Louis-Antoine Etchian is director of technology at web3 analytics company Helika.

The gaming industry has traditionally relied on centralized servers and authorities to control in-game assets. Players may invest countless hours, and sometimes money, into acquiring items, but their ownership has always been subject to the rules of the game’s creators. With the rise of blockchain technology and smart contracts, however, we are witnessing a shift towards true player ownership in
gaming.

The concept of “trustless” ownership is revolutionizing the way players control, trade, and interact with in-game assets.

What is trustless ownership?

Trustless ownership, in the context of blockchain gaming, refers to the ability of players to truly own their digital assets without relying on a centralized authority to validate or manage them. Through the use of smart contracts, ownership is secured on the blockchain, making assets immutable and allowing players to have full control over their items. Once a player owns an item, they can transfer or trade it as they wish, without the risk of losing it due to a change in the game’s rules or a shutdown of the server.

Smart contracts are key here. They are self-executing contracts where the terms of the agreement between buyer and seller are directly written into lines of code. This allows for transparent, automatic transactions that don’t rely on intermediaries. In gaming, this means that ownership, transfers, and trades can happen seamlessly and securely, providing players with unparalleled freedom and control over their digital assets.

It’s also important to understand that not all smart contracts have the same goals and flows. While smart contract A might give full freedom to the users, smart contract B might have more rules based on aspects such as time, transfer volume, consent from the game developers, and other business rules. As with any contract, it’s important to fully understand the terms and conditions before signing.

How trustless ownership empowers players

The concept of true ownership through smart contracts offers a range of advantages for players:

• Asset security: With smart contracts, once a player acquires an in-game asset, it is recorded on the blockchain, ensuring that the item is secure and cannot be altered, lost, or taken away by the game’s developers. This level of security allows players to invest in games with the confidence that their assets are safe from external changes.

• Interoperability across games: One of the most exciting aspects of trustless ownership is the potential for asset interoperability. A player might earn an item in one game but be able to use or trade that item in another game, creating a broader ecosystem where assets can move freely across different game worlds. This breaks down the silos of traditional gaming and enables new levels of engagement and player-driven economies.

Challenges and opportunities

While the concept of trustless ownership is game-changing, it is not without its challenges. One key issue is the need for wider adoption of blockchain technology across the gaming industry. Currently, only a fraction of games are built on blockchain platforms, limiting the opportunities for players to experience
true ownership. Additionally, ensuring asset interoperability between games requires collaboration between developers and the creation of shared standards for asset design and usage. However, the opportunities far outweigh the challenges.

As more game developers recognize the value of empowering their players through blockchain, we will likely see a shift in the industry towards more open, decentralized game economies. This could pave the way for entirely new genres of games where player ownership and control over assets are central to the experience.

The future of player ownership

The introduction of trustless ownership through blockchain technology and smart contracts is a significant step forward for the gaming industry. By giving players true control over their in-game assets, we are moving towards a future where the lines between virtual and real-world economies blur. In this new era, players are not just participants in a game but active owners and traders of valuable digital assets.

This shift has the potential to reshape the gaming industry, making it more player-centric and offering gamers new levels of freedom and security. For game developers, embracing trustless ownership could lead to more vibrant, sustainable in-game economies and stronger player communities. The future of
gaming is one where players are in control, and blockchain is the key to unlocking that future.

A new web3 game report from data analytics company Helika further establishes the recent growth trend seen among games on Telegram and TON.

During Q3 2024, not only did TON see a 320% increase in gaming titles, the number of wallets interacting with NFTs rose from 200,000 to over 1 million. Out of those, around 600,000 were considered consistently active as in either using, trading or engaging with NFTs.

In terms of player behaviour, the average playtime session increased from 2.8 minutes to 6.7 minutes. This could be an indication that Telegram mini-games are advancing beyond simple tapping in terms of game features. 

Another finding pointing towards more diversity in the types of games launching on Telegram is the applications to its Telegram Gaming Accelerator program, which is co-supported by Helika and Notcoin. Notably, the variations in genres among the hundreds of games – including shooters, platformers, and simulation – applying to the program, suggests the ecosystem is moving beyond simple clickers.

As a result of more engagement, player retention has also seen an uptick.

According to the report, the average gamer on Telegram also differs from the traditional crypto gaming audience as it is not based in Southeast Asia or Latin America, but in Europe.

Looking at the factors driving this growth, the obvious one would be accessibility, with Telegram games being directly integrated in the messaging app. 

As for web3 games, the main factor seems to be airdrops. In the case of Catizen, its 150 million token airdrop was the reason behind its rising player activity in September. Similarly, Gamee saw a 300% growth in volume and transactions due to its WAT token airdrop, while X Empire gained 48 million players, of which 18 million connected their web3 wallets in order to mine a share of the 483 billion tokens. Rocky Rabbit, Banana, and Wonton are among other projects hitting well above a million users.

Read the full report here >>