The Paradox of Ownership in Blockchain Gaming: A Barrier to Growth

The annual survey conducted by Emfarsis in partnership with the Blockchain Game Alliance consistently shows that digital asset ownership is the primary benefit of blockchain gaming, with 71.1% of respondents ranking it as the top advantage. However, the majority of blockchain games have transitioned to free-to-play models, eliminating the need for players to own digital assets. This shift reflects the industry's effort to prioritize accessibility and appeal to a broader audience, including traditional gamers who are unfamiliar with Web3 technologies. The decision to make digital asset ownership optional has led to a contradiction, where the very feature that defines blockchain gaming also deters players. The 2024 BGA State of the Industry Report reveals that onboarding challenges and poor user experience are the biggest hurdles facing the industry, with 53.9% of respondents citing these issues. Furthermore, 33.6% of respondents believe that blockchain concepts are not fully understood, making it difficult for developers to convey the benefits of digital asset ownership. As a result, the industry is struggling to deliver on the promise of Web3-native innovations, such as interoperability, which remains largely theoretical. The notion of 'ownership' in Web3 is often exaggerated, and the reality is that even if players own an NFT, its utility and value often depend on centralized infrastructure. While there have been promising experiments with fully on-chain games and creative catalysts, the industry must focus on developing experiences that demonstrate the value of digital asset ownership from the outset. Ultimately, the challenge is to balance the need for accessibility with the need to showcase the benefits of digital asset ownership, ensuring that blockchain games can deliver on their unique promise.