Cryptocurrency has the potential to alter the world, but it may begin with games. Microtransactions are so common in today’s video games that they’re ready for a crypto resurgence. As things stand, the most obvious application of cryptocurrency in the gaming business is as a replacement for traditional card-based online transactions. Developers may eliminate their reliance on third-party payment systems by inventing their own, completely new online currencies, which gamers could use to buy gear and cosmetics from each other as well as from the developers. It would give the creator more control and, perhaps most enticingly, it would put a stop to the whims of regional pricing, as everything would be priced in the game’s own currency. There’s also the possibility of ‘tokenizing’ in-game assets, which would bind them to the blockchain and give them a life (and value) outside of the game. If that sounds perplexing, consider this: currently, if you buy a new outfit in an online game, you only own it on the game’s servers. If a developer decides that you should no longer have it for whatever reason, to take it away therefore is a walk in the park. Even if there aren’t any irrational developers, there’s always the risk of server crashes or malicious attacks, which can wipe out your hard-won progress and flashy rewards. By putting those items, as well as your ownership of them, on the blockchain, the same technology that powers cryptocurrencies, you create an indelible record of your ownership and give your possessions a tangible value and existence outside of the game. Currency transfers across games might quickly turn into item transfers. You’ll eventually have a mini-economy on your hands. But, despite their lofty ambitions, cryptocurrencies have failed to overcome all of the issues that have affected them since their inception. Transaction confirmation time (the time it takes for a trade to be registered by the blockchain after you start it) is usually around 10 minutes, but it can take up to an hour. It will be difficult to persuade players to accept a new system that is so much slower than the previous one, especially since the old one was almost always quick. Furthermore, unless the underlying technology undergoes some type of revolution, that wait isn’t likely to become any shorter any time soon. It’s built-in for security reasons, which means the first game developer to truly embrace crypto will need a massive marketing push to persuade their player base of the benefits of the new method. There’s also the notable example of a blockchain ‘bank robbery,’ which has exposed flaws in the system’s much-touted security credentials, although some experts pointing out that the event isn’t as exciting as it may appear at first. Many industries, including video games, have been transformed as a result of the coronavirus epidemic. Spending a few hours playing for leisure is a thing of the past for some players. Some may believe that the rise of e-sports has already transformed gaming from a hobby to a profession, but what has happened in recent months has gone even farther. Games like Axie Infinity, CrytpoKitiies, and The Sandbox have spawned a new digital economy that has turned fun into money. Not because they sell millions of copies, but because blockchain has made cryptocurrency the major point of these games, which are known as crypto games. The fundamental engine of this revolution, Axie Infinity, is the simplest example of how this new economic activity works. Players gather, train, feed, buy, and trade “axies,” which are roughly based on the axolotl, in a game similar to Pokémon. The goal of the game is to acquire these characters by using small love potions to feed them. These potions have been turned into a cryptocurrency known as Smooth Love Potion (SLP), which can be traded on the digital market, thanks to blockchain technology. The strongest players can earn up to 1,500 SLP every day (about $470, €400). However, without addressing NFTs (non-fungible tokens), which have already altered the world of art and collectors, this explanation is insufficient. The first-ever tweet just sold for $2.5 million (€2.13 million), and NFT may be used to buy almost anything collectible, which makes sense if the project to build metaverses succeeds. In an ideal future, people can go through different shared experiences with millions of other users in a metaverse, which is a realm developed in cyberspace that can be accessed via virtual reality. Because these digital characters are transformed into NFTs, they can be bought and traded in Axie Infinity. They have a one-of-a-kind ether (ETH) value, the second most popular cryptocurrency after bitcoin. Aside from the axes themselves, users can trade in-game goods like flowers, houses, and barrels with them. According to Jordi Armbruster, executive director of EthicHub, the digital economy has been utterly altered. Axie Infinity has generated over $2 billion (€1.7 million) in transactions in just a few months. “Previously, you had to pay to get into the game world. That logic has evolved in the blockchain era. You split the value you’ve made. You create a token and distribute it to the entire community, which in this case is other players.” To begin playing Axie Infinity, new players will require at least three axes, which can be purchased or rented. Although the price fluctuates, the first investment is approximately $350 (€300). The simplicity with which new assets can be created is one of cryptocurrency’s advantages. This is the situation with Axie Infinity Shards, a cryptocurrency based on Ethereum. Users have voting rights in the title’s governance, which entitles them to a piece of the community’s wealth. “They have even taken the digital gold represented in the game and turned it into real gold. They have transformed a digital activity, typical of a metaverse, into an activity with tangible value in the physical world,” says Álex Preukschat, a representative of the Blockchain Iberoamérica and Blockchain España alliance. Many big companies are coming forward to integrate the use of cryptocurrency for transactions and when we talk about gaming industry, developers are coming up with ways to use cryptocurrency to buy and sell in-game items, cosmetics, unlock characters and so much more. What makes it better than other forms of payment is that players can directly make payment to one another using their digital wallets, which eliminates the taxes from the governments.
But that’s not it, there are a ton of benefits in using cryptocurrency in games and here are a few of them to start with:
No Hidden Charges
One of the main benefits of using cryptocurrency is that you won’t have to pay any hidden fees. You don’t even have to worry about different exchange rates anymore.
You can make payments directly using the p2p (peer to peer) method which eliminates the middle man.
No Long Processes
Another reason why game developers as well as gamers are leaning towards cryptocurrency is the fact that it eliminates all sorts of legal process set by the government and banks.
You can make instant transactions and the best thing is you don’t even have to reveal your identity as the transactions can be completely anonymous.
More Value
Gamers are spending millions of dollars in micro-transactions in games like CSGO and Fallout 76 but for each transaction they make, some of the amount is deducted in form of taxes and fees, which in turn makes it less profitable for both the player buying the product and the game that sells it.
With the use of cryptocurrency, you receive maximum value for your buck which will deduct the prices of the products you buy and increase the number of buyers.
Final Thoughts
Many game developers are already working to jump in on the block-chain technology while it’s still in infancy and one of the best examples I can think of is Decentral and, which is a virtual world filled with Decentral Games like roulette, poker and backgammon where the players can trade using the cryptocurrency, even buy the pieces of virtual land in the game. At an online casino, real money exchanges hands regularly – deposits are made and winnings are withdrawn. Cryptocurrency’s ability to facilitate fast transactions has made it a natural choice as a method of payment for online games.
For the players, there are added incentives to playing online games with cryptocurrency. This currency has a high security threshold and is not as easy to hack compared to a normal bank account.
Many people in the gaming community, both developers and players, hold cryptocurrency. As a result, crypto gaming will continue to find an outlet and a market. Cryptocurrencies and game development will continue to evolve, and as more games adopt blockchain technology, we will most likely see blockchain gaming increase in popularity. The advantages of cryptocurrency for gamers continue to captivate. The concept of your job in a game environment actually having purpose, of producing real value and real rewards, seems attractive. However, there are still significant obstacles in the way of general adoption, not least because of the slowness with which it does business and some recent negative press attention. Still, we’re hoping that all those hours spent playing DoTA 2 will result in something more than a severe case of carpal tunnel.