for fun anymore—it’s about creating value and being a part of a broader virtual economy.

In short, crypto gaming is changing how we think about video games. It’s about giving players real ownership, creating transparent systems, and offering new ways to benefit financially while doing what they love.

Understanding the Mechanics of Blockchain Gaming

Blockchain gaming is changing the game—literally. It’s giving players a real say in how games are developed and managed by using governance tokens. This means the community, not just the developers, has a seat at the decision-making table.

What Are Governance Tokens?

Governance tokens are the key to this shift. These tokens let players influence decisions about the game, like introducing new features, tweaking mechanics, or reworking the in-game economy. Essentially, they make players co-creators of the game’s future.

As Chainlink explains, “Tokens don’t just represent in-game currencies and items… making tokens the de facto standard within games flips the status quo of digital ownership.”

How It Works

Players can earn governance tokens through gameplay achievements, community contributions, or purchases. Once you have tokens, you can propose or vote on decisions that shape the game. The more tokens you hold, the greater your voting power. This system creates a collaborative approach where developers and players work together to enhance the game.

Why It’s a Game-Changer

• Stronger Community Ties: Players who feel heard are more likely to stay engaged and loyal to the game.
• Transparent Decision-Making: All proposals and votes are recorded on the blockchain, ensuring fairness.
• Shared Goals: Developers and players are aligned to make the game better for everyone.

The Challenges

Of course, token-based governance isn’t without its hurdles:

• Low Participation: Not everyone with tokens may vote, leaving important decisions to a small group.
• Unequal Influence: Players with more tokens can dominate the process, potentially sidelining others’ voices.

While there are challenges to navigate, the benefits—like deeper engagement and community-driven growth—make it a promising step forward for gaming. With this model, blockchain games can truly reflect the vision of the people who play them.

Difference Between Blockchain Gaming and GameFi

The difference between blockchain gaming and GameFi comes down to their focus and purpose. Blockchain gaming uses blockchain technology to enhance gaming experiences, like giving players true ownership of in-game items through NFTs and ensuring authenticity.

GameFi, short for “Game” and “Finance,” takes things further by combining gaming with decentralized finance (DeFi), creating play-to-earn (P2E) models where players can earn financial rewards while they play.

Types Of Blockchain Games

Blockchain games have diversified into several categories, each offering unique experiences:

• NFT Games: Use non-fungible tokens to represent in-game items, giving players true ownership and enabling secure trading of assets.
• Metaverse Games: Offer expansive virtual worlds on the blockchain where players can interact, socialize, and engage in economic activities.
• Play-to-Earn (P2E) Games: Reward players with cryptocurrency or NFTs through gameplay, providing financial incentives for participation.

Now, let’s look closer at these popular blockchain games.

NFT Games

NFT games have revolutionized the gaming industry by allowing players to own, trade, and sell unique digital assets verified through blockchain technology. These games are reshaping how players engage with virtual economies, offering a level of ownership and monetization never seen before.

For example, Axie Infinity was one of the first to popularize the play-to-earn model, enabling players to breed and battle fantasy creatures while earning real-world value. Despite its challenges with market fluctuations and security, it remains a cornerstone of NFT gaming.

Another standout is Gods Unchained, a trading card game where players own their cards as NFTs. As of mid-2023, it became the top NFT collection with over 328,000 sales in a single month.

Then there’s The Sandbox, which combines creativity and blockchain technology to let players build and monetize their gaming experiences, driving growth in the metaverse ecosystem.

The global market for in-game NFTs was valued at $3.64 billion in 2022 and is projected to grow to $15.46 billion by 2027. Blockchain gaming also accounted for 30% of NFT market activity in early 2024, attracting around 2.1 million daily unique active wallets. These numbers illustrate how NFT gaming is becoming an essential part of the broader blockchain industry.

Metaverse Games

Metaverse games take the concept of immersive virtual environments to the next level. These games allow players to socialize, build, and interact within expansive digital worlds that often mirror real-world activities.

Roblox, for instance, has evolved beyond a gaming platform to become a hub for user-generated experiences, boasting over 70 million daily active users as of 2024.

Decentraland stands out as a decentralized virtual world where users can buy, develop, and trade virtual land, governed by a DAO, and it’s increasingly being used for virtual events and exhibitions.

