As the online world continues to evolve and grow with every technological advancement, the gaming industry has seen a massive rise in popularity and the number of people actively engaging online in that space. As expected, the other major sector making waves online is cryptocurrency, and the two powerhouses have combined forces to create a crypto gaming option for people who are interested in both! Is crypto the future? It seems more and more like it.
This new venture of crypto gaming has caused quite a stir among the online masses, but many people still have yet to experience it and don’t really know what it’s all about. This is why it’s necessary to dive into this topic and explain exactly what it is and how it works.
So, without further ado, let’s jump into it.
What is Crypto Gaming?
Virtual gaming money is not a new concept, with most games today incorporating some form of in-game currency system to help characters progress throughout the game. However, the arrival of blockchain technology has paved the way for crypto gaming developers to add an element of real-world currency to their games, meaning a player’s own money is on the line.
Gamers who engage in a crypto game have opportunities to earn non-fungible tokens (NFTs) or cryptocurrency by playing and winning a game. Those digital assets then become the sole property of that particular gamer.
In a lot of cases, in-game digital coins and tokens can be exchanged for stablecoins on either centralized or decentralized cryptocurrency exchanges. These online assets can be sold or traded on online marketplaces or directly converted to real-world fiat currency.
A number of games have already integrated cryptocurrencies directly into their gaming economic systems. These games have a “play to earn,” or P2E, system in place that rewards players' successes in games by paying them in cryptocurrency or digital tokens. Gamers can now profit from their skill or enthusiasm for gaming in a new way now and monetize their talent for real-world gains!
How Does Crypto Gaming Work?
Different games have incorporated cryptocurrencies in different ways by using various business models and economic processes.
For example, P2E games offer players different ways of earning or buying gaming tokens. The CEO and founder of the blockchain-based gaming platform Spielworks, Adrian Kris, had this to say, “Players can make money on these tokens by buying them quickly and then hoping and praying for more players to come into the game after they have bought their tokens.”
Some cryptocurrency games even earn money by utilizing in-game advertising or generating sales of in-game items like weapons, skins, or virtual lands.
The developers then incentivize players to spend more hours playing a game by paying them in crypto or NFTs for completing specific tasks. These are typically simple and straightforward tasks that involve interacting with games in a particular way, like killing a certain number of enemies or gathering a specific number of resources.
Still, other crypto gaming platforms offer different ways for crypto investors to gamble their currency. These can be casino games and other such games of chance.
Crypto Gaming Risks
Like many online ventures, especially new ones, there are plenty of risks associated with crypto games and tokens while it's still in the infancy stage.
One hugely important risk to crypto gaming tokens that players should be aware of is that the tokens are subject to general supply and demand dynamics that are usually associated with the game’s overall popularity. This means that if and when players decide to abandon a game, the demand for that game’s in-game currency may completely dry up, which would therefore make its tokens worthless.
Because cryptocurrency is still relatively new and not generally well-regulated, unfortunately, criminals are always seeking to take advantage of vulnerable or inexperienced crypto gamers by using scams or hacking means.
If a certain game’s underlying blockchain is secure, that doesn’t mean its engine or marketplace is as safe. Digital wallets that are used to store crypto gaming tokens can also be hacked or mishandled by the same criminals.
As unfortunate as this is, it’s definitely important to know and understand these things as you begin playing various crypto games.
As the popularity of online gaming and cryptocurrencies continues to soar, there’s no doubt that the crypto gaming industry will begin to form into an entire and booming industry on its own. The future of gaming is definitely online, and a big part of the online world currently is crypto, so it would make sense for both trends to come together to form a powerful combination.
Watch this space!