In every aspect, change with time is important, it is true. The same goes for the games. This industry has been witnessing rapid changes in the past few years: technologies and new trends like Augmented reality (AR), Virtual Reality (VR), and more are becoming the cornerstone in the competitive world of gaming space.
But what about traditional games? Does the decentralized game take over the traditional games or do traditional online games still hold the edge? Don’t worry, if you are still struggling to figure out this situation, then this blog may help you well. Here you will find everything about traditional and decentralized games, for instance, their features, advantages, disadvantages, limitations, and more. So let’s delve into this blog to know more.
Table of Contents
Unleashing Traditional Online Games
As the name says, traditional games are simple and authentic games that are played by almost every age of people. It is one of the favorite pastimes for every age of person. Games like Ludo, Snake and Ladder, Carrom, Chess, and Poker come under traditional games.
Control and Ownership
These games work on centralized servers and are owned by the owners and publishers as they have full control over the game updates, content, assets, and more. Here players do not have control over their game items, if the server shuts down, all progress and purchases are lost. It includes different in-game purchases, for instance, skins, weapons, and characters. Monthly or yearly subscription fees for access, and advertisements to generate revenue from free-to-play models.
Limitations for Traditional Games
Whether it’s traditional or decentralized games, each one of them comes with some limitations. They can be security risks such as hacking and server breaches, which are some of the common concerns. There are more limitations to pay attention to, like asset restrictions, where players are not given the authority to sell in-game assets outside the game.
Server dependency is one of the main concerns to pay attention to, here, if the game company shuts down a game, all progress is lost. Another reason that is responsible for the lower user retention is the lack of player authority, where developers can alter or remove content at any time without player consent, which might have a negative impact on the player’s mind.
What are Decentralized Games
This is a modern version of the game, or in other words, we can say decentralized games are the improvised version of traditional games. Below, let’s know some of its aspects like which technology it uses, monetization models, and more.
Blockchain and Smart Contracts
Decentralized games use blockchain technology, which allows for transparent and secure payments to the players. Every in-game asset and transaction is recorded on a public ledger, providing that all players have visibility into game mechanics and economy. The smart contracts automate the game rules, implementing conditions without human intervention, eliminating the need for centralized authority, and increasing fairness.
Play-to-Earn (P2E) Model & NFT Ownership
Unlike traditional games, decentralized games allow players to earn real-world value through NFTs (non-fungible tokens) and cryptocurrency rewards. Players can earn, trade, and even sell their digital assets outside the game environment, making their time and effort in the game more valuable. Games like Axie Infinity and The Sandbox showcase this model, where players own and trade assets freely, enabling an ecosystem where in-game progress can translate into financial gain.
Transparency & Security Benefits
Blockchain confirms if the game data is immutable once data is recorded, it cannot be altered or deleted. This reduces cheating, hacking, and fraud, as game mechanics and player transactions remain verifiable and tamper-proof. Additionally, decentralized games do not rely on a single point of failure, making them more resilient to server crashes and cyber-attacks.
DAO-Based Community Governance
Many decentralized games use Decentralized Autonomous organizations (DAOs), allowing players to participate in decision-making, and influencing game development and policies. DAOs operate through smart contracts, which execute community votes and governance mechanics fairly. This allows a more democratic approach when players can vote on updates, game rules, and even revenue distribution. Instead of game developers unilaterally deciding the direction of the game, DAOs ensure that key stakeholders, players, have a say in its evolution, fostering a stronger, more engaged community.
Key Difference Between Decentralized and Traditional Online Gaming
Although both of these games have their significance, there are still some specific differences one should know about. Here’s the table describing all the key points of how these two games are different from each other.
Feature
Traditional Games
Decentralized Games
Ownership & Control
Developers own and control all in-game assets
Players have true ownership of assets via NFTs and tokens
Monetization
Pay-to-play, microtransactions, or subscriptions
Play-to-Earn (P2E) model with real-world value rewards
Security
Prone to hacking, cheating, and central server breaches
Blockchain ensures transparency, immutability, and security
Interoperability
Assets locked within individual games, not transferable
Assets can be transferred, traded, or used across multiple games and platforms
Community Involvement
Developer-driven decisions and content updates
DAO-based governance with player voting and influence
Asset Liquidity
In-game items cannot be sold for real money outside the game
NFT and cryptocurrency-based assets can be bought, sold, and traded freely
Server Dependency
If servers shut down, players lose progress and assets
Decentralized storage prevents total data loss; games continue through blockchain nodes
Regulatory Control
Game publishers control game economies, rules, and transactions
Decentralized nature makes enforcement of traditional regulations more complex
Game Updates & Changes
Developers make all changes without player input
Community-driven development where players have a say in updates and game policies
Transparency
Game mechanics and algorithms are closed-source
Open-source and transparent mechanics via blockchain
Earnings & Economy
Players spend money without financial returns
Players can earn money through trading, staking, and playing
Market Insights and Growth of Decentralized Gaming
With time, the growth in decentralized gaming can be seen rapidly. Let’s understand this more in detail.
