How Crypto Is Changing The Gaming Industry
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There are plenty of industries that the invention of cryptocurrency has shaken up, but perhaps none more so than the gaming industry. In recent years, in particular, cryptocurrencies have been integrated into the world of gaming in fascinating ways. As this has happened, new opportunities shave presented themselves to use crypto-centric technology, such as blockchain technology to create safer, more exciting gaming experiences. We’re going to take a look at some of the ways that cryptocurrency has already changed the gaming industry.
Security and Anonymity
One of the greatest assets of cryptocurrencies is that you only need a crypto-wallet to use them. This means that you don’t have to trust multiple companies with your banking information, which can be very beneficial considering there are occasionally data breaches. In particular, this asset of cryptocurrencies can be of great use when playing at online casino sites, as some people would rather keep their gaming hobby anonymous. Those choosing to play at a Bitcoin Casino in Canada can make a deposit using their crypto wallet and not have to be concerned about anyone knowing about their hobby. This can be especially useful for those in the public eye who appreciate the benefits of privacy.
The other aspect where cryptocurrency excels is its security. Crypto is virtually impossible to steal. This is in part thanks to blockchain technology which ensures that all transactions are recorded on a ledger that is visible to the public. This means that all transactions are recorded and can’t be disputed; essentially if your crypto has gone somewhere, then everyone knows where. As well as this, cryptocurrencies are decentralized, meaning that they don’t rely on a central bank. This makes it incredibly difficult for hackers to breach data, as they would have to take control of an enormous network of servers rather than find just one small inefficiency.
Play to Earn Gaming
In terms of innovation, the most exciting sector at the moment is play-to-earn gaming. This sector is still relatively new, with Axie Infinity being one of the most well-established games of this type. In this game, players breed Axies who function as Non-Fungible Tokens. This means that they are unique digital assets that cannot be replicated. This means that players can prove their ownership of them and sell them both within the game and on external marketplaces. In short, breeding great Axies could actually earn you real money, generally accessed as a cryptocurrency.
Some of the play-to-earn games have two or more currencies. Generally, there’ll be a basic currency, which has no monetary value but will be used to buy simple things that are needed to keep the gaming experience going. Next, there’ll be a crypto-based currency that can be used to purchase more exclusive items or trade with other players. In the Axie Infinity example, this would be used to buy or customize Axies. Sometimes there’ll be a third currency that can be purchased with crypto and functions as a special currency that you don’t have to directly earn.
The final point to make on this model is that even though it’s relatively new, there are already breakaway competitors emerging from it. The Free to Earn model doesn’t require players to make an initial investment in the game, which is something that most play-to-earn games do insist upon. Instead, this model gives players the bare necessities that they will need to begin with and rewards them in crypto or NFTs for completing milestones in the game.
Simplifying Game Funding
Making a game can be an incredibly expensive business, but cryptocurrencies may provide a clever work around for developers. Whilst the likes of Kickstarter and GoFundMe provide ways for people to generate donations in order to realize their ambitions, in this case creating a game, they don’t always offer anything in return to investors. Some projects do, but this can come at a great cost to the developer, meaning that they need to raise more money in order to meet the requirements of the project and fund the rewards for the investors.
Cryptocurrencies can be a great way to allow people to invest in an idea and reward them with crypto. For example, if somebody decided that they were going to make a game that ran on its own cryptocurrency and rewarded players with NFTs, then as a crowdfunding model, they could ask players for cash in exchange for initial coin offerings, also known as ICOs, or a free NFT specific to the game when it launches.
