When cryptocurrency began to be used as one of the payment options in gaming, a lot of things changed including how financial transactions were handled and the way players interacted with the virtual world of gaming. Blockchain technology is ever-evolving and introduces decentralized, secure, and anonymous transactions to the gaming world. Below, we will look at how crypto fits into the gaming industry.
In-Game Purchases
Crypto can be used as a secure and decentralized payment method in gaming. Before cryptocurrencies were used as legal tender in gaming, all transactions were made using fiat currencies. It took some time for the transactions to be processed and they were costly. These setbacks were removed when gaming platforms started accepting crypto as a payment option. Cryptocurrencies are not limited by borders, unlike fiat currencies, which makes it easier for gamers all over to make their transactions. Players can use crypto to place bets and buy virtual assets or upgrades within the game.
The Most Popular Crypto Used In Gaming
Considering the growing prominence of cryptocurrency in the gaming industry, a cryptocurrency recommendation could be instrumental in selecting the most suitable digital asset for in-game transactions and immersive gaming experiences. Yash Majithia notes that finding the best crypto can be tricky, even for experienced crypto holders, so recommendations are always useful. The following cryptocurrencies are just a few examples of the many digital currencies that are used in the gaming world.
1. Bitcoin (BTC)
Bitcoin is a trendsetter as it opened the way for all other cryptocurrencies. Because it is well-known, it can be used without any problems or fear of it not being received well by gamers.
2. Ethereum (ETH)
Ethereum became popular in gaming because of the smart contracts it offers. The blockchain technology that it runs on allows developers to make decentralized applications and non-fungible tokens (NFTs) for unique virtual assets.
3. Binance Coin (BNB)
The Binance coin is used in many gaming applications and gives discounts to users on transaction fees.
4. Enjin Coin (ENJ)
Enjin is a cryptocurrency that is specially designed for gaming. It gives players the security to own in-game assets and trade them.
5. Litecoin (LTC)
Instead of using fiat currencies that come with high transactional fees, Litecoin can be used to make microtransactions. Litecoin has low transaction fees and quick processing times.
6. Ripple (XRP)
Ripple offers gamers low fees on transactions and processes its payments in record time.
7. Chiliz (CHZ)
It is not surprising to have a crypto that is dedicated to sports, like Chiliz. It is used mostly in sports and eSports-related gaming.
Decentralized Gaming Platforms
The incorporation of crypto in gaming brings with it new gaming structures, through decentralization, that were not possible with traditional systems. Decentralized gaming platforms have changed the way games are operated and the gaming experience of players as game developers and operators no longer have central control over game management, rules, and economy. Decentralized systems allow for platforms to move away from the traditional systems that are controlled by a central body. They give more control to players over their assets, removing the risk of game developers manipulating games or their outcomes. This makes transactions more secure and transparent as every transaction is recorded on the blockchain.
Increased Security
The use of crypto offers new technologies that reinforce security on gaming platforms. Traditional gaming systems are plagued by security concerns and other vulnerabilities. Most of these concerns are addressed by blockchain technology which allows for all transactions to be recorded in an immutable ledger, making it impossible for them to be changed. This makes it nearly impossible for hackers to steal people’s accounts or their in-game assets. If a game developer decides to shut down their game, players will retain their assets since they will be stored on the blockchain.
Play-to-Earn
With the play-to-earn model, crypto introduces new ways for players to earn cryptocurrency tokens as they play games. The integration of cryptocurrency into gaming platforms has made it possible for players to make a living through their hobbies. Players can enjoy their favorite games while earning crypto in the process. Cryptocurrencies are used as a way of attracting players to gaming sites by offering loyalty programs and in-game rewards such as virtual items or skins. Game developers are pulling in players by giving them a chance to earn crypto for the time they spend in the game, completing tournaments, or making certain game achievements. The rewards can either be tokens or any crypto-based assets.
eSports and Betting
The decentralized platform that supports cryptocurrencies comes with smart contracts that ensure the fair distribution of prize money. Sports betting platforms built on blockchain technologies improve the fairness and transparency of esports competitions and betting. The smart contracts and decentralized platforms that they use make it easier to follow up on results and verify them, give out rewards, and carry out betting activities securely and fairly.
Microtransactions
Crypto microtransactions oppose the traditional concept of asset ownership where bought assets have no in-built value and cannot be sold or exchanged. Microtransactions are an easy way for game developers to earn money from their games, but that depends on whether they are using traditional payment systems or have incorporated blockchain technology in their gaming platforms. With traditional payment systems, developers are faced with high transactional fees which make it challenging for them to benefit from microtransactions without putting a large amount of their income on the line. Using cryptocurrencies reduces the transactional fees which is a benefit for both the players and the operators.
Transparency and Fairness
The use of crypto in gaming has given players ways to prove game fairness and make sure that they are not cheated, something that was difficult when only traditional gaming systems existed. Successful online gaming cannot exist when there is a lack of trust between players and game providers. If game developers use blockchain technology, they can create provably fair games that show players the extent of game fairness and transparency. Players can see the fairness of each game’s outcome since everything would be recorded on the blockchain, removing any room for operators to manipulate game results.
Tokenization of Game Assets
Through tokenization, crypto brings new ways to own gaming assets and prove ownership of those assets. Tokenization is when in-game items, like virtual currency or assets, are changed into digital tokens and stored on a blockchain ledger. The tokens are known as Non-Fungible Tokens (NFTs) and they can be bought or sold using blockchain technology. Each token is different, making it difficult for someone to copy or replace them.
Conclusion
Gaming and crypto make an indestructible pair as there are a lot of benefits that come with the gaming industry’s adoption of crypto. Gamers can buy and sell their digital assets without having to worry about security and safety. The decentralized nature of the platform makes transactions safe and secure for players. The future of crypto in gaming is promising to be better as more players and operators adopt these technologies.
