Is Cryptocurrency the Future of Online Gaming?
Cryptocurrency has become a global phenomenon in recent years. Various industries are benefiting from the convenience of cryptocurrency, and one of those industries is online gaming.
As per a report by the Wax, around 75% of online game players want to exchange their virtual assets for a currency that they could use to buy and sell on other platforms.
Cryptocurrencies enable players to collect and trade in virtual assets, which they can exchange and trade across anywhere in the world. Hence, it offers the gaming industry a safe and easy medium to make money.
What is Cryptocurrency?
A cryptocurrency is a virtual asset secured by cryptography. It leverages blockchain technology to ensure decentralization, transparency, and immutability.
Cryptocurrencies are immune to government interference and manipulation as generally, no central authority issues cryptocurrency. The most popular blockchain-based cryptocurrency is Bitcoin. Other competing cryptocurrencies are Litecoin, Peercoin, and Namecoin, as well as Ethereum, Cardano, and EOS.
How Does Cryptocurrency Work in Online Gaming?
One can buy or sell cryptocurrencies via exchanges from wallets. For example, when a user wants to send cryptocurrency units to another user, he/she sends it to the digital wallet of that user.
In online gaming, monetization strategies adopted are in the form of in-app purchases, in-app advertising, and affiliate or referral marketing.
In-app purchases allow players to buy something directly in the game, such as coins, extra lives, and custom characters. In online bitcoin games, players buy items using crypto or buying crypto itself.
In-app advertising in online games is present in the form of rewarded ads, in which players have to complete specific tasks, watch video ads, and fill surveys to earn cryptocurrencies.
Affiliate marketing is new to the market, in which players have to click affiliate links and banners to refer a friend, earn rewards, sign up for a free offer.
Nowadays, there are online Bitcoin casinos that have adopted payments in cryptocurrencies, where players can play or trade in digital assets.
Benefits of Cryptocurrency in Online Gaming
Online games are adopting cryptocurrency to solve problems related to transactions and frauds that players encounter while playing online games.
Some of the benefits are streamlined payments, the real ownership of players, the decentralization of payments, and cross-game compatibility.
Let’s have a look at some of the benefits of using cryptocurrency in online games.
1- Instant Transaction
Cryptocurrency eliminates the authority of bureaucracy and removes inefficient intermediaries from the process, allowing players to enjoy their favorite games quickly.
It makes the process of exchanging crypto units instant and efficient.
Another issue that gaming developers usually face is the difficulty in selling their software outside app stores. Blockchain allows these developers to process nano-payments to receive payment instantly.
2- Ability to Play Anywhere
The use of cryptocurrency allows gamers to play internationally without any security and exchange rate issues.
It provides the option for gamers to play without confirming their identity or email. It allows gamers to pay and withdraw funds faster from anywhere in the world without any restrictions.
3- Safe and Secure
Security is crucial when making multiple purchases in online games, as many online gaming websites have trust issues.
Blockchain technology in online games prevents illegal trading of digital assets. It also terminates the hacking and stealing of keys by creating an immutable ledger and eliminates the duplication of keys.
It helps players to remain confident about the smart contracts that ensure they are making secured and safe payments.
4- More for Your Money
Cryptocurrencies are more cost-effective than credit cards, bank transfers, and PayPal. The use of bitcoins involves no hidden fees, and there is no waiting for your money to move.
The use of cryptocurrencies in online games eliminates handling fees and exchange fees because it is a peer-to-peer transaction between the users, cutting out the middlemen.
It makes the model more viable for players and game developers. Players get more for their money, and developers boost their profits.
5- Hide Your Identity
When playing online games, sometimes your money may be secure, but your personal information may not.
If you are not comfortable or interested in sharing your personal information, then online bitcoin games are the ones for you.
Also, cryptocurrency purchases are discrete unless a user voluntarily shares his/her transactions. It is because the anonymous cryptocurrency address generated for user purchases changes with each transaction.
As per a study by the Newzoo’s Analytics Platforms, 2.7 billion gamers will spend around US$159.3 billion on online games in 2020. As per the estimation, the market will surpass US$200 billion by 2023. It is an opportunity for crypto or bitcoin online gaming to grow.
Crypto games and blockchain technology may seem technical, but the benefits for gamers and developers are apparent. For players, crypto games improve their gaming experiences, and for developers, there is an increase in profits. Bitcoin usage is on the rise but not without problems. The development of blockchain technology in online games is still in the early stage, but the future is certainly bright.