The game is never over: the dawn of crypto gaming
Gaming is growing faster than ever before, especially after the boost of lockdown boredom. In 2021, the crypto industry saw 2 billion USD in investment earmarked for the NFT gaming sector amid the estimated 2.6 billion gamers worldwide. Being online just for fun is no longer a primary driver for many of them. Time is money, after all, isn’t it? Even when spent for leisure.
Crypto gaming has turned the tables on the gaming industry first by making players, and not developers, the leading financial decision-makers and secondly by questioning the primal desire of people to play just for fun or unwind. Now more and more people are looking for ways to monetize their hobby and cash in on the effort they put into gaming. There were not that many opportunities. Until now.
But before we get into the details,
it’s worth understanding how it all works.
One can buy or sell cryptocurrencies via exchanges from wallets. In online gaming, monetization strategies adopted are in the form of in-app activations – purchases, advertising, affiliate or referral marketing. In-app purchases, for example, allow players to buy something directly in the game, such as coins, extra lives, and custom characters, while in-app advertising provides users with an opportunity to complete specific tasks, watch video ads or fill surveys to earn cryptocurrencies.
A standard model in crypto games includes two types of crypto tokens. One is a governance token, which generally allows players a say in the governance of a game, and in some instances, a share in its revenue. The other is a utility token, which is used to perform specific actions within the game. Game assets (such as a sword or an e-sports trading card) can also take the form of non-fungible tokens (NFTs), with each unique token represented on the blockchain.
Let’s look at some of the benefits of using cryptocurrency in online games.
Traditional games are centralized, which means all items and experience gained while playing cannot be used in other games. All purchased items like lives, weapons, tools, avatars, etc., are not owned by the players and cannot be transferred across different platforms or games, even if they paid real money for them.
Crypto gaming changes this by introducing blockchain technology with decentralized and fair virtual markets. Now players have a real say and full control over their in-game assets and can use their rewards and items across different crypto gaming projects.
Cryptocurrency removes the bureaucracy and eliminates 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.
More for what you pay
The use of cryptocurrency allows gamers to play globally in the most literal meaning of the word, without any security or exchange rate issues. It grants them the opportunity to pay and withdraw funds faster from anywhere in the world without any restrictions.
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 intermediary. This makes the model more viable for players and game developers. Players get more for their money, and developers boost their profits.
Security is crucial when making multiple purchases in online games, as many online gaming websites have trust issues. Blockchain technology in online games prevents the 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 remain confident about the smart contracts that ensure they make secured and safe payments.
Well, are you opting in? Or out?
There is nothing new about players wanting to monetize their gaming abilities and their time in front of a screen. Blockchain gaming opens the doors wide open. Not only can you make money in a transparent virtual economy, but you’ll also have real ownership of game assets and a real say on game-related decisions. None of this was possible in traditional, centralized gaming. Until recently.