How Cryptocurrency is Revolutionizing the Gaming Industry

Anyone who hasn’t recently been living under a rock must have heard of the new buzzword “cryptocurrency.”

Cryptocurrencies are the digital, decentralized medium of exchange that isn’t observed nor regulated by any government or central bank. Just like everyone holds a Visa card to shop online, soon in the future, everyone must have a digital crypto wallet that enables them to delve into the virtual world and be engaged in its activities.

Cryptocurrencies have revolutionized many industries and changed how users interact with them, and the gaming sector has been greatly influenced. In this article, we will trace the rise of crypto gaming and explore how cryptocurrency has changed and revolutionized the online gaming industry.

Case Study: The Rise of Crypto Slots

With the advent of cryptocurrencies, traditional online slots have evolved to incorporate the benefits of Bitcoin and other cryptocurrencies. Bitcoin slots provide players with additional features such as instant transactions, enhanced privacy, and provably fair gameplay.

Players can now experience seamless and secure transactions, eliminating the need for lengthy payment processes and providing them with faster access to their winnings. Moreover, using cryptocurrencies in slots offers players a higher level of anonymity, as they can play without revealing their personal information; this can be seen as a positive aspect for players who prioritize privacy and wish to keep their gambling activities separate from their financial records.

Slot games are in continuous development, and with the introduction of crypto slots, the online casino experience has become more convenient and captivating, giving players an exciting and modern way to spin the reels and potentially win big.

Case Study: Play-to-Earn Model in Decenterland

With the emergence of crypto gaming, players can earn cryptocurrency while having fun and reinvesting virtual money into the game. They can upgrade their characters, trade them for a higher price, or cash out to fiat currency. P2E games serve the dual purposes of entertainment and financial viability. One of the P2E games that excel in fulfilling both purposes is Decenterland.

Decenterland is an Ethereum-based VR platform that replicates reality. In Decenterland, players can buy and sell digital real estate, land parcels, and in-game wearables while exploring the game and engaging with other players. The game features a unique marketplace where gamers can transact in-game items and parcels using Ethereum’s network.

Non-Fungible Tokens (NFTs) and Gaming

A non-fungible token, NFT, is a digital asset tokenized via a blockchain. Each token has its unique identifier, distinguishing it from others. Owners of NFTs can sell and exchange them for money, cryptocurrencies, or other NFTs. The value of NFTs is determined by the market and the owners’ perceived value.

NFTs have been integrated into gaming and have gained popularity primarily due to their profitability potential. NFTs earned by gamers often have unique attributes and are limited in quantity. These tokens can be exchanged for a very high price if purchased. Additionally, NFTs are interoperable and can be used in multiple gaming ecosystems, allowing gamers to exchange and trade them across various games operating on the blockchain network.

Challenges of Crypto-driven Entertainment

The crypto gaming industry is rapidly growing and expanding, even bigger than the TV, movies, and music industries combined. However, for healthier adoption, crypto entertainment must overcome many challenges:

Accessibility

A crypto wallet is required for a gamer to buy and dispose of crypto. Different wallets require different disposal mechanisms. For example, hardware wallets are similar to USB drives and can only be accessed through a PC. On the other hand, mobile wallets can only be operated through a smartphone. Other crypto wallets include Guarda wallets, web wallets, and desktop wallets. As a result, gamers may face difficulty choosing the most suitable wallet.
Another accessibility disadvantage for crypto-driven entertainment is that some play-to-earn (P2E) games require purchasing an initial NFT to access the games. Gamers, especially beginners, may not welcome this requirement.

Security

Like any online activity involving real or virtual money, crypto games are susceptible to malicious activities such as hacking and phishing. What makes the cybersecurity issue more concerning is that despite the popularity of crypto gaming, some people still have a poor understanding of security measures and the malicious techniques scammers use.

The Future of Crypto in Online Gaming

With more than 3 billion online gamers spread across various gaming genres and a market size valued at USD 4.83 billion last year, gaming has become one of the most profitable industries in the world. An industry with such widespread popularity is the perfect framework for integrating cryptocurrencies. Crypto gaming has outshined traditional gaming due to many factors.

The high security and anonymity crypto provides aren’t present in traditional gaming versions. Players can safely and securely dispose of and withdraw crypto with only a username and a password. Fast transactions with decreased fees are also a plus for crypto games.

Conclusion

The play-to-earn concept and the ability to complete virtual transactions without any external, real-life intervention is something no one had ever expected. Cryptocurrency has transformed users’ mindsets and behaviors and has significantly impacted the virtual world; this is just the beginning, as future predictions indicate a very promising and exciting crypto-driven virtual world.