By mid-2023, financial and economic localized turmoil has led to an economic downturn at the global level. However, blockchain gaming continues to ignore this gloomy forecast, showing burgeoning activity.

Games have always remained out of the turmoil area, continuing to stay on the upswing in their capabilities. They have always adapted to new trends the fastest. Cryptocurrency is not just used as a means of secure transactions, it has opened the door for creators and users to a more immersive gaming experience. At the same time, the addition of cryptocurrency wallets to this booming industry has made the player experience even more profitable.

In all this gaming-financial story, cryptocurrency wallets play their own special role. For some, this integration makes it easier to manage crypto assets in the game world; for others, it is an unwanted add-on that prevents players from getting the most out of the in-game experience. Where is the truth?

Blockchain games today: stability amid global economic instability

Online gaming, including gambling, has been booming over the past few years, with the market expected to reach a value of $340 billion by 2027.

At the same time, blockchain gaming has always been an important sector in the crypto industry, even though there was a drop in dominance this May, when gaming had a 36% market share, according to DappRadar. However, as per the same source, the steady growth of the industry looks intriguing, with the number of gaming wallets increasing by 6% each month, highlighting the sector's dynamism.

In addition, the game market is growing due to the following factors:

• Crypto enthusiasts continue to make in-game purchases

Nearly a quarter of crypto users leverage cryptocurrency to buy food and retail goods, as well as to make purchases related to online gaming or financial service access. For example, consumers spent $67.9 billion on digital in-game purchases last year. At the same time, Web3 games generate 23x more on-chain transactions than DeFi.

• Focus on Web3 games for iOS

iOS games account for 58 % of the entertainment market, generating a combined $52.3 billion in revenue. So, taking advantage of a new opportunity, Axie Infinity, one of the most popular blockchain games with the "play-to-earn" concept, launched its mobile version on the App Store in Latin America and Asia. Despite a ban on NFT in-app purchases, the game has amassed at least 1.5 million installs.

• Investors continue to "fuel" the industry

The February 2023 investment rounds raised a total of $148 million, 65.2% of which were directed to Games/Metaverse.

In May, $476 million was raised, bringing the total amount raised to $1.6 billion by the second half of this year, almost half of which were directed to the Games/Metaverse.

The aforementioned figures indicate that interest in blockchain gaming continues to grow against a backdrop of general economic instability. Players are increasingly interested in new features within their gaming experience. Wallets can be part of a convenient and unforgettable experience, allowing players to simply manage their in-game assets.

GameFi and crypto wallets: teaming up for new opportunities or killing the pleasure?

Well, what is GameFi?

GameFi (gaming + decentralized finance or DeFi) is a sector of the crypto industry that provides access to blockchain-based play-to-earn games. The first such games were launched in 2017 and then gradually gained popularity among players. Essentially, these are the same regular games, but with the possibility to monetize in-game objects. That is, if you used to play for fun, now even to make money. How?

In blockchain games, players can create their unique characters, upgrade them, sell to other players, or buy them. Buying can be done on in-game marketplaces, and payment is made in cryptocurrency. There are also internal tokens of popular games, which are already traded not only on in-game platforms but also on crypto exchanges.

Okay, what does a wallet have to do with it?

Where there is DeFi and transactions (buying/selling in-game assets with crypto), there is a wallet.

The essence of DeFi is to exclude third parties, such as banks and other institutions, from in-game financial transactions. I.e. a player can directly sell and buy an in-game item or “skins” (weapons, costumes, avatars, virtual lands, etc.) from another player without needing to involve a third party to complete the transaction. The blockchain, or in more detail, the smart contract, handles all the processing.

A crypto wallet in this case is designed to store crypto assets and NFTs acquired during the gaming process. A digital crypto wallet can be accessed at any time as long as it has an Internet connection.

Often, such crypto wallets can be “local”, for example, gaming wallets. They are specifically designed for the needs of gamers. Their main function is to provide a safe place to store and manage the player's digital assets (in-game items, cryptocurrency, NFTs). For example, they can be provided directly by the blockchain game supplier as an additional feature.

Or it can be common crypto wallets widely known today (e.g., Metamask, Binanse wallet, etc.), which allow the withdrawal or deposit of funds from/to an in-game account/crypto profile.

What do wallets allow you to do within blockchain games?

