What is Tokenized Gaming - Play, Trade and Earn

Technology has always paved the way for how we play and interact. The latest drive comes in a slightly different form: tokenization. It started as a financial security tool only to become the biggest force behind the rise of digital assets. Players today are deeply engaged in gaming platforms by creating micro economies, thus pushing the development of blockchain networks.  

From Locked Assets to True Ownership

For a long time, everything players earned or got in the game was stored on the developers’ servers. If they were to shut down the game, all skins, in game purchases and currency would go down with it. Players were never truly owners of anything.  

This scenario became a common occurrence a few years ago, and reputable developers decided to tackle the problem by introducing digital tokens. Every item in the game can be exchanged for tokens, a unique, secure representation of ownership stored on a blockchain. By holding in game tokens, players can buy, sell and trade their items across platforms. To put it simply, tokenization turned pixels into property, giving players control over their digital assets.  

The entertainment industry as a whole picked up on this trend, so now, besides gaming platforms, we have music, film, casino, and many more businesses using in house tokens to protect their art or give players more freedom with their assets. By encoding royalty rights as tokens or smart contracts, artists can receive payments instantly whenever their music is streamed. Similarly, online casinos use tokens that are not real money but can be used to play games, collect BTC casino bonus and prizes, and create whole new systems and micro economies that are deeply embedded on blockchain.  

P2E: Gaming Meets Income

Before tokenization, players were investing hours of play without the chance to turn that into some real world value outside of the game. The Play 2 Earn model flipped this into a gaming model that can actually bring in real profits to players. This new system took off quickly, fueling entire economies that are now mostly relying on gaming as a source of income.  

Tokenization skyrocketed in 2020, especially when some less developed regions of the world turned to gaming to earn crypto tokens that supported their families.  

Today, play and work have merged together to create a job that everyone loves to do, and earn a great income while playing. Games stopped being just a way to pass time, but a real business where time invested and skills have tangible value.  

Cross Platform Potential

In traditional gaming systems that were not based on blockchain, assets earned during play were tied to that platform. Once tokens were implemented into games, tokenized assets like NFTs and other exchangeable tokens, could be moved between platforms.

Imagine earning, winning or buying a rare rifle skin in a shooting game and being able to use it in a completely different game from the same publisher. In this case, that rifle skin exists on a blockchain in the form of a token, owned by a certain player. That asset could be showcased or even sold to other players. Tokenization made these items exchangeable, giving them a real value, and breaking the old system of isolated gaming communities.  

Some platforms are already experimenting with the concept of the metaverse, where every item could be seamlessly transferred across games. It’s not science fiction anymore but an emerging reality that will surely find its place in gaming in the upcoming years. 

Better Security for Gamers

The best side effect of tokenization is greater safety for players. Marketplaces and P2P trades have been overwhelmed with fraud, scammers, and identity theft for a long time. It kept many people from playing, let alone buying or selling anything online.  

Tokenization diminished the risks by replacing private information with tokens that are part of the blockchain.  

Today, players who buy or sell items within the game can keep their sensitive data hidden from the public. The transaction is recorded on blockchain, where it can’t be changed or manipulated, but it can be verified at any time, by anyone. This took the pressure off the platforms by giving players added security when dealing with high priced items. 

Esports and the Tokenization Boom

Tokenization also affected esports by giving fans special tokens that can be used to have a say in teams' strategies, unlock special rewards or be part of exclusive events. It’s a perfect way to connect fans with teams, driving the interest and engagement.  

On the other hand, gamers stand to profit from tokenization. Digital collectibles like player cards and exclusive tournament NFTs are becoming a central part of esports communities. This way, fans across the world can support their favorite teams and own a piece of gaming history.

Borderless gaming seems to be the endgame of tokenization, where players can take their game identities, items and tokens across platforms without losing in value. In the future, players’ inventory will follow them everywhere and become a part of their digital identity.