Fortnite, once known as a battle royale game, now doubles as a metaverse platform, hosting virtual concerts and interactive experiences for millions of players worldwide.

The metaverse market is growing rapidly, with over 600 million active users globally as of 2024, and is expected to reach 2.63 billion by 2030. In terms of revenue, the market is set to grow from $74.4 billion in 2024 to a staggering $507.8 billion by 2030, driven by a mix of gaming, social experiences, and virtual commerce.

Play-to-Earn (P2E) Games

Play-to-earn (P2E) games offer a groundbreaking model where players can earn tangible rewards for their in-game activities. These games blend entertainment with economic incentives, making gaming more accessible and rewarding.

Alien Worlds is a leading example, creating a decentralized metaverse where players can mine cryptocurrency and participate in governance through DAOs.

Splinterlands, a blockchain-based card game, allows players to earn its native cryptocurrency through strategic battles, while STEPN has innovated further by combining physical fitness with blockchain rewards, paying users for walking or running.

The P2E gaming sector is growing exponentially. By 2024, blockchain games attracted over 2.8 million daily users and accounted for 28% of all decentralized application activity.

Looking ahead, the Web3 gaming market is expected to expand from $4.6 billion in 2024 to $65.7 billion by 2027, reflecting its potential to dominate the future of online entertainment.

How Does Play-to-Earn Work?

Play-to-earn (P2E) games let players earn real-world value through gaming. Instead of just playing for entertainment, these games allow you to gain cryptocurrency or valuable digital items while having fun.

They rely on blockchain technology, which ensures that anything you earn or own in the game truly belongs to you and can be traded or sold outside the game.

In P2E games, players typically earn rewards by engaging in gameplay, such as completing tasks, winning battles, or progressing through levels. These rewards might come as in-game tokens, which can often be converted into cryptocurrencies or even real money.

Some games also reward players with digital assets like characters, items, or land, which are represented as NFTs (Non-Fungible Tokens). These NFTs are unique and securely stored on the blockchain, giving you full ownership and the ability to trade or sell them in marketplaces.

Unlike traditional games, where your achievements and purchases stay locked within the game, P2E games create an open economy. For example, if you acquire a rare item, its value might increase based on demand, and you can sell it to other players.

Some games also offer options to earn through staking, where you lock up your tokens or NFTs to generate additional rewards, like earning interest in a savings account.

One of the key reasons P2E games are so revolutionary is the sense of ownership they provide. Players aren’t just consumers anymore—they’re participants in a virtual economy. However, like any opportunity, P2E gaming comes with challenges.

The value of tokens or items can be unpredictable, and security risks like hacking are always a concern in the blockchain space. Despite these issues, the ability to earn while playing has made P2E games a popular and exciting trend in gaming.

Benefits of Play-to-Earn

Play-to-Earn (P2E) games are changing the way people think about gaming by combining fun with real financial rewards, thanks to blockchain technology.

Here’s how they stand out:

1. Earn While You Play: P2E games let players earn cryptocurrencies and NFTs by completing tasks, winning battles, or hitting milestones. These digital rewards can be traded or sold for real money. In some cases, like with Axie Infinity, players have even turned gaming into a full-time income source, especially in regions where job opportunities are limited.
2. True Ownership of In-Game Items: Unlike traditional games where items are locked within the game, P2E games give players actual ownership of their digital assets through blockchain technology. This means you can trade, sell, or keep your in-game items outside the game’s ecosystem, creating a free and open market.
3. Strong Communities: P2E games bring players together. Whether it’s trading, teaming up for challenges, or voting on game changes, these communities offer a shared purpose and a deeper connection to the game.
4. Introducing Blockchain to More People: By weaving in elements of decentralized finance (DeFi), P2E games act as a gateway to blockchain technology. Players get hands-on experience with crypto and DeFi, helping drive broader adoption of these technologies.

The screenshot below by PlayToEarn shows a ranking of the top blockchain games from PlayToEarn.com. It lists games like “The Sandbox” and “Axie Infinity,” detailing their genres, supported blockchains, and device compatibility. Each game’s status (e.g., live or beta), NFT integration, and free-to-play availability are highlighted.

The P2E Score reflects weekly popularity, with “The Sandbox” leading at 2709 (+12.95%). Trend graphs show performance changes over the past week, helping users track game activity and growth.

