How Crypto and Blockchain are Changing the Online Gaming Industry

Online gamers recognize the thrill of unlocking levels, acquiring skills and buying tools and weaponry in virtual worlds. Many players today invest not only their time but real money in these experiences to customize their environment.

Longtime gamers also know the anguish and frustration when their favorite game falls out of fashion or when their account gets compromised or, worse yet…deleted.

In 2018, Worldwide Asset eXchange surveyed 1,000 video gamers in the US and found that 75% of online gamers wished to exchange virtual assets from the game for a currency they could leverage to buy and sell on other platforms and in real life.

And that is just one way how Cryptocurrencies and Blockchain are revolutionizing the online gaming space. In short, this is how cryptocurrencies are enabling the gaming industry to deliver a secure and accessible medium for players to make money.

The Place of Cryptocurrency and Blockchain in the Online Gaming World

Secure transactions in online gaming

A major challenge with online gaming platforms is the anonymity of users and distrust among players. Blockchain can eliminate unlawful digital transactions and prevent hacking and stealing of keys through immutable ledger and non-duplicable keys.

Smart contracts powered by Blockchain can improve player confidence in making transactions on gaming platforms.

Location-independence

Cryptocurrencies mean players can play internationally without worrying about exchange rates and various currencies. Players can enjoy gaming without revealing their identity or email address.

Moreover, online gamers can pay and withdraw funds faster without any restrictions from anywhere in the world.

Trust with Blockchain to trade in-game items

Whether players want to buy or sell in-game items or trade them, Blockchain can enable the trust required to facilitate such transactions. By tying virtual in-game items to Blockchain, players can use them as digital assets and securely exchange them in the gaming community.

One of the notable developments in the Blockchain area for online gaming was the development of ERC-721 Tokens that work through Smart Contracts and run on Ethereum. These tokens allow ownership of unique digital items that are recorded and tracked on Blockchain.

Anonymity

With traditional games, your money may be secure, but your identity is not. If you are unwilling to reveal your identity online, Blockchain-based games could be perfect for you. Unless a player freely publishes their transactions, all purchase information stays private.

That’s because each transaction on a Blockchain platform generates an anonymous address for each consumer purchase.

Buy, sell, trade accounts with security

With most online games today, a developer can ban a player account if the latter tries to sell it. That means the time a player invested in developing their account and advancing through the game can get lost in the transfer to another player.

Also, legitimate players may get scammed online in carrying out these transactions. Blockchain puts an end to all of that and allows players to securely sell, buy and trade their gaming accounts.

Transfer assets between games

For instance, the success of the Super Mario Maker series proves that players are massively interested in combining elements from different online games to create unique scenarios. While games will need to be programmed for these scenarios, it’s worth it if the income potential and interest development are high.

Blockchain-based gaming can make such transfers reliable and possible.

Developers don’t lose money to middlemen

One of the biggest selling points of Blockchain is its ability to facilitate peer-to-peer transactions and eliminate mediators who slow down transactions and make them more expensive. For instance, Blockchain can connect developers to gamers and eliminate the need for app stores.

Without a third-party involved, developers can maximize their profits and decrease the price of their games.

The Growth of Crypto Gaming and its Future

The global gaming market totalled to USD 173.70 billion in 2020 and is expected to reach USD 314.40 billion by 2026. As 2020 witnessed industries slowing and shutting down, the online gaming industry surged.

The industry also witnessed interest in cryptos as a way for online gamers to make money through all the methods discussed above.

A typical example of a crypto game can be CropBytes. In this farm simulation game, players can expand their portfolio of assets by using NFTs (Non-Fungible Tokens) and cryptos in their farms. 

A favorite with over 80,000 players, this game enables players to earn money while playing.

Another raging example would be the blockchain game CryptoKitties. Players use Ethereum to purchase NFTs of cute cartoon cats with different traits that can be bred to produce unique offspring. The rarity of their characteristics determines their value.

How much would you predict is the worth of an NFT of a cat? It could be up to $170,000- the highest selling one. The CryptoKitties economy (yes, economy!) is worth $10 million in annual transactions as players take home 80% of that.

Another game, The Sandbox, enjoys a market cap of $1 billion. Put all of these Blockchain games together, and we’re already looking at several billions of dollars.

In short, the rage of Blockchain and Cryptocurrency gaming will only go up from here.

If you have an idea for an engaging and immersive online game based on Blockchain or cryptocurrencies, talk to one of our expert Blockchain consultants today.

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