By Nathan Ferguson
Over the last decade, the world has seen an immense rise in the values of cryptocurrencies, and now, they are all around us. Casinos, trading centres, and games are all under the influence of cryptocurrency. Introduced in 2008 as a digital currency, few people invested in it, but in today’s world, millions of people take an interest in it. People look forward to becoming investors in the world’s fastest and most advanced financial market, and for this, besides investing through fiat currencies, they also look for alternatives that can help them win some cryptocurrency bucks.
Gaming is a vast industry. People from every sphere of life, be it traders, accountants, doctors, engineers, drivers, enlist as many as on your mind, are fond of playing games. People play games on their PCs, laptop, mobiles, XBOX, play stations, gaming zones, or anywhere any way they want to play. There are many passionate gamers, or you can say professional gamers, who make money by playing games. Youth follows gamers who are earning income by playing their favourite games.
Making assets while playing a game sounds too good to be accurate, but the fact is it is true. Cryptocurrency has grown its roots into multiple industries, and gaming is one of them. With around 5.4 billion crypto traders around the world, the entry of cryptocurrency in the gaming world will significantly increase the number of traders and games, and both industries will benefit from it.
Suppose you are a gamer with little knowledge of cryptocurrency but willing to make some digital assets or a want-to-be crypto trader with no investment. In that case, this amalgam of gaming and cryptocurrency is favourable for you.
This guide article will discuss many beneficial aspects involving cryptocurrency and its working, gaming, how cryptocurrency works with gaming, and the benefits of cryptocurrency in gaming.
What Is Cryptocurrency and How Does It Work?
Cryptocurrency, usually named “crypto”, is a digital currency. It is a collection of binary data framed and widely used as a medium of exchange. It is a digital currency because they do not have a physical existence. Secondly, they are not backed by a commodity and can not even convert into one, as it is for fiat currencies. Cryptos are based on blockchain technology and secured using cryptography.
Blockchain technology is a decentralized technology. They work through a distributed ledger technology that forms this public financial transaction database. It is a public database, hence not under any government authority or Central Bank Digital Currency control. No authorities can access to owners of cryptocurrency or apply their regulations on ownership or transaction of cryptocurrencies. There is no requirement for a third party as cryptocurrency is transferred through peer-peer transactions. There are no transfer or exchange fees until the platform you are using for exchange charges their mission.
Each transaction in blockchain undergoes a series of steps where ‘blocks’ are added to the growing chain- the list of records. Each block is linked and encoded and has information in hash and validated by time stamping. This time-stamping eliminates the role of third-party validation of blockchain transactions while making blockchain technology a validated process for the transaction. Blockchain technology offers many benefits such as security and privacy, visibility, speed, individual control of data, and many more.
When the essential steps are completed, the process performers have rewarded a cryptocurrency in the process called mining. Anyone who owns cryptocurrency needs a digital wallet to store this digital currency. People invest in fiat currency to build their digital assets due to their high value. As per the data issued on January 20, 2021, CoinMarketCap, there are 7812 cryptocurrencies that hold a value of $324.716 billion. Some other resources state that currently there exist more than 13,506. So, people get a number of options to choose from, the ones they like.
The first-ever cryptocurrency in the market was introduced in the year 2009. It was the first one to hit the market and open to investment for everyone around the globe. This cryptocurrency is still the most valuable digital asset, named Bitcoin and a coin of this cryptocurrency is $ 49507.70. The other leading cryptocurrencies include Ethereum, Litecoin, Namecoin, Dogecoin, Cardano, Shiba Inu, Peercoin, and many more. As the trend of investment in cryptocurrencies is at its peak, investors invest more into cryptocurrency.
For this, they have to connect with trading platforms or online exchanges from where they keep connected to the trading world and make profits by purchasing, selling, or exchanging their digital assets. Now, moving forward, Mastercard, a financial service company, offers cards that people can use at banks or merchants and avail cryptocurrency services.
What Is Gaming?
Gaming is an act of playing games. In this modern world, ‘gaming’ is more closely linked to playing games on special applications- electronic games on multiple devices. These applications provide an interface with appealing graphics and a story in which gamers become a part. Each games’ story has a plot, offers missions, and gamers have to take action to accomplish those missions—some games, like racing games, where gamers compete to attain positions in the race.
