The cryptocurrency market has suffered some devastating losses this year. Cryptocurrency prices have plummeted, sending fear into the hearts of investors due to the onset of the “crypto winter.”
However, this does not spell doom for cryptocurrency and blockchain technology as a whole. Some pillars of blockchain technology, such as blockchain gaming, remain a representation of the bright future that blockchain continues to have.
When blockchain and NFTs were first introduced, they were largely misunderstood by the public. The average consumer could not understand what benefit a stream of code connected to a JPEG image would offer them. Initially, many people purchasing NFTs were doing so as a highly speculative investment or with the primary intention of supporting the artist who created them. Yet, this is no longer the limitation of NFTs’ utility.
The evolution of blockchain technology in gaming
Evolutions within blockchain technology have allowed it to develop far beyond the conceptual stage. Utility NFTs have taken the world by storm, offering their holders some form of tangible value in the real world as well as the virtual, online one. Giving users a way to use their NFTs, rather than just owning a piece of code in the blockchain, has spearheaded the digital asset class’s ability to become mainstream.
“Gamers were some of the earliest adopters of NFTs, as they understood the value of something like a non-fungible asset,” explains Hironobu Ueno, CEO of double jump.tokyo. “After all, in-game currency is a multibillion-dollar industry. Some of the most popular games racking up as much as $5.8 billion in in-game sales annually, all for something that often has little more than a cosmetic effect in the in-game world.”
Some of the first utility NFTs were developed for the gaming world, allowing gamers to play with their NFT as their in-game avatar. Given how possessive gamers tend to be over their avatar’s in-game image, it makes sense that they would want the exclusive ability to use their avatar’s design in the game. Simultaneously, for the gamer, investing in such an asset allows them to be much more immersed in the world of their favorite game.
This space is where double jump.tokyo has thrived. The company is a blockchain service provider that partners with game developers to help them develop blockchain games and integrate blockchain technology into their gaming operations. They have worked on some of the most popular blockchain games on the market, including My Crypto Heroes, Brave Frontier Heroes, and My Crypto Saga, having seen firsthand the viability of crypto gaming as an application of blockchain technology.
Blockchain gaming amidst the crypto winter
Blockchain gaming has been seen as immune to the crypto winter thanks to the enduring popularity of video games. During the pandemic, the popularity of gaming rose significantly as a form of entertainment, as other avenues of entertainment that people would typically turn to were closed due to the global shutdown. And with a worldwide pivot to more remote work-driven lifestyles during and after Covid, many people are spending more time at home, where they can play games during their lunch break or during the time they would have been commuting to the office.
Indeed, video gaming has become more than just a way to enjoy yourself or relax after a long day — it is becoming a fundamentally social activity. People from all over the world are using video games to connect with one another, forming a community of like-minded people united under their passion for the game’s world. This feeling of community is fundamental to the success of NFTs and other blockchain projects, as community support allows these projects to thrive.
“An NFT project cannot survive without there being a community that demands its existence,” explains Ueno. “The NFTs and tokens you hear about that don’t ever get off the ground fail due to the lack of community support behind them. By targeting the gaming community, you are tapping into an invaluable resource: an audience that has already come together to support their love for gaming worlds. You are giving them something they want, which is what it takes to succeed.”