Why cryptocurrency is popular in the gaming industry

To play classic games, you need money. Although many companys enable players to use virtual gold, many players consider this to be too troublesome due to the necessity to spend money. Most users use their real money to purchase in-game items. Developers and game designers need stable and convenient basis for creating, publishing and selling their games.

On the other hand, players should be able to safely purchase in-game items, which necessitates the use of secure systems. Gamers can participate in a variety of games and create online profiles on the site. The tendency of people to attach financial value to intangible products is unshakable. Thus, it should be expected that more and more real money will be invested in online games. When an industry reaches this stage, it is subject to technological progress.

The existing gaming market is being changed by technology, which will allow players to have more power.

In 2019, the gaming business was estimated at $152 billion, and it is expected to grow by about 9.17 percent per year from 2020 to 2025. Consequently, by 2025, the market will be worth $257 billion. Every sector that grows rapidly to such a scale usually includes the latest technologies and developments. The same thing happens in the gaming sector. Let’s look at how the traditional gaming sector is mastering the mega-cryptocurrency market.

In the gaming industry, blockchain and cryptocurrency are of great value. It can be used to protect information by existing methods, for example, to enter into the blockchain the personal data of those who bet on games, or losers and winners. Blockchain can also be used to develop decentralized gaming devices in which no corporation has power over the platform.

The growing popularity of crypts among gamers

As the popularity of cryptocurrencies grows, businesses around the world are looking for new ways to integrate these technological innovations into their core goods and services. In particular, online games have become a hotbed of innovative ideas in this area. The creators are developing innovative ways to use cryptocurrencies to buy and sell in-game items, cosmetics, unlock characters and much more. It’s about a metaverse where the digital and the real collide.

While some economies were forced to shut down due to the Covid-19 epidemic in 2020, the online video game sector is one of the few that has experienced an extraordinary upturn. People automatically turned to finding entertainment in their homes throughout all subsequent rounds of self-isolation, with many countries imposing bans across the country. The number of in-game purchases grew in parallel with the growth of active accounts.

Currently, there is a significant increase in the involvement of the online gaming sector in cryptocurrencies, thanks to the development of computer games and games for smartphones. Cryptocurrency games certainly challenge the traditional gaming business, allowing gamers to earn money, thereby paying for their dedication and attention.

With additional cash injections into the industry, cryptocurrency games are on the way to becoming a separate sector. Numerous developers have jumped on the cryptocurrency gaming carousel to capitalize on the latest trend. The growth of the online gaming sector is something that cryptocurrency games should take advantage of, as they offer obvious benefits for both gamers and creators.

Cryptocurrency games are becoming more widespread due to their ability to give gamers the opportunity to collect and exchange digital assets anywhere in the world. It has also proven to be a safe and easy method of generating revenue for the gaming industry. More than 75 percent of online players would like to exchange their digital assets for money that can be used on various platforms.

As for platforms, the cryptocurrency gaming sector prefers games for smartphones. Mobile games account for 40% of the total revenue in the crypto gaming sector, and consoles account for the remaining 28%.

With widespread curiosity and interest in cryptocurrency, buying and trading tokens has become fast and easy. If you build your games on the blockchain, and allow gamers to start selling in-game items with virtual money, they will have a reliable way to do it.

Servers with centralized management are a hacker’s dream! For them, it’s just a coveted object, and as soon as they can crack the protection, they will have full control over all the items on the servers. In the gaming sector, blockchain is a technology that can change the situation. Gamers can safely store virtual assets acquired in cryptocurrency-based games in their cryptocurrency wallets.

According to Coinmarketrate.com, MyEtherWallet, for example, is a decent online wallet for gamers. They can also use significant hardware wallets such as Nano S to provide protection for their virtual currency when they are not using it. Gamers’ trading operations will be reliably protected if they keep track of their secret keys. However, they should strictly adhere to the principles of cybersecurity, for example, often create backups, avoid dangerous websites and not have too much crypto in their web and mobile wallets.

Debit and credit cards, bank transfers and PayPal are more expensive than cryptocurrency. When using cryptocurrencies, there are no additional fees, and you do not have to wait for the transfer of the payment. Since cryptocurrencies are peer-to-peer transfers between players, there are no processing or conversion fees when using them in online games. This increases the viability of the model for both gamers and game developers. Gamers get more value for cash, and programmers earn even more money.

Unlike the current situation where you don’t own your gaming assets, crypto games give users ownership of their goods. The difference is that blockchain-based games will use decentralized applications to manage transactions.

Smart contracts are executed autonomously when certain circumstances occur, and the result is permanent. All in-game goods purchased by gamers using smart contracts are moved to addresses. Smart contracts also provide clear accountability, as all players can see the terms.

Your funds may be safe when you play computer or mobile online games, but your personal information may not always be safe. In addition, if users do not actively publish their transactions, purchases of cryptocurrencies remain private. All transactions generate a new unique crypto address for the user’s purchases.

Cryptocurrency games improve the entire gameplay for players, and at the same time offer additional sources of income for programmers. So, what is it?

• GameFi

GameFi has become one of the trendiest topics on the cryptocurrency market at the moment. Its name hints at the traditional pleasure of receiving awards, combined with modern cryptocurrency innovations called DeFi. Gamers on GameFi can exchange, lend, borrow and pledge their earnings.

