In recent years, cryptocurrency has become a global phenomenon. The convenience of crypto benefits various sectors, including online gaming. Cryptocurrencies enable participants to accumulate and trade virtual assets that can be exchanged and traded anywhere in the world. And you can make money from this.
But, if you’re new to this world and don’t know what we’re talking about, let us explain. A cryptocurrency is a digital asset that is protected by encryption. Blockchain technology is used to ensure decentralization, transparency, and immutability. This can have many benefits in gaming, which we will explain in our next section.
Benefits of crypto gaming
Cryptocurrencies give gamers various perks compared with traditional gaming. Here are a handful of those advantages.
Convenience – If you’re a game producer, you can enable players to make in-game payments and acquire cryptocurrency assets. Players will no longer have to wait for third-party payment providers to execute their fiat currency transactions; instead, they can purchase game collectibles instantly. You are also enabling players to save money on payment provider fees.
More secure – Because blockchain adds an extra degree of security by utilizing encryption methods such as Secure Messaging and Two-Factor Authentication, sensitive data such as player information, game data, and user transactions are protected from being tampered with or hacked.
Make money – You get to play your favorite games while earning money – who could argue with that? It’s an honest approach to generating passive income with cryptocurrency. See our play-to-earn section below for more information on this.
Anonymity – The internet is a place that’s full of individuals from many different walks of life. Many people wish to remain anonymous in such circumstances. You can disguise your identity with crypto gaming since cryptocurrency transactions never reveal personal information unless you disclose it voluntarily, and all transactions occur between encrypted and encoded wallets that show nothing about you. The anonymous crypto address generated for user purchases also changes with every transaction.
Play to earn
Earning money in games has primarily been a one-way street thus far. However, game psychology has evolved. Players desire to take on more responsibilities in the games they play. They want to be compensated for the time they spend online. Enter GameFi, a combination of gaming and finance has become one of the most talked-about areas in Web3. The term ‘GameFi’ alludes to the financialization of video games. It’s distinguished by its ‘play-to-earn’ (P2E) business model. It mainly refers to blockchain games that provide tokenized incentives to players while enabling frameworks for player-as-owner rather than player-as-consumer.
The idea behind play-to-earn games is straightforward: players gather cryptocurrencies or NFTs generated by the blockchain-based game. Following that, players earn money by selling in-game NFTs or earning cryptocurrency prizes, both of which can be swapped for fiat currency. Another element of play-to-earn games is the premise that the more users engage, the more opportunities they have to earn assets and improve the value of their assets. The game’s worth grows for the community and developers as more players join and create the in-game marketplace. Earning tokens and producing revenue requires both skill and planning. More talented users will obtain more assets than less gifted individuals.
Gaming and blockchain appear to be made for each other. Gamers have long been prepared to invest significant time and money in a well-crafted virtual environment. Blockchain technology, with its capacity to enable the strong, worldwide trade of digital currency and items, provides the ideal road for growth. Cryptocurrency games are bringing these two worlds together, and while it’s early days, the indicators are good. Many games based on cryptocurrencies and blockchain technology, such as CryptoKitties, Etherbots, and Etheremon, are currently available in the games market.
As these games gain popularity, we can expect to see more projects of this type, and additional capabilities incorporated into these games, such as AR or VR, to offer an even more immersive experience. The future of cryptocurrency gaming is unknown, but it looks set to be an essential element of the gaming industry’s future.
The introduction of cryptocurrency and blockchain technology has transformed several worldwide businesses, probably none more so than gaming. The technology’s unique benefits, such as faster bandwidth, increased security, and digital ownership possibilities, have ushered in a new era for online gaming, and the promise of even more exciting things to come.