For some people, gaming is a time-killing activity. For others, it is a passion and profession. Some people use gaming to strengthen their learning and social skills. Gaming also improves cognitive skills. It polishes perception, memory, spatial navigation, and reasonings, but on the other hand, an overdose of gaming is also unfavourable for humans, especially children.
There are multiple types of gaming apps, 2-D games, 3-D games, virtual reality devices, and now many blockchain technology-based apps run games. There are a wide variety of games with excellent interfaces. There are modern devices like Xbox and PlayStation with gaming consoles. There are online games where virtual teams play against other teams within a gaming frame. These games provide the chance of earning points/ coins/ bonuses that players use to upgrade their tools and play games proficiently, and this is the point where cryptocurrency steps in the gaming world by giving rise to a new GameFi industry.
How Does Cryptocurrency Work With The Gaming Industry?
Let us start with a general thing here. Kids or any one of us is attracted to gaming as it gives us bonuses, prizes, and a winning prize. Interesting right?
In some games, a new level unlocks at certain points, or gamers have to deposit their earned rewards to unlock a weapon or a level. This was the old “sweet” concept of in-app purchases. There are different monetization tactics or strategies incorporated within the gaming apps with the technical advancement. It includes in-app advertising, in-app purchases, referral, or affiliate marketing.
In-app purchases are almost there in most of the games. Here gamers can purchase extra lives, coins, their favourite characters or their outfits, different boosters, weapons, tools, vehicles, and more.
In some apps, app advertising is smartly placed. Gamers watch an ad (or complete any task), and as an incentive, they get an extra life or a tool that will assist them to boost their game. Sometimes, gamers are also required to fill survey forms.
Although new, affiliate marketing has also entered into gaming apps. Players in the games get an affiliate link or a banner that they can share via WhatsApp or social media with their friends and earn rewards as their friends join the fun.
Some games build on the play-to-earn model, where players can earn cryptocurrency-based tokens and gaming coins.
Now, let us take it to a whole new level.
Cryptocurrency in the gaming industry is one of the immense opportunities for cryptocurrency enthusiasts and online gaming players. Instead of giving bonuses and prizes to players, gaming apps reward cryptocurrencies or adopt cryptocurrencies as a payment mode to make in-app purchases. Other than earning in-game cryptocurrencies, there is also an option of trading in-game NFTs. Locking up cryptocurrencies or NFTs in smart contracts is also an option.
Here comes a question in mind: why would gamers invest in purchasing a character or weapon for an ‘A’ game using something as valuable as crypto? The game developers have already framed the ultimate solution.
Game developers build games using similar technology, and if not, they at least make its platform compatible with things gamers purchase within the game. This phenomenon is called cross-game item compatibility, and it is an excellent pitch for attracting more gamers to make in-app purchases using cryptocurrency. Gamers can use their purchased character or weapon in multiple games creating new vibes within the game they are playing.
There are many games in the market that allow gamers to earn crypto. The list includes idle Cyber, Axie Infinity, Battle of Guardians, MetaWars, Town Star, Sandbox 3D, Splinterlands, Gods Unchained, Star Atlas, Lightnite, Sorare and many others.
Crypto games are real. Many people are making handsome earnings by playing these monetizing games. These games usually offer NFTs that players can sell in secondary markets, farming and stacking.
What Are Gaming Coins?
Gaming coins are cryptographic coins that involve money and are used in games to make purchases and earn. Most of the gaming coins are tokens based on established blockchains. For example, Axie Infinity is based on Ethereum Blockchain.
The gaming coins are cryptos existing within the games. To take out these tokens from play-to-earn games, you need to connect to an exchange that offers you a reasonable price for your game-based digital asset. This exchange can be in fiat currency in your bank account. There is also an option to use a Visa Card for a specific stable cryptocurrency.
The GameFoi industry is in its initial years, but the blockchain gaming companies still managed to raise more than $455 million within the initial six months of 2021. This massive sum of money and severe growth potential has attracted more people to join the bandwagon and invest in play-to-earn models and gaming coins.
