Opinion Why are all current blockchain games considered fake demand?

Uncovering the Truth Examining the Controversy Surrounding the So-Called 'Fake Demand' of Current Blockchain Games

Author: Phyrex, Binance Square Creator Source: X @Phyrex_Ni

1. Pseudo demand of blockchain games: Contrary to the original intention of lowering barriers to entry

Currently, all blockchain games are considered pseudo-demands. Why is that? Because the original intention of games is for entertainment, unrelated to finance. The game industry has always strived to lower barriers to entry. Through the evolution of PC clients, web games, mobile games, and more, each evolution is aimed at occupying the largest “convenient space” for users to easily access the game.

However, blockchain games have gone in the opposite direction. Why is that? Because the group that accepts blockchain itself is a niche, and promoting an even smaller niche with a niche group only has one possible opportunity, which is high returns. As for where the returns of blockchain games are, we will discuss this later.

2. Evolution of traditional game payments: Based on user pleasure

In traditional games, apart from the continuous evolution of mediums, payment channels and methods have also been evolving. From prepaid cards, subscriptions, to the current item payments, they are all close to the essence of “playing” to ensure that users obtain maximum pleasure while playing. The essence of games is to make people happy. Some call games “electronic opium,” but the core is still about having fun. In the real world, while there are people who make money by playing games, all those who make money through games are without exception “fun” games.

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Consensus and payment issues: The payment challenge of blockchain games

This is similar to the consensus in the cryptocurrency sphere. Only with sufficient consensus will more people be willing to hold, and the act of holding increases liquidity. However, for blockchain games, payment is the biggest problem. Some believe that blockchain games have solved the payment problem, no longer needing to pay fees to Apple or Google channels, and using USDT to reduce the barriers to entry.

Payment problem in the cryptocurrency sphere: The biggest challenge in GameFi

Actually, the payment in the cryptocurrency sphere is the biggest problem in the entire GameFi process. Although some countries allow credit card deposits, in reality, USDT is only an intermediary. Currently, GameFi, whether it’s dual-token or single-token, advocates for their own token, which is the biggest barrier. Even with the use of USDT and USDC for payment, for non-crypto users, the entry barrier is still high, going back to the problem of 1-2.

3. Games as entertainment choices: Different from the perspective of professional players

For more players, games may not necessarily be a way to profit, but a choice for relaxation. Compared to professional gamers, ordinary people are the foundation of a game. The participation of more ordinary users represents a more enjoyable game. Only more enjoyable games can attract more players and generate a peripheral market for games, such as live streaming, esports, gold farming studios, etc. All of these are built on a foundation of being enjoyable. Being enjoyable is not a simple term; it requires professionalism and experience. Although there may be new game companies or products that sell well, the developers behind them definitely have sufficient industry experience. For these developers, money is not the most important factor.

The Essence of GameFi: Not for the Fun, but for the Coin

However, in the crypto world, the situation is quite the opposite. Crypto enthusiasts engage in gaming not primarily for the fun of it or to attract more external users to play. This is the fundamental essence and the most puzzling aspect. Despite claims from some GameFi developers that they’re creating triple-A games, why hasn’t any of them gained mainstream recognition? It’s a paradox. Though they may talk a good talk, because the essence of GameFi is not the game but the “Fi” (financial aspect), it’s not about having fun, but about coin speculation. In fact, GameFi doesn’t even qualify as a proper medium.

Considering the medium of gaming, the evolution of game engines aims to better represent the vision of game designers, making games more aesthetically pleasing and artistic. However, what problems does blockchain as a medium solve that the gaming industry cannot handle on its own? None, really.

Games themselves require centralized servers to operate, which doesn’t actually conflict with whether they are on the blockchain or decentralized or not. But in reality, GameFi is the most deceitful usage of the term “decentralized.” Without a game to begin with, what use does your in-game NFT serve? It’s akin to inheriting save files from traditional games.

In 2021 and 2022, mainstream gaming companies in China and Japan, tried to enter the GameFi space, but the results were far from ideal. Even in Japan, where payment methods are not an issue, games designed for players to make money were not well-received. In China, a single controversial article can make your GameFi project suffer a disastrous fate. Need I say more? It is utterly meaningless.

Therefore, at least for now, current GameFi projects cannot escape the shell of being mere financial schemes; the story of GameFi cannot continue without embracing its financial scheme nature. Although blockchain technology can benefit the gaming industry, not every blockchain-based project is a blockchain game. True blockchain integration requires computational power and storage support. And at present, even basic database integration into blockchain-based games presents challenges, not to mention the integration of game content itself.

That’s not even the most critical issue; more importantly, even with the upcoming spot ETF in the United States, the definition of a complete blockchain remains ambiguous. People still hold the belief that blockchain is a scam regarding the regulation and payment systems behind it. Instead of venturing into this imperfect field, it’s better to focus on doing your own thing. Those who have the ability can contribute to the development, while those who don’t can indulge in coin speculation. Blockchain games may be a good thing, but at least for now, GameFi is nothing more than a pile of garbage.

This does not mean that GameFi cannot make money. After all, as long as there is a token involved, there is the potential for profit, and these tokens are backed by professional investment institutions and liquidity providers. However, making money doesn’t equate to a promising direction for industry development. Therefore, the current GameFi trend resembles more of a coin speculation dressed in the disguise of a niche funding scheme with a game-like facade, ultimately leading to games that no one would care about.

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