According to the latest count, there are about 3 billion video game players worldwide. With the integration of blockchain technology, online gaming has become much more robust; there’s an entire ecosystem built around it.
An estimated USD$4 billion in revenues and USD$2.5 billion worth of investments were injected into the blockchain gaming industry in the last quarter of 2021, which saw a 2,000% increase during the same period.
But how is cryptocurrency helping the gaming sector? And what important roles does crypto play in the industry? You’ll find the answers in this article after understanding the basics of crypto gaming.
Understanding Cryptocurrency in Gaming
Cryptocurrency, or crypto for short, has disrupted the economic and financial structures since it was launched about two decades ago. Besides bitcoins, non-fungible tokens (NFTs) are widely accepted currencies used for payments, investments, trading, and as assets. As a digital currency, its applications have become versatile, constantly expanding from one industry to the next.
Crypto gaming is the latest sector to have been created following the integration of online gaming and cryptocurrency. This gaming platform runs on blockchain technology, eliminating traditionally centralized gaming mechanisms and enabling users to earn cryptocurrencies.
How Does Crypto Gaming Work?
Many crypto games typically have three primary themes: role-playing, collectable, and open-world games. Regardless of the game type, crypto games let players earn, trade, compete, and sell their digital tokens for profit.
These games typically follow the play-to-earn or P2E model, which rewards players with digital currencies like the REVV token for the game REVV Racing, NFTs, and native tokens for spending time and completing tasks in a certain game.
1. A Gamer Needs Cryptocurrency to Start Playing
As the name implies, cryptocurrency is the only platform recognised by crypto games. A novice crypto gamer must register for a cryptocurrency account or open and maintain a cryptocurrency wallet to initiate any transaction. This digital repository works like a bank account where you can receive and send payments or grow your digital assets.
Opening a cryptocurrency account or wallet entails buying digital tokens using traditional currencies and going through cryptocurrency exchange platforms. Several exchange channels are available to meet your crypto gaming requirements.
2. Crypto Gamers Earn Digital Tokens as a Reward
The play-to-earn modality is a major draw for crypto games, allowing the industry to grow as big as possible. The prospect of earning profit while playing a game is a highly appealing option for people of all ages and genders, whether a gamer or not.
As mentioned, gaming hours are incentivised using digital tokens or NFTs. Certain tasks that could earn you coins include defeating a certain number of enemies and collecting certain items. Even luck and chance-based activities like crypto casino games offer new and existing players rewards.
In addition to earning from playing crypto games, users can collect digital tokens through other means, such as selling their items and other assets or in-app advertising. Answering surveys, watching ads, and referrals likewise let players earn digital tokens.
The good thing about crypto games is that they allow digital tokens to be exchanged for fiat money so that players can use their rewards in the real world.
3. In-Game Purchases aren’t Typically Possible without Cryptocurrency
Online games inherently require gamers to perform in-game transactions to enhance gameplay. Apart from earning rewards, crypto as a primary currency lets players purchase additional lives, upgrade their characters, acquire custom weapons, and gather extra incentives whenever they buy these boosters.
However, some crypto games allow direct purchases using traditional money, so it’s possible to skip these cryptocurrency exchanges and transactions in some instances.
4. Cryptocurrency Facilitates Decentralised Transactions
Traditional gaming mechanisms were centralised. The points and experience you earn as a gamer can’t be used in other games. Blockchain technology, which primarily runs crypto games, crushes this by allowing players to use their rewards and assets across different crypto-based gaming platforms.
Similarly, cryptocurrencies, unlike fiat currencies, aren’t subjected to economic interventions by a specific government. In this sense, players own their in-game items. They can trade or sell them with other players across the globe. More importantly, these transactions don’t go through customary payment processors, so players can skip paying hefty transactional fees or have their assets depreciate due to skewed exchange rates.
5. Cryptocurrency Enhances User Experience
Decentralized transactions and profit opportunities positively impact a user’s gaming experience. By providing gamers with free rein over their digital assets, gamers feel more in control and engaged.
On the other hand, the more players they attract, the more revenue a game developer earns, especially with cryptocurrency instead of traditional payment platforms. This environment enables game designers to become more creative and responsive to their audience, pushing them to develop better products.
While not completely immune from hacking attacks, cryptocurrency platforms are generally private and secure by preventing anomalous digital asset trading and tampering.
Conclusion
Gaming has come a long way within the last few decades. From being viewed as a lazy person’s useless and sometimes costly addiction, online gaming has been recognised as a sport that provides opportunities for earning a substantial amount of money.
However, note that cryptocurrency risks are involved mainly because of the market’s volatility. Knowing how and what makes crypto gaming click is best before engaging in it. More importantly, explore the best online games that offer the most lucrative profit-making opportunities.