P2E games are more than entertainment—they’re a way to earn, connect, and explore the future of digital finance.

Steps to Get Started in P2E Gaming

Play-to-earn gaming offers a unique opportunity to enjoy gaming while earning real-world rewards. To embark on this journey, follow these essential steps:

Step 1 – Set Up a Crypto Wallet

A crypto wallet is like your digital bank account—it’s where you’ll store the rewards you earn from P2E games. Popular wallets like Best Wallet, MetaMask or Trust Wallet are easy to set up and widely used.

• Why it’s important: You’ll need a wallet to send, receive, and hold tokens from the game.
• Pro Tip: Write down your recovery phrase somewhere safe. If you lose it, you lose access to your wallet and funds.

Step 2 – Research and Choose a P2E Game

There are tons of P2E games out there, each offering something different.

Some are strategy-based, and others are more action-packed or casual.

• What to look for: Find a game you actually enjoy playing. Also, check out its earning potential and whether the community seems active and supportive.
• Examples: Games like Axie Infinity, Splinterlands, or The Sandbox are popular, but explore to find what fits your vibe.

Step 3 – Understand the Game’s Economy

Every P2E game has its own way of rewarding players, usually with tokens or digital assets. These rewards often have real-world value.

• What you need to know: Learn how you can earn rewards, what they’re worth, and how to trade them. For example, can you sell in-game tokens for Bitcoin or real cash?
• Why it matters: Knowing this will help you decide if a game is worth your time. Plus, you’ll know how to cash out your earnings when needed.

Step 4 – Start Playing and Earning

Now it’s time for the fun part—playing! Set up your account, connect your wallet, and dive in. Depending on the game, you might earn by completing tasks, winning battles, or trading items.

• Tips for success: Be consistent, stay updated on game news, and don’t spend more than you can afford on in-game purchases.
• Remember: Start small, especially if you’re new. Focus on learning the game mechanics and building up your rewards gradually.

Top Wallets for P2E Gaming

If you’re diving into Play-to-Earn (P2E) gaming, the first thing you need is a good crypto wallet. It’s your gateway to storing and managing the rewards, tokens, and assets you’ll earn while playing. A wallet isn’t just a tool for holding crypto; it’s your security blanket, ensuring your hard-earned assets are safe and accessible.

A solid crypto wallet comes with built-in protections, like encryption and secure backups, to keep your funds safe from hackers or mishaps. Plus, with P2E games often operating across different blockchain networks, a wallet with multi-chain compatibility can make your gaming experience smoother and more flexible.

Here are some of our top picks:

Best Wallet

Type:

Hot Wallet + DEX

Read Review

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Exodus

Type:

Web wallet

Read review

Visit Site

Zengo

Type:

Mobile wallet & Exchange

Read review

Visit Site

Ellipal

Type:

Hardware Wallet

Read Review

Visit Site

Trezor

Type:

Hardware wallet

Read review

Visit site

1. Best Wallet: A high-performing wallet offering top-tier security and support for multiple blockchains—ideal for serious gamers.
2. Exodus: Perfect for those who want simplicity, with an easy-to-use interface and built-in exchange features.
3. Zengo: Great for beginners, thanks to its keyless security system, which is simple yet effective.
4. Margex: A secure, beginner-friendly option that combines wallet features with trading tools for added versatility.

See also: Best Crypto Wallets in 2024: Bitcoin and Altcoin Wallet App Reviews

Some Real-World Examples of Blockchain Games

Blockchain gaming has introduced new ways for players to own and monetize their in-game assets. Below are some of the most well-known projects in the space, each making a unique impact on the crypto gaming world.

CryptoKitties

CryptoKitties was one of the first blockchain games launched in 2017 by Axiom Zen. The game lets players breed, collect, and trade virtual cats represented as NFTs. Its purpose was to make blockchain technology approachable through a fun, engaging platform.

By giving players ownership of digital collectibles, it solved the issue of asset scarcity and authenticity in gaming. At its peak, CryptoKitties had such high traffic that it congested the Ethereum network, with around 30% of all Ethereum transactions being related to the game.

According to BitDegree’s NFT data, CryptoKitties, an Ethereum-based dApp, recorded 1,700 sales over the past 30 days as of December 2024. It had 481 active users. The platform is showing growth, with trading volume increasing by 100% compared to the previous month.

