Crypto is the talk of the hour and when it becomes an inclusive part of the gaming world, things definitely take a turn for the better. By utilizing blockchain technology, crypto gaming has revolutionized the traditional gaming model. This blog will discuss cryptocurrency, and how crypto works in games.
What is meant by Cryptocurrency?
There are numerous names for cryptocurrencies. You have probably read about the most well-known cryptocurrencies, like Bitcoin, Litecoin, and Ethereum. Alternatives to traditional currencies for internet payments are becoming more and more common. Before we move ahead discussing more crypto, let's take a look at what Crypto actually means.
A digital currency, or cryptocurrency, is an alternative payment method developed using encryption. By utilizing encryption technology, cryptocurrencies can act as both a medium of exchange and a virtual accounting system. You need a cryptocurrency wallet in order to use cryptocurrencies. These wallets can be software that is downloaded to your PC, mobile device, or the cloud. Your encryption keys, which verify your identity and connect to your cryptocurrency, are kept in the wallets.
Key concepts of cryptocurrency
Before moving ahead with crypto in gaming, let us take a look at the key concepts of cryptocurrency which makes up a huge part of crypto gaming.
With the help of cryptocurrency, dealing with individuals on the other side of the world is as simple as shopping at your neighborhood supermarket and paying cash.
You don't have to give the seller any unnecessary personal information if you pay with cryptocurrency. This guarantees that no third parties, including advertisements, banks, payment systems, and credit-rating agencies, will have access to your financial information. There is also very minimal risk of your financial information being hacked or your identity being stolen because no sensitive information needs to be shared over the internet.
A blockchain is a type of technology that secures almost all cryptocurrencies, including Bitcoin, Ethereum, Tezos, and Bitcoin Cash. A blockchain is constantly examined and validated by a significant amount of processing power.
Your cryptocurrency holdings are accessible to you regardless of where you are in the globe or what happens to any of the key intermediaries in the global financial system because they aren't linked to a financial institution or government.
On the networks for Bitcoin, Ethereum, Tezos, and Bitcoin Cash, every transaction is always made public. This means that there is no place for transaction manipulation, altering the money supply, or changing the rules in the middle of a game.
Cryptocurrency in Gaming
The centralization of traditional games prevents all items and experiences (XP) earned from playing from being used in other games. Blockchain technology, which is used in cryptocurrency gambling, alters this. The use of awards and products by players across various cryptocurrency gaming projects is now possible.
Players can also make money through cryptocurrency gambling. Players can engage in what is known as a "play-to-earn model" in a number of different ways. Take Axie Infinity as an illustration. Axies are characters that players may purchase, level up, and then sell for more money. Additionally, players can engage in combat with their Axies to gain SLP and AXS, two cryptocurrency gaming tokens based on Ethereum.
This offers a completely new component to the market: the notion that gamers can earn cryptocurrency while playing games. Three out of four players surveyed by Worldwide Asset Exchange said they hoped they could utilize their cash on different platforms, so this is a positive move.
How does Crypto Gaming work?
Many of the components seen in crypto alternatives are already present in traditional games. In-game money can be purchased with fiat currency, and players can also level up their characters and gather things. What then draws both gamers and investors to cryptocurrency gaming?
Ownership is one of the main drivers of the growth of crypto gaming. In contrast to conventional games, those that use blockchain technology grant players tenure over the items they earn. In-game things can be owned by players, traded, or even sold. The marketplace dynamic has drawn players, whether it be a Splinterlands creature card or a purple Axie with green thorns.
Players are drawn to gaming because it can be profitable. Pay-to-play models, where players must spend money to get the most out of a game, have drawn criticism in the past for several titles. Prior to cryptocurrency gaming, spending money would just enhance your experience, allowing you to level up more quickly, for example. The play-to-earn approach of cryptocurrency gaming does the exact opposite, allowing users to profit from their initial investment in the form of cryptocurrency game coins.
Famous Crypto Games
With almost twice as many monthly users as Axie Infinity, Alien Worlds is the most popular cryptocurrency game overall, surpassing Axie Infinity. The game's co-founder, Saro McKenna, has a background in corporate finance and has spent ten years working there.
Axie Infinity is more widely played than Alien Worlds, but the in-game money tells a different tale. The Axie Infinity token (AXS) was trading at $16.13 as of June 27, 2022, down 14% over the previous 30-day period. It ranks fifth out of all gaming cryptocurrencies by market capitalization, below Decentraland and The Sandbox.
The blockchain card game Splinterlands sits comfortably at number three on Statista’s list, with over 604,000 monthly players.
What does the future hold for Crypto Games?
Investors want in on the booming demand for cryptocurrency games. Sky Mavis received $7.5 million in its initial round of fundraising thanks in part to Mark Cuban's investment. Additionally, venture capital firms are joining in: Framework Ventures recently unveiled a $400 million fund for Web 3.0 games, and Andreessen Horowitz recently announced a new $600 million fund.
The blockchain gaming sector, however, suffered a severe setback in October 2021 when Steam, the largest PC game distributor in the world, stated it would not host blockchain-based games because it does not permit products with real-world value on its platform. The loss of Steam's support could have a big impact on crypto games since they would be missing out on a market leader with 62.6 million daily users.
Epic Games, the distributor, is employing a different strategy. Tim Sweeney, the CEO of Epic, stated that the company is happy to collaborate with early developers on their blockchain-based games even though it won't be producing its own cryptocurrency games. Crypto games, according to the video game distributor, would need to adhere to financial regulations and have the proper age ratings. This might eliminate many of the dangers that crypto games face and provide Epic Games' 31.3 million daily users access to the market.
It'd be safe to say that Crypto Gaming is emerging as one of the most used options in the Esports industry and it is expected to grow even more in the coming years.
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