As the popularity of GameFi grows, the question is being discussed about whether it will revolutionize games, or take away their dollars from believers in it. Stories that GameFi can globalize the possibilities of cryptocurrencies or become a kind of technological lending suggest that people give loans to play.

GameFi is a decentralized application with incentive structures. Tokens are usually given out as prizes for performing game actions, including duels, mining valuable materials or growing virtual plants. This is also considered a “play to earn” strategy. Players can passively earn income in several GameFi apps, such as Aliens Worlds, allowing others to explore their digital territories. Users can also make a profit by borrowing assets, such as virtual characters, or investing them in staking on DeFi platforms.

Game makers often receive revenue in the form of tokens. Thus, the more people play these games and exchange tokens, the more profit they get. Some games charge a fee for certain actions, and the proceeds from them go to affiliated corporations or treasuries, from which the creators receive compensation.

When power and control returned to the players, cryptocurrency games proved to be a successful enterprise for all participants, not just for the owner. To begin with, every time a player buys an asset, the value of the game economy in which he participates increases. In addition, many businesses have appeared that allow gamers to earn money using digital products to achieve in-game goals.

• NFT Gaming

The NFT gaming industry has gained popularity in the same way as cryptocurrency games. During the first quarters of 2021, NFT games were released, which evolved from games based on the principle of “playing to earn” to collectible games focused on the principle of “pay – earn”, which gave impetus to the development of cryptocurrency games. Movements have always defined the gaming business, and the latest NFT trend will be no exception.

Although it is not surprising that the field of non-interchangeable tokens has developed into a multibillion-dollar industry, games are without a doubt one of the most suitable applications for them. Many of the NFT sectors are currently focused on games that promisingly offer gamers new opportunities to collect in-game items.

Despite the fact that the phrases “cryptocurrency games” and “NFT games” are sometimes used as the same thing, there is a significant difference between them. In NFT games, local tokens are used to produce or accumulate NFT, while crypto games focus on trading with other players. Any asset in games, such as utilities, armor, farmland or any other item, can become an NFT and can be easily acquired, exchanged and sold on the blockchain using games.

NFTs can be sent to a digital wallet in the same way as a currency. Swords, arrows, shields, sticks or stocks, for example, can be NFT in the game. They can be anything, because they are just symbols. If you have these virtual components, you can store them forever.

The NFT gaming platform allows players to buy and exchange one-of-a-kind NFTs on the NFT market. Axie Infinity is a well-known video game, currently the most valuable collection of NFT, whose sales in June 2021 amounted to more than $ 42 million.

• Quick and easy payments

Gamers can use payments in any online game, and it’s not as difficult as in other money transfer systems that require compliance with a number of requirements.

• Easy withdrawal of funds

There is an original way to withdraw funds, which has no obstacles when it comes to cryptocurrencies. Customers can transfer the earned currency or coins to their wallet, which is securely protected. To request a withdrawal, they do not need to visit any banking institutions or payment portals.

• Secure transaction

Since cryptocurrencies are accepted only for peer-to-peer transactions, they provide a very secure transfer to another person. Since the miners check the transfer, the probability of an error is excluded.

• Low transaction costs

Cryptocurrencies are much more accessible and easier than conventional forms of payment. There is no need to contact a second party, such as a banking institution or a government organization. The transaction is very fast, which increases the value of the game.

• Favorable offers

Using cryptocurrency as a means of payment in games has a number of advantages and rewards. They enjoy great deals regardless of whether they participate in games or use cryptocurrency. With a big deal, gamers save money by getting more funds for their gaming needs. As a result, consumers receive free coins and tokens simply by trading cryptocurrency.

• Increased transparency

The gaming business receives significant profits from the introduction of Blockchain due to increased transparency. You will be able to see any details of transfers and transactions in the gaming sector at any time. It is also possible to access data about cryptocurrency games that belong to someone else.

• Simple transactions

Blockchain makes purchases using non-interchangeable tokens in games much more accessible than previous methods. Because when the game has a blockchain function, it will have a built-in wallet to store your funds and other collectibles. In addition, the transaction you make to purchase these products will cost less than the previous methods, such as fiat money. Comprehensive market purchases will be provided, which will reduce transaction costs and allow you to get everything at a lower price.

Liquidity in the Cryptocurrency Gaming Industry

Considering how much cryptocurrency games depend on the gaming industry, it is also important to consider the liquidity of the industry. In its simplest essence, liquidity indicates the most significant number of goods that can be bought or sold on the gaming market at any given time. Liquidity is an accurate indicator of any market, because the higher the liquidity, the stronger the economy.

The cryptocurrency gaming industry may include NFT and FT tokens to increase liquidity. However, FT assets can be grown to have large liquidity markets and therefore be used for valuable assets. NFT funds can be used more for uniqueness and proof of ownership, which tend to have significant value, but transactions with low frequency.

Conclusion

As you have seen, cryptocurrency games are really a revolutionary change compared to how games were made in the past. According to professionals, the use of cryptocurrency in games is a small task, since it has liquidity, and players are used to smart contracts.

Moreover, since many games allow players to purchase in-game items for physical and digital currency, experts believe that the best method of keeping records of all these transfers is blockchain.

Traditional games are going to undergo a significant transformation, and it may happen faster than expected.