If you are not living under a rock, you must have heard the name of cryptocurrency. It is a type of digital currency that is designed to work as a medium of exchange as it uses a computer network and is not reliant on any central authority. No central authority such as banks or even the government is obliged to maintain or uphold it. This decentralized structure allows the digital asset to exist and operate outside the control of the governments or any other central authority. So naturally, several industries have taken a keen interest in them and have been using them for their transactions. This started in the industry of gaming as well. But the real question is, is it the future of online gaming? Let's find out in detail.
How do Cryptocurrencies Work in Online Gaming?
The Co-Founder, of Yield Guild Games, Gabby Dizon said, Blockchain gaming has the potential to disrupt the gaming industry as we know it today. It opens up new possibilities for ownership, player agency, and value exchange." But why did she say so? How can you use crypto in online gaming? Let's discuss that.
A player can buy and sell cryptocurrencies via exchanges from wallets. Such as, when a player or a user wants to send any unit of crypto to another user, she or she sends it to the digital wallet of that user or player. In the online gaming industry, the monetization strategies are in the form of in-app purchases, or advertising along with affiliate or referral marketing.
The in-app purchases allow players or users to buy anything directly from the game they are playing such as custom characters, extra lives, or coins. In online cryptocurrency games, the users buy their required items by using cryptocurrencies. On the other hand, when it comes to in-app advertising, it is presented in the form of rewarded ads. In these, the players or users have to complete some particular tasks such as watching video advertisements or filling out a survey to earn the cryptocurrencies. In affiliate marketing, the players have to click on affiliate links or refer them to a friend to earn the cryptocurrencies.
The Benefits Which Can Make Cryptocurrency the Future of Online Gaming:
While playing online games, players encounter several problems or even frauds related to transactions. This is where cryptocurrency is proving to be crucial so let's dive straight into the benefits.
a) Safety and Security -
Many online gaming websites have trust issues when it comes to making multiple purchases. So when blockchain technology is used in online gaming, it prevents the illegal trading of digital currencies and assets. On top of that, this technology also puts an end to hacking and stealing as it creates an inflexible ledger.
b) Concealing Identities -
While you are playing an online game, your money might be in a secure position, but your personal information may not. If you are not comfortable sharing your personal information, then using cryptocurrencies in online gaming is a smart choice for you as these purchases are discrete unless and until the users decide it is not.
c) Instant Transactions -
The most significant advantage of using cryptocurrencies is that there is no authority of bureaucracy as it removes inefficient intermediaries from the entire process. It makes the process of exchanging cryptocurrencies instant and quick.
d) Anytime and Anywhere -
Cryptocurrency has another huge advantage; it allows the players to play the games internationally without making them face any exchange rate problems or security trouble. It also provides an option for online gamers to play without confirming their identity or email and at the same time, the transactions can happen from anywhere in the world, at any time.
e) Cost-effectiveness -
When it comes to bank credit cards, bank transfers, and PayPal accounts, cryptocurrencies are the most cost-effective. Using cryptocurrencies means there are no handling fees and exchange fees as it is based on "peer-to-peer transactions" between the players.
To conclude, cryptocurrencies and blockchain technology may sound technical and not easily accessible, but their benefits for the online gaming industry are apparent. Even though it is still in its early stage, the future most definitely seems bright.