Besides these gaming coins, gaming NFTs are also of considerable importance. Many games prefer giving out an NFT instead of creating a gaming coin de novo. Creating a de novo gaming coin has its technical requirements and complexities easily eliminated with NFTs. NFTs are non-fungible tokens. They are a set of data placed on a digital ledger and mostly a piece of visual art that is sold and purchased against cryptocurrency or fiat currency. The gaming apps issue NFT, which gamers take to the secondary market and sell to make some dollars.
What Are The Benefits Of Cryptocurrency In Online Gaming?
Anything brought into the market has benefits for users, and these benefits become a core reason to purchase that thing. There is huge demand and interest in online gaming as well as for cryptocurrencies, and this amalgam has compacted both under one roof. It is a cutting-edge collaboration that has revolutionized their lives for good for many people.
- Cross-game compatibility
It is great news for gamers that they can invest in their favourite weapon or gaming character and then use it across multiple games. Gamers can enjoy their character in different games, giving a new vibe to each game. Later, they can sell their character or weapon to anyone around the world in their favourite gaming coin or cryptocurrency as per their likeness.
- Streamlined Payments
When people have to share their amounts from one country to another, it involves a number of banks, transaction fees, deduction and time to receive at the other end. Cryptocurrency eliminates this hurdle. There are no withholds, no proof of income is needed, and no fees are charged for making these payments.
- Safe and Secure
Purchasing and selling cryptos requires information, banking and wallet address, so the source must be trusted. Many people stay out of making in-app purchases because they doubt the credibility of gaming apps and websites.
Once you have got your trusted app, players get all the benefits offered by blockchain technology. This integration prevents the illegal transfer of digital assets. The apps built using blockchain technology are also secured from other fraudulent activities.
- Ability To Play Anywhere
Cryptocurrency holds the same value for everyone around the world. A bitcoin in America has the same value in Asia or Africa. Gamers around the world can download and play play-to-earn games from anywhere in the world and draw their amounts from gaming apps whenever they want. These gaming softwares do not demand any proof of identity or email address to earn or share their crypto coins.
- Anonymity
Gaming apps protect the digital currency in your app, but there may be a risk of losing your personal information. These apps never inquire about the number of transactions you make or your banking details until the information is passed voluntarily. It is advisable not to share any information and stay safe. For all the transactions using these apps, a new wallet address is created each time. This ensures that their buyer and seller remain hidden all the time.
- Adds Value To Your Money
Integrating cryptocurrency in a gaming app is profitable for developers and gamers. Gamers can make peer to peer transactions without involving any exchange, and there are no additional transaction fees involved as it is with most of the exchanges. It saves them some of their valuable digital assets. Gamers receive and send full amounts into each other’s wallets or gaming apps without paying any platform for completing their transaction.
- Instant Transaction
Sharing cryptocurrencies is really easy. As cryptocurrency is based on a decentralised network, there is no need of involving any bank or centralised authority for transactions. You can share your cryptos instantly and efficiently. The only problem gamers face sending and receiving cryptocurrency outside the application. To transmit or receive your cryptocurrency, the sender enters the sender’s wallet address and presses the send button to share their cryptocurrencies.
What Does Future Hold For Cryptocurrency In Gaming?
Investment in any asset involves risk. People also consider cryptocurrencies as risky, and there are times when the value fluctuates. If you are looking forward to becoming a part of games that offer cryptocurrency as a reward or involvement, it is a must to research it. There are a number of games introduced to markets for attracting players by providing valuable digital assets, but sometimes, the case is different. It is wise to dig out the authenticity and credibility of games before investing your time and money with them.
Final Verdict
In this era, almost everyone knows what cryptocurrency is. After the enormous financial fall due to the Covid-19 pandemic, more people have started interested in cryptocurrencies. The direct sale and purchase of cryptocurrencies are equally beneficial, but they require a significant investment. To overcome this barrier and provide a cutting edge for online gaming enthusiasts, the financial and gaming industry have joined to present cryptocurrency in gaming. This new industry has a huge potential for earning profits while enjoying gaming. There are various ways in which players can make cryptocurrencies, including gaming coins, NFTs and stacking as the most commonly used.
The cryptocurrency in gaming brings many benefits for players. Conclusively this field offers excellent value for money, security, feasibility and empowerment for gamers interested in cryptocurrency.