It sounds crazy, right? The year is 2022, and if you’re an astronaut who has been in space before 2009, you would have heard about a new currency that isn’t subject to government or traditional financial institution regulations and is even 100 percent virtual.
Various businesses now accept cryptocurrencies as a legit, legal tender of payment accepted for the goods or services they provide. Whether shopping online, booking a flight, or even carrying person-to-person transactions, you can now transact with cryptocurrencies.
The online gaming business is one market that refuses to be left behind and is jumping on this fast-growing financial revolution. The marriage of online gaming and cryptocurrency is a perfect union because their reputation is on the rise, and some gamesters who patronize online gaming platforms find some of the features of this noble currency quite appealing.
For instance, it is likely that lovers of online blackjack who prefer to remain anonymous while staking and winning money would opt for platforms that have integrated cryptocurrencies into their gaming experiences.
Cryptocurrency in a Nutshell
If you still do not know much about cryptocurrency and struggle to wrap your head around the concept of digital tokens being accepted in real life as payment, you should know that you are not alone. The fact is a lot of people don’t totally understand it yet or maybe don’t even know anything about cryptocurrency.
It might surprise you further that many people who use, own, transact with, or even trade it aren’t exactly cryptocurrency experts. So, here is a quick newbie’s guide to what it is, how it works, and the technology behind it.
When you read about cryptocurrency online, you might find that a lot of the resources and sites you will come across will describe cryptocurrency as a digital token that uses cryptography (a system that utilizes codes to protect data so that only the parties involved can access or process it). This is done via blockchain technology. Are you still a tad confused because of all the tech terms?
Here is a real-life analogy that might simplify things. Imagine if you and a friend came up with a coded language to talk about some issues in public, and only the both of you can understand it or determine how to use it. This example is how cryptocurrency works; only in this situation, it isn’t regulated by financial institutions or government agencies, unlike traditional currencies, and only the entities involved have access to the smart contracts. This is why the term “decentralized” is used when discussing this topic.
Since the first ever eCash Bitcoin became a success as its value shot into the stratosphere, other digital tokens emerged, each with varying values and acceptability. The most popular cryptos include Ethereum (ETH), Tether (USDT), Solana (SOL), and most recently, Dogecoin (DOGE) and a handful of others. When it comes to online gaming, the popular tokens are ApeCoin (APE), Sandbox (SAND), PlayDapp (PLA), Axie Infinity (AXS), Decentraland (MANA), etc.
Why Integrate Cryptocurrency with Online Gaming?
The above question is logical, and the answer is quite simple; as more people embrace cryptocurrency, they will likely prefer to have it included in whatever service they are engaged in.
According to statistics, there are over 81 million blockchain wallets globally. Considering this trend, it is a no-brainer that online gaming firms offer their users a cryptocurrency-friendly gaming experience.
How is Cryptocurrency Integrated into Online Gaming?
First, many gaming developers have found a way of integrating cryptocurrency solutions into their systems. For instance, online casino sites allow users to sync their crypto wallets with their accounts so that they can easily fund them with the cryptocurrency they own, stake, and withdraw in this form back to the wallet when they win.
Another way cryptocurrency finds relevance in gaming is through play-to-earn crypto online games. Play-to-earn, as the name suggests, allows gamers to earn cryptocurrency or virtual or NFTs (Non-fungible tokens) while they play and win against other gamers online. Some gaming developers take this further by rewarding the player’s devotion to playing as they complete tasks with NFTs or crypto.
Play-to-earn and other blockchain games are catching on despite the earlier hesitance by gamers, and according to a stat found online, they accounted for up to half of the total blockchain dealings in 2021. Similarly, using cryptocurrencies, players can pay for certain perks or assets in-game, like power-ups, coins, extra lives, and more, just like they could do with traditional currencies.
Beyond this, some game developers attract players to their products by offering them the opportunity to earn rewards when they engage with in-app ads. Players can sometimes answer surveys or watch ads and then get crypto rewards. This strategy could assist developers in attracting brands to advertise with them.
These are just a few ways online game brands can forage into the crypto world and appeal to crypto enthusiasts.
What Can Online Gaming Platforms Gain from Adopting Cryptocurrency?
Some benefits that are both beneficial to gamers and developer includes:
1. Security
There is some distrust between online gaming platforms and players, especially regarding transactions between both parties. The positive here is that one of the biggest appeals of cryptocurrency is that it utilizes blockchain technology which has been proven secure.
The modern gamer has more confidence performing transactions while playing online games, allowing them to do so with cryptocurrencies.
2. Efficiency of Transaction
Part of the selling point of the whole cryptocurrency idea is that it doesn’t require any middleman for the transaction to take place, so players can play their favorite games and perform in-game purchases/transactions in record time.
3. Anonymity
Whether it is online gaming or just visiting a seemingly harmless website, internet users are always concerned about the safety of their data, what is done with it, and who could find their identity.
When it comes to certain online games, players would not only like for their data to be safe, but also they would like to be anonymous. By playing online games that offer cryptocurrency features, you can choose whether or not to share your personal information.
The Bottom Line
There are some potential drawbacks to online crypto games, like the still unproven stability of the value of gaming tokens or virtual gaming assets, which rise or drop based on the game’s popularity, and also the likelihood (though slim) of gamers falling prey to criminals.
In the not-so-distant past, hackers have been able to steal millions of dollars worth of cryptocurrencies from players of a particular crypto game. Despite this, if game developers can find a solution to this problem and further explore the potential of crypto games, the possibilities are pretty exciting.