The feature set varies from wallet to wallet. Somewhere it can be a tool for storage only, and somewhere it can be a tool with wider possibilities. Here it rather depends on the game, its scale, and its popularity. However, there are several "default" crypto wallet features that simplify the gaming experience:

1. Fast transactions and convenient asset storage

The integration of a crypto wallet into the game space allows players to make transactions without the involvement of a third party. This, in turn, enables them to make quick transactions and effectively manage a crypto & NFT portfolio without leaving the game space.

Need to buy an in-game character costume? Then, go to the in-game marketplace, choose, and pay. The transaction is done instantly, while the desired item is in your hands and you can continue the game experience.

2. Increased safety

Transaction security is a rather intricate issue when it comes to buying game items using your crypto.

GameFi projects are backed technically by a blockchain and a smart contract. On the one hand, a decentralized approach helps prevent illegal asset trading. However, blockchain and crypto, among others, are still in their infancy. This is the Achilles' heel that hackers take advantage of. They can exploit the vulnerabilities of the technology at the expense of its "non-ideality," as well as take into account the ignorance of players regarding crypto transactions and crypto wallets. Therefore, it's worth choosing a wallet carefully to keep your assets safe.

Important: It is crucial to choose a crypto wallet with as many security measures as possible. For example, a non-custodial crypto wallet allows only you and no one else to access your keys and, therefore, your assets. This negates the risk of an outsider gaining access to your assets stored on the blockchain. However, you should keep in mind that if you lose your keys, there is no way to regain access to them. That's why it's recommended that you write down your keys on paper and keep them in a safe for greater protection of your assets.

3. Players profile compatibility

A wallet can simplify the crypto enthusiast's navigation within the Web3 gaming space. For example, a wallet can become a single crypto profile for both SocialFi platforms and blockchain games.

So, the address you get when you create a crypto wallet essentially represents your nickname within the Web3 space. It serves 1)to receive crypto, i.e. you can share it with another person to fund your crypto wallet and 2)to identify your profile on the blockchain. In other words, players can transfer their unique public addresses from one game to another, as well as use this single address for various decentralized social platforms. It turns out that your transaction data, NFTs, and others are not disparate, but "collected" in a single wallet=crypto profile. This makes it easier to manage your crypto profile, identify your profile among the GameFi community, and build the reputation within the crypto space.

GameFi and crypto wallets: common pitfalls

1. It's no fun anymore

Traditionally, games were only for entertainment. But the concept of play-to-earn, born just as blockchain was penetrating the technological landscape, shattered the paramount importance of games.

As a result, the gaming industry today is has a division into:

• Those who don't mind the infiltration of crypto and wallets into the playing field, seeing in it the potential income
• Those who see the concept of play-to-earn as a barrier to immerse into the original effect of gaming - entertainment.

For example, developers can make it harder to level up or unlock items in the game. If you want to keep going, you have to pay. Of course, many people may find such games less appealing. They are more likely to find games practical, but not for fun.

2. The complexity of UX

The first crypto wallets were more "from developers for developers". Software engineers still face several challenges when it comes to GameFi development and especially when designing a crypto wallet, here are some of them:

• Novelty and lack of knowledge of blockchain technology
• The unresolved issue of crypto regulation at the international level
• Security problems that need to be solved first, etc.

Faced with the aforementioned challenges and trying to solve them all in one go, developers end up rolling out a solution that is difficult to use for the average! user. Novice players are more likely to use solutions that are easy to use. One that will not distract them from the gameplay and that will not require hours of "fiddling" around to make sure their assets are safe and secure.

This problem flows closely into the next one👇

3. Difficulty of entry for beginners

The intricate interface and cumbersome design are more likely to hinder the average user from learning the product. Moreover, constant news about wallet hacks and the instability of the crypto market only prevents both average users and experienced gamers from starting to use crypto wallets to meet their needs.

The balance is somewhere in the middle. It is important to release a concise, minimalized solution with numerous prompts and a simple set of features. Then, the average user, who may be an avid gamer among others, is more likely to have a simple onboarding → pleasant learning of a new tool → painless gaming experience → easy adoption to the crypto space and its products.

OneArt Wallet can be your one-stop solution for adapting within the Web3 space. First, we've made a simple functionality and spiced it up with a simple design and clear interfaces. Ahead, we're improving the wallet and equipping it with social features (would-be!) to get closer to the ultimate in perfection.

Follow official OneArt channels to find the latest info and updates:

• Twitter
• Telegram Group
• Telegram Announcements
• CoinMarketCap Community
• LinkedIn
• YouTube