A Matter of Security or Freedom of Expression?

In 2021, the video game distribution platform, Steam, made the decision to prohibit the inclusion of blockchain-based games and NFTs on its platform. Why? What does the platform's publishing policy state? Does this infringe on freedom of expression or is it simply a matter of cybersecurity?

What Happened in 2021 with Steam and Web3 Games

Steam came under fire in October 2021 for this prohibition, which was highlighted by SpacePirate Games, the developer of Age of Rust, who revealed that Valve, the company behind Steam, would not allow the publication of their game due to the real-world value of NFTs. In this article, we will delve into this prohibition in detail and analyze the possible reasons behind Valve's stance.

SpacePirate Games publicly announced on Twitter that Valve would remove all blockchain-based games from the platform. A screenshot of the developer rules and guidelines for Steam attached to the tweet indicated that games "built on blockchain technology that issue or allow the exchange of cryptocurrencies or NFTs" could not be distributed on the storefront.

The developer stated that from Steam's point of view, in-game items hold value, and therefore, they do not allow the inclusion of elements that can have real-world value on their platform.

Possible Reasons Behind Valve's Stance

There are several possible reasons behind Valve's prohibition of blockchain-based games and NFTs on Steam. One of them could be the company's concern regarding gambling laws in its home state, Washington.

In 2018, the Ninth Circuit of the US Court of Appeals ruled that virtual chips in the social casino game Big Fish Casino qualified as "a thing of value" under Washington law, making the game itself an illegal gambling operation. It is possible that Valve, being aware of this legal decision, has taken a more conservative stance to avoid legal issues related to blockchain-based games and NFTs.

Additionally, Valve might be concerned about security and regulatory compliance. Blockchain technology introduces new security risks, such as potential vulnerabilities in smart contracts or scams related to the purchase and sale of digital assets. The platform could be taking measures to protect its users and prevent situations that could compromise their security.

Furthermore, it is important to consider Valve's reputation as a leading distribution platform in the gaming industry. By prohibiting blockchain-based games and NFTs, Valve may be avoiding association with controversies or speculation surrounding this type of game. This could be particularly relevant at a time when blockchain technology and NFTs are still in development and facing regulatory changes and challenges.

The Epic Games Case and Web3 Games

Epic Games, known for its digital distribution platform and game development, the Epic Games Store, has shown support for blockchain technology and NFTs by allowing games that utilize them. In this article, we will explore how Epic Games has implemented blockchain technology and NFTs in its game, Blankos Block Party, and how it has provided players with a new level of control and ownership over their digital assets.

The Use of Blockchain and NFTs in Blankos Block Party: Blankos Block Party utilizes blockchain technology to provide players with proof of verifiable ownership and transaction history. In simple terms, this means that players have greater control over the things they earn and buy in the game. It allows them to manage their inventory and, if they choose to, sell these digital collectibles on the Mythical Marketplace. The funds obtained from these sales can be used to acquire more cosmetics, accessories, limited edition Blankos, or even fiat currency.

It is important to note that the game currently does not integrate cryptocurrencies. However, Epic Games has made it clear that if this changes in the future, an official announcement will be made on Blankos.com.

Security Risks and Regulatory Compliance:

The Decentralized Nature of Web3:

One of the main reasons why Steam may not accept Web3 games, blockchain, or NFTs is the decentralized nature of these technologies. Unlike traditional games on Steam, which run on centralized servers controlled by the platform, Web3 and blockchain-based games operate on decentralized networks and utilize smart contracts to manage assets and transactions. This poses significant technical and security challenges for Steam, which is accustomed to a centralized approach on its platform.

Security and regulatory compliance are fundamental concerns for any online platform, and Steam is no exception. The adoption of blockchain-based games and NFTs introduces new security risks, such as vulnerabilities in smart contracts or the possibility of players falling victim to scams related to the purchase, sale, and trading of digital assets. Additionally, the decentralized and global nature of these technologies presents challenges in terms of regulatory compliance in different jurisdictions, which could expose Steam to legal and regulatory risks.

The Web3, blockchain, and NFTs gaming space has been subject to controversies and debates. The lack of clear regulation, excessive speculation, and instances of fraud have raised concerns and skepticism within the gaming community and the industry as a whole. Steam, as an established and widely-used platform, may be reluctant to associate itself with this type of game to protect its reputation and avoid any potential harm to its user base.

User Experience:

Web3, blockchain, and NFT-based games often require players to have a higher level of understanding and technical experience. This includes creating and managing cryptocurrency wallets, understanding concepts such as smart contracts, and engaging in decentralized markets to buy and sell digital assets. Steam may consider this additional complexity to be a barrier to mass adoption and the overall user experience on its platform.

Although the Web3, blockchain, and NFT gaming space has demonstrated significant growth and captured the attention of many enthusiasts, Steam has chosen not to accept this type of game on its platform. The decentralized nature, security and regulatory challenges, controversies, and technical complexity may have influenced this decision. As the industry evolves and these challenges are addressed, we may see changes in Steam's stance toward Web3, blockchain, and NFT-based games in the future. However, for now, Steam continues to focus on its traditional approach of centralized and enriching games for its user base.