Rise of Web3 Gaming and Investment Trends
Web3 gaming is gaining popularity, with major investments being made by venture capital firms and gaming giants. The integration of blockchain in gaming is expected to revolutionize the industry. Leading investors and companies are supporting decentralized gaming projects, recognizing the potential for a player-driven economy. As blockchain technology matures, the adoption of Web3 gaming is likely to accelerate, with companies investing in infrastructure, security, and scalability improvements.
Case Studies of Successful Decentralized Games
Axie Infinity is a renowned play-to-earn game where players breed, trade, and battle NFT-based creatures called Axies. Players can earn smooth love potion (SLP) tokens, which have real-world value, creating an ecosystem where gaming can be a full-time professional for some.
Sandbox is a virtual metaverse game that allows players to create, own, and monetize experiences using NFTs. The game features a decentralized marketplace where users buy and sell virtual land, assets, and experience, driving a player-owned economy.
Key Challenges to Mass Adoption
Scalability: Blockchain networks should handle transaction volume carefully. Some of the networks face congestion, leading to high gas fees and slow transaction speeds. Layer-2 scaling solutions and new blockchain architecture aim to address these issues.
Regulations: Many countries are unaware of the emerging legal frameworks regarding blockchain gaming, NFTs, and cryptocurrency transactions. Governments are still debating how to classify digital assets, creating uncertainty for game developers and players.
Accessibility: Understanding the blockchain system is not a piece of cake for many players, it gets difficult for the players to onboard, set up wallets, manage private keys, and understand decentralized finance (DeFi) mechanics, which can be barriers for new players. Developers are working on user-friendly solutions to simplify the process.
BR Softech’s Expertise in Traditional & Decentralized Gaming
With a team of experienced developers and game designers, BR Softech has been in this game development market for 12+ years. They offer blockchain integration, smart contracts, and Play-to-Earn models alongside traditional gaming solutions using Unity, Unreal Engine, and HTML5. BR Softech is proficient in creating customizable games for their clients at affordable prices. If you wish to choose this game development company, you can get perks like:
On-time project delivery
Customized games
Integration of Latest Features
24*7 Chat support
Future of Gaming: Is Decentralization the Next Big Shift?
The future of decentralized gaming is growing with the integration of the latest technologies like blockchain, and smart contracts, which leads to easy and safe transactions for the players in the game. As decentralized infrastructure improves, major gaming studios may adopt blockchain features, creating hybrid models that provide the best of both worlds. Businesses should embrace this evolution to stay competitive, exploring how blockchain can enhance engagement, retention, and revenue opportunities.
Conclusion
Decentralized gaming presents exciting opportunities by offering greater ownership, security, and earning potential for players. However, traditional online games still dominate due to their established ecosystem, vast player base, and polished gaming experience. As the technology evolves, we may see a gradual shift toward decentralized, but mainstream adoption will depend on scalability, regulations, and user-friendly innovations.
Frequently Asked Questions (FAQs)
How does blockchain technology improve transparency and security in gaming?
Blockchain records all transactions on a public ledger, ensuring transparency. Smart contracts automate in-game processes, reducing fraud and hacking risks.
What do you think about Play-to-Earn (P2E) models? Are they sustainable?
P2E models allow players to earn real-world value, but sustainability depends on a balanced economy. Games must prevent inflation and create long-term value to remain viable.
Do you believe DAO-based governance can improve game development?
Yes, DAOs give players a say in-game updates and policies, leading to a more engaged community. However, balancing player and developer interests can be complex.
What are the biggest drawbacks of traditional online games?
Traditional games have centralized control, meaning developers own all assets. Players can’t sell or transfer in-game purchases, and if a game shuts down, all progress is lost.
I am Nitin Garg, founder of BR Softech PVT LTD - an award-winning mobile game development company known for its excellence in the gaming domain. We have a team of 180+ exceptional professionals & we have a satisfied clientele of 2.7k+ globally. Driven by an entrepreneurial spirit, I aim to elevate BR Softech to a billion-dollar company.