Blockchain in Gaming Market: Leveraging Smart Contracts for Game Development

In 2022, the global blockchain in gaming market was valued at USD 4.83 billion and is projected to grow at a compound annual growth rate (CAGR) of 68.3% from 2023 to 2030. Blockchain technology, a decentralized and distributed digital ledger, facilitates secure transactions and record-keeping. This innovation has significantly transformed the gaming experience for both developers and players, enabling the use of cryptocurrencies and Non-fungible Tokens (NFTs) for in-game purchases. A notable example is Axie Infinity, a blockchain-based game that leverages Ethereum for in-game transactions and boasts a global player base in the millions.

The market’s growth is largely driven by the demand for a secure, transparent, and decentralized gaming environment. Blockchain introduces transparency by maintaining a public ledger of all transactions, which helps players trace ownership and transfer of in-game assets. This ensures fairness and allows players to conduct transactions directly, without relying on intermediaries.

In recent years, the blockchain gaming sector has witnessed a surge in investments and funding, fueled by the rising popularity of decentralized games and assets, as well as the unique opportunities they offer. For example, in October 2022, Horizon Blockchain Games raised USD 40 million to expand its operations and diversify its offerings. The company focuses on developing Ethereum-based games and experiences.

Horizon aims to scale its Sequence platform—an all-in-one developer toolkit and smart wallet—to simplify the creation of Web3 games and applications. The company is also working to broaden the audience for its flagship game, Skyweaver, by adding new content. Additionally, it plans to launch Niftyswap, a marketplace designed for Semi-fungible Tokens (SFTs).

Artificial Intelligence (AI) and Machine Learning (ML) are also being integrated into blockchain gaming. These technologies enhance security by identifying and preventing fraudulent activities, such as bot usage or fake accounts. Furthermore, AI and ML provide personalized experiences by analyzing player preferences and behavior to recommend games and rewards. They also help developers improve game design by evaluating gameplay data and user feedback.

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Regional Insights

In 2022, the Asia Pacific region led the global market, accounting for over 26.0% of total revenue. This growth is driven by the region’s high internet and mobile penetration and increasing interest in cryptocurrencies among both consumers and investors. These factors create an ideal environment for the adoption of blockchain gaming, which relies heavily on digital assets.

For example, in January 2023, the Asia Blockchain Gaming Alliance (ABGA)—a non-profit dedicated to advancing blockchain technology in gaming—launched a USD 45 million eco fund. The fund aims to support the growth and development of blockchain game developers and companies in the region.

Key Players in the Global Blockchain in Gaming Market:

• Dapper Labs, Inc.

• Sky Mavis

• Splinterlands

• Animoca Brands Corporation Limited

• Immutable

• Uplandme, Inc.

• Illuvium

• Mythical Inc.

• ROKO GAME STUDIOS

• Autonomous Worlds Ltd.

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