Cryptocurrency is undoubtedly one of the best inventions of the century. You just need to look at all the amazing things it is used for. Since the birth of crypto and especially its popularization by the faceless father of Bitcoin, Satoshi Nakamoto, crypto hasn’t just changed finance; it has also changed the world. Among its many uses, crypto has become an alternative currency for regular spending. It has been used to power many digital universes, introduce Bitcoin mining free, and kickstart many exciting blockchain projects. But perhaps its most interesting use is where you’d least expect it – the gaming industry.
Crypto in the Gaming Industry
Since cryptocurrency took the world by storm, it has not just helped with decentralized currency; it has also brought massive improvements to the gaming industry. Now, gaming and crypto are practically inseparable. Research conducted by DappRadar and BGA Games revealed that blockchain gaming accounts for 41% of engagements in the crypto industry. In July 2023 alone, reports showed that the blockchain gaming industry got an investment of about $297 million, most of which will be used for building gaming infrastructure.
Benefits of Crypto in Gaming
1. Ownership and Control
The emergence of cryptocurrencies has helped players have true ownership and better control over their in-game assets. In the pre-crypto era, game developers usually owned in-game items in traditional games. Since they had total control over it, they could limit or restrict all their assets. Blockchain-based games, however, allow players to truly own the virtual assets they buy or earn. This improved ownership and control is made possible through the NFTs and, of course, the blockchain technology for recording ownership.
2. Transparency and Security
Transparency issues were never limited to the gaming industry; they were everywhere in the pre-crypto era. But now, blockchain technology in crypto has made a few significant changes, which apply even to the gaming industry. Blockchain transactions and ownership transfers are recorded on the blockchain, making it nearly impossible to alter or manipulate the data. Anyone can easily verify who owns a gaming item—no more buying stolen assets!
3. Cross-Platform Compatibility
In the pre-crypto era, gaming platforms had almost nothing to do with each other. Each platform had its own token used to buy in-app items, so it was every game for itself. But cryptocurrencies now facilitate a never-before-seen cross-platform compatibility in gaming. Since cryptocurrencies are not tied to a specific platform or game, gamers everywhere can now use the same token or cryptocurrency across different gaming systems and platforms as long as they support the same cryptocurrency. Not bad, right?
4. Economic Opportunities
Gaming is now more than an entertainment medium; it has become one of the most interesting ways to make money. The introduction of crypto into the gaming world has skyrocketed the potential for money-making. Crypto in gaming has created new economic opportunities for players. Players can now make money from playing games or trading gaming collectibles.
How Can You Use Cryptocurrency to Play Games?
1. In-game Currency
Even in the days of Super Mario, games always had their in-game currency that players earned, traded with other users, or used to buy stuff. Before crypto came, the in-game currency used to be generic coins built for the game alone and could not be used outside the game. Crypto has taken away that limitation and now allows games to use cryptocurrencies as in-game currency while also being useful outside the game.
Some games have taken advantage of this new possibility and created cryptocurrencies that can be earned, traded, and used as in-game currency. For example, ‘Axie Infinity’ uses Smooth Love Potion (SLP) tokens as its in-game currency. Axie Infinity players can earn SLP by breeding and battling Axies. They can then use their SLP to upgrade their characters, buy items, or trade with other players. Another game, Enjin, also allows developers to create their own ERC-1155 tokens that represent in-game assets. Crypto has changed the game, literally!
2. Purchasing In-game Items
Have you ever played a game where you had to buy stuff online, but it was unavailable in your currency? Well, with crypto, that’s no longer the case. Cryptocurrency makes it easy to purchase in-game items without converting to another currency.
Many games now accept cryptocurrencies like Bitcoin, Ethereum, or even native in-game currency and tokens as payment methods for premium features, item upgrades, or other digital items.
World of Ether is one good example. In the game, you can collect ‘Etherians,’ breed them to make more, and then sell and sire them for ETH. Likewise, in Decentraland, you can buy land, clothing, weapons, and other items using their native MANA token—good news for the crypto gaming community.
3. Trading Collector Items
The gaming world has expanded far beyond just a good time. Games have become a money-making platform, especially when trading collector’s items.
For example, consider Planet Calypso from the Entropia Universe. It is the most expensive in-game collectible ever sold. Guess its price? $6 million!
In the same way, real-world collector items like athlete jerseys and shoes are highly valued, rare, and unique, in-game assets are expensive and extremely valuable to players. Before crypto came, it was challenging to sell game collectibles. But crypto brought about NFT marketplaces and made it easy to trade game items. On NFT Marketplaces, games like Axie Infinity, Gods Unchained, and Splinterlands have made it easy to trade items on their game platforms. Isn’t that just convenient?
4. Play-to-earn Crypto Games
Perhaps the most important and widespread use of crypto in the gaming industry is the rise of lay-to-earn games. These are a new category of blockchain games that allow players to monetize all the time and effort they spend gaming. They allow players to quite literally “play-to-earn.” By completing quests, battling enemies, or earning achievements, players gain cryptocurrencies, crypto tokens, or even NFTs that they can later trade for actual money or use to purchase more in-game items.
Conclusion
Use Cryptocurrency to Play Games has come a long way. It has improved not just Bitcoin mining but also the gaming community’s experience and the gaming industry as a whole. But even with all the improvements we have discussed, the crypto gaming industry is still in its early stages.
As the industry continues to evolve, we can expect to see more innovative blockchain-based games and the integration of cryptocurrencies into mainstream gaming. The future of gaming may be driven by decentralized economies and player empowerment through the use of cryptocurrencies.
