The reality is, the hype surrounding gaming blockchains is at a new high. Everyone's screaming about decentralization, ownership, and play-to-earn. But behind the tech-bro jargon, a much more pedestrian reality exists. It’s the inconvenient truth that everyone involved, from starry-eyed gamers to venture capitalists, is happy to ignore. Well, I’m here to brief you on what they want to keep secret.
Are You Really Decentralized Though?
The big appeal of blockchain gaming, at least in theory, is extreme radical decentralization, a gaming utopia without the corporate overlords who control the rules of engagement. Just look at what some of the most successful gaming–that’s right, gaming–chains out there. Ethereum? Crippled by gas fees that preclude the average gamer from participating. Binance Smart Chain? Fast and cheap, yes, but much more centralized. Have we really succeeded in escaping the tyranny of centralized decision making? Or are we just trading one set of overlords for another capable of yanking the plug or changing the terms at will?
Think about it this way: you wouldn't trade your mortgage lender for a loan shark, right? So why are we so prepped to celebrate technologies that promise decentralization but in practice concentrate decision making power in fewer hands? It’s akin to addressing the problem of an abusive boss by giving the role to someone even more abusive.
And don’t even let’s begin on the impending cow ownership mirage. While you may be fortunate enough to “own” an NFT sword in your metaverse game, what do you do when the game expires? Without those keys your “valuable” digital asset instantly turns into a completely worthless JPEG. The emperors wears no clothes, people.
Scalability's a Myth For Now
Scalability is the holy grail, and every blockchain is looking for it. Solana’s got the fastest transaction speeds around, Polygon is the leader in layer 2 solutions, and Hedera Hashgraph has the highest throughput—ever. They all want to be the chosen one.
None of them are truly ready for mass adoption. Solana collapses under stress, Polygon introduces needless technical wizardry, and Hedera Hashgraph is dogged by doubts about its governance. It's sort of like trying to run the Monaco Grand Prix on a go-kart track.
Look at Ethereum. But even with the promises of ETH 2.0, gas fees continue to plague the ecosystem. Axie Infinity, in its heyday, was the poster child of the play-to-earn movement. Its acceptance crashed once rewards started drying up but expenses remained high.
The reality is that today’s blockchain tech simply isn’t prepared to scale within the pressures of a mainstream gaming audience. We’re still in the dial-up phase of blockchain gaming, acting like we have fiber optic.
Rug Pulls, Scams, Environmental Guilt
Aside from the ethical implications, there’s a lot to cover on the dark side of blockchain gaming. The space is currently inundated with scams, rug pulls, and harmful environmental impacts.
Remember the Bored Ape Yacht Club craze? Hype, speculation, and a whole lot of money changing hands for pixelated monkeys. Fast forward to the many thousands of NFT projects that similarly disappeared, unannounced, overnight, with investors now left solely in the wake of expired dream lives. If it sounds like the Wild West, that’s because it is—and the sheriffs are largely missing in action.
And then there's the environmental elephant in the room: Proof-of-Work blockchains like some versions of Ethereum consume massive amounts of energy. After all, playing a relatively low carbon sport like WWE shouldn’t be driving the world to climate catastrophe, right? Tezos' Proof-of-Stake approach is a step in the right direction, but it's still a drop in the ocean.
- Protect yourself:
- Do your research before investing in any blockchain game or NFT project.
- Be wary of projects that promise unrealistic returns.
- Consider the environmental impact of the blockchain you're using.
- Demand better standards:
- Support projects that prioritize security, transparency, and sustainability.
- Call out scams and unethical practices.
- Advocate for responsible regulation of the blockchain gaming space.
It’s time to hold these high profile projects accountable and demand something much better. If not, blockchain gaming will come to be defined by environmental devastation and financial catastrophe.
The Real Opportunity.
Don’t get me wrong, despite all this doom and gloom, I’m not a blockchain gaming hater. The core technology itself can indeed be revolutionary for the industry. The real issue is that we’re measuring success at the wrong levels. Rather than pursuing transient profits and quick-fix Pipe Dreams, it’s time to invest in fostering a long-term, more sustainable, equitable, and secure ecosystem.
By prioritizing community governance over corporate control. By building truly scalable and energy-efficient blockchains. By fostering transparency and accountability. By making games that are genuinely enjoyable to play — whether or not a blockchain is involved.
The real future of blockchain gaming isn’t about making a quick buck. It’s making an alternative digital/crypto paradigm where ownership vs. access is the new norm, that connects economic empowerment and community building. Now it’s time to dispel the hype and get down to the real work of building the future we do want to see. Perhaps only then, will the brutally honest truth not be so brutal after all.