Decentraland

Decentraland is a virtual world where users can create and monetize experiences and content on their own virtual land. Built on Ethereum, it gives users control of their assets via NFTs. The platform addresses the lack of ownership and decentralization in traditional virtual spaces.

With over 1 million registered users and major events like Metaverse Fashion Week, Decentraland has grown steadily, attracting creators, brands, and crypto enthusiasts alike.

Decentraland made 426 sales in the last 30 days as of December 2024, with 163 active users and a trading volume of $27. However, it experienced a decline, with trading volume dropping by 81.76% during this period.

Gods Unchained

Gods Unchained is a trading card game that gives players true ownership of their cards as NFTs, which they can buy, sell, or trade freely. Its goal is to bring transparency and fairness to digital card games, addressing the issue of centralized control.

The game has consistently expanded its player base with new features and cards, becoming one of the leading blockchain-based card games.

Gods Unchained ranks #1869 in overall dApp user rankings and #270 in the Games category as of December 2024.

The game processed 52 transactions over the past month, showing a slight 1.89% decrease compared to the previous month.

The Sandbox

The Sandbox empowers players to create, own, and monetize 3D gaming content using NFTs and its SAND token. The game addresses the lack of creative freedom and ownership on traditional gaming platforms.

With over 16 million registered users and big-name partnerships, The Sandbox is one of the most active blockchain gaming platforms, bringing creators and gamers together.

The Sandbox Marketplace, an Ethereum-based dApp in the Marketplaces category, ranks #212 overall and #12 in its category as of December 2024.

The platform handled 220 transactions in the past month, showing a 37.32% decline compared to the previous month.

Axie Infinity

Axie Infinity popularized the play-to-earn model, where players can collect, breed, and battle creatures called Axies—unique NFTs that can earn players cryptocurrency. It provides economic opportunities for players, particularly in regions with limited job prospects.

Axie Infinity has grown into a massive ecosystem, continually adding new features and gameplay modes to keep players engaged.

Axie Infinity, ranks #21 in overall user rankings and #6 in the Games category as of December 2024. In the last 30-days, the game processed 11,560 transactions, reflecting a significant 136.47% increase.

How is the Gaming Industry Transforming Using Blockchain Technology?

Blockchain is changing the way we think about gaming by giving players more control, enhancing security, and opening up new opportunities to earn and trade.

Traditional games often limit players to using items and assets within the game, with little transparency or ownership. Blockchain flips this model by creating a more open, player-focused ecosystem.

Blockchain brings new ideas and features to the gaming world:

• True Ownership: Players can really own their in-game assets thanks to NFTs.
• Decentralization: It removes the need for middlemen.
• New Revenue Streams: Play-to-earn games offer gamers new ways to earn money.

Secure and Transparent Transactions

Blockchain’s technology makes transactions secure and verifiable. Whether you’re trading an NFT or buying an in-game item, you can be confident that the process is safe and transparent. There’s no need to worry about fraud because every transaction is recorded on the blockchain and can be traced back to its source.

Enhanced Security

Unlike traditional gaming platforms, which can be hacked or manipulated, blockchain offers a decentralized structure that’s much harder to breach. This protects player accounts, data, and assets. IBM has highlighted blockchain’s ability to tackle common security issues, ensuring a safer environment for gamers.

Improved User Experience

Blockchain makes it easier to carry your gaming identity across multiple games. For example, you can use your NFT skins, weapons, or characters in different compatible games. This creates a seamless experience where your progress and assets follow you.

Experts have varied perspectives on blockchain gaming and its future. While Phil Spencer, Head of Xbox, expressed caution, noting that “some of the creative that I see today feels more exploitative than about entertainment,” others see blockchain as a transformative force in gaming.

Eric Bravick, CEO of The Lifted Initiative, highlighted its potential to foster deeper player engagement, stating, “The game’s success at virtual land sales demonstrates the power of blockchain to create compelling, community-driven experiences that extend beyond web2 gaming.”

Similarly, Eli Ben-Sasson, co-founder of Starknet, spoke on its practicality, emphasizing, “Blockchain gaming isn’t just a novelty; it solves real problems faced by regular people who love to play games.”

