PROBLEMS

In 2021, the GameFi market saw significant growth and brought new streams of money and value to the industry. Games like Axies Infinity, The Sandbox, and Decentraland have been major players in this revolution for the blockchain gaming industry. However, there are some limitations that hinder the potential growth of the market. Some of these limitations include:

1. Scalability: this is a major limitation for current blockchain technology when it comes to handling large numbers of players and transactions. This is because the capacity of the underlying blockchain network is limited by the number of transactions that can be processed per second. Even with the development of fast and scalable layer 2 solutions such as IMX, Ronin, and Optimism, the technology is still not capable of handling the large numbers of players and transactions required for games with a large player base. This limitation affects the potential player base for blockchain games and can make it difficult for developers to attract and retain a large number of players. Additionally, high costs and complexity of the technology can also act as barriers for mainstream adoption.

2. High entry costs: Playing Axies Infinity at its peak can be costly for players. According to some reports, players may need to spend a minimum of $300-$500 to build a below average Axies team that can compete within the game and earn SLP/income. However, it is important to note that the cost of building a team can vary depending on a number of factors, such as the current market conditions, the rarity of the Axies being purchased, and the specific goals of the player. Additionally, it's important to note that the cost of building a team may change over time as the game develops, and new features and updates are added. The price of axies and the cost of playing the game can also vary based on the player's strategy and how much time and resources they are willing to invest in the game. It's also important to mention that spending a large amount of money on the game is not a guarantee of success, as other variables such as player skill, luck, and the overall state of the game and its economy, can greatly influence the outcome.

3. Not “Fully On-chain”: Many blockchain games currently in the market do not fully utilize the benefits of blockchain technology. Instead, they only store metadata on-chain while the actual gameplay is still handled by centralized servers. This is a drawback as it goes against one of the core benefits of using blockchain technology, which is decentralization. By using centralized servers for gameplay, blockchain games are still vulnerable to traditional issues such as server downtime, censorship, and lack of transparency. This undermines the trustless, transparent and decentralized nature of the blockchain.