Decentralized gaming involves building games on decentralized systems, such as a blockchain, and giving gamers a much more rewarding experience than the traditional gaming industry is capable of. CryptoKitties was the earliest blockchain game built on Ethereum. Since then, gaming and game finance (GameFi) projects like Axie Infinity have taken the crypto arena by storm.

‍Key Components of Decentralized Gaming

‍●       Blockchains: Blockchain networks are integral to decentralized gaming as they serve as the hosts by recording transactions, distributing rewards, and executing actions via smart contracts. Due to blockchain technology, gamers can access the public records of actions and transactions no matter how many have been carried out during a game.

●       Cryptocurrency: In traditional games, players made in-game purchases with credit cards or regular payment methods. In decentralized gaming, purchases and transactions are made in cryptocurrency. Most blockchain games have their in-game token of value, which is the instrument used to buy assets, earn rewards, or enter the game properly. Decentralized gaming merges games and DeFi, creating GameFi.

●       NFTs: Not all blockchain games integrate the non-fungible token standard, but this is quickly becoming popular in the GameFi world. NFTs are digital assets and blockchain games are structured so that the player’s in-game purchases could be NFTs, which involve full ownership and control being handed to the players of these tokens. The Algorand blockchain supports the creation of NFTs.