These perspectives reveal a mix of skepticism and optimism, underscoring both the challenges and opportunities blockchain brings to the gaming landscape.

Verifications

One big issue in traditional games is proving the rarity or authenticity of an item. Blockchain solves this by providing a transparent system that verifies ownership and rarity. If you own a rare NFT item, everyone knows it’s legit because it’s recorded on the blockchain.

Trading Resources

Blockchain enables a global marketplace where players can securely trade in-game resources for real money or other assets. On top of that, players earn rewards that often have real-world value, turning gaming into a more financially rewarding hobby—or even a job for some.

Earning Rewards

Blockchain facilitates reward systems where players earn tokens or assets with real-world value. This incentivizes gameplay and offers tangible benefits, making gaming more rewarding.

Creating Integrated Gaming Profiles

Imagine having one gaming profile that tracks your achievements, items, and progress across all your games. Blockchain makes this possible by linking all your data to a single profile. It’s a huge step forward in making gaming more personal and connected.

Blockchain Gaming Pros and Cons

What Does the Future Hold for Blockchain Gaming?

The future of blockchain gaming looks incredibly promising, with projections and recent data pointing to rapid growth and widespread adoption.

According to a report by Fortune Business Insights, the blockchain gaming market was valued at $128.62 billion in 2022 and is expected to hit $614.91 billion by 2030, growing at a compound annual growth rate (CAGR) of 21.8%. This surge reflects the transformative potential of blockchain in gaming.

Another report has even more optimistic view on blockchain gaming growth. The report projects that the global blockchain gaming market will grow from $14.8 billion in 2024 to $1,172.8 billion by 2033, with an astonishing CAGR of 62.59% between 2025 and 2033.

Recent stats highlight this trend further. Investment in blockchain gaming is also skyrocketing—$1.1 billion was invested in Q2 2024, a massive 314% increase from the previous quarter and a 17% rise compared to the same period in 2023.

Additionally, in Q3 2024 alone, blockchain gaming attracted 4.4 million daily unique active wallets, making up 26% of all decentralized application (dapp) activity. This shows that more players are engaging with blockchain-based games as these platforms continue to evolve.

The stats don’t lie—blockchain gaming is on a trajectory to redefine the industry. With its focus on player ownership, community-driven governance, and new earning opportunities, the future isn’t just bright—it’s revolutionary.

Conclusion: What is Blockchain Gaming

Blockchain gaming is reshaping the gaming space by giving players real ownership of in-game assets and creating new ways to earn and trade value through crypto tokens. Gaming projects in this space use blockchain to power transparent, secure systems that let players truly control their items and participate in thriving virtual economies.

With a growing user base and innovative use cases like play-to-earn models and NFT ownership, blockchain gaming is building a strong gaming community. As these technologies evolve, the blockchain gaming space is set to expand, bringing exciting opportunities for players and developers alike.

See Also: What is DeSci: Why It Could Be Crypto’s Next Big Narrative

Frequently Asked Questions

References

• “Blockchain Gaming: Part One.” World Economic Forum, Dec. 2022, https://www.weforum.org/stories/2022/12/blockchain-gaming-part-one.
• “2023 Industry Report.” Blockchain Game Alliance, 2023, https://www.blockchaingamealliance.org/bga-2023-industry-report/.
• Fong, David. “Blockchain in Gaming: Challenges and Opportunities.” Claremont McKenna College Senior Theses, 2023, scholarship.claremont.edu/cmc_theses/3192/.
• “Blockchain Gaming: Trends and Opportunities.” Crypto.com Research, https://crypto.com/research/blockchain-gaming-trends-opportunities.
• “Blockchain Gaming Education.” Chainlink Labs, https://chain.link/education/blockchain-gaming.
• “NFT Statistics.” Do It Software Blog, https://doit.software/blog/nft-statistics.

Disclaimer

Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
99Bitcoins may receive advertising commissions for visits to a suggested operator through our affiliate links, at no added cost to you. All our recommendations follow a thorough review process.

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Anthony Clarke

Crypto Writer

Anthony Clarke's crypto journey began in 2017, sparked by a discovery on Quora. After purchasing Bitcoin and Verge as his first cryptocurrencies, he developed a deep interest in the emerging world of blockchain technology. This led him to begin writing... Read More

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