Bitcoin and other cryptocurrencies have attracted a lot of attention in recent years. Several businesses profit from the accessibility of crypto, and one of these sectors is online gaming.
Cryptocurrencies allow players to acquire and exchange digital currencies that can be shared and sold anywhere in the world. It also gives the gaming business a safe and simple way of earning profits.
Cryptocurrency is a decentralized asset that is protected by blockchain technology. It utilizes blockchain technology to ensure decentralization, openness, and untraceability.
Cryptocurrencies are resilient to political intervention and coercion since, in reality, no national government regulates cryptocurrency.
How Does Crypto Work in Video Games?
You may purchase or sell cryptocurrencies via wallet exchanges. For example, whenever a user needs to transfer crypto coins to another user, they transfer them to that user’s virtual wallet.
Monetization methods introduced for online games are in the context of in-app sales, in-app ads, and partner or referral marketing.
In-app purchases enable players to purchase items directly from the game, such as tokens, special items, and unique heroes. In online cryptocurrency games, players purchase crypto products or buy crypto items themselves.
In-app advertisement in online games is accessible in the form of rewarded advertisements, in which players have to perform unique activities, view video ads, and fill out surveys to receive cryptocurrencies.
Affiliate marketing is a recent development, where players need to press affiliate links and banners to refer a pal, receive incentives, sign up for a free deal.
These days, there are virtual Cryptocurrency casinos that have made deposits in bitcoins, where gamers can play or exchange in digital currency.
Benefits of Crypto for Video Games
Online games implement blockchain to address issues linked to transfers and theft that players face when playing online games.
Some of the advantages include smooth payments, true ownership for gamers, decentralization of transactions, and cross-game connectivity.
Let’s glance into some of the advantages of utilizing crypto in online gaming.
Cryptocurrency avoids government regulations and excludes unnecessary middlemen from the equation, enabling players to experience their beloved games easily.
It makes the process of transferring crypto units fast and effective.
Another problem that game developers typically encounter is the challenge in distributing their games outside of game stores. Blockchain helps these developers to accept smaller payments in order to collect payment immediately.
The utilization of cryptocurrencies enables players to play globally without any privacy or exchange rate concerns.
It offers players the choice to play without checking their identification or email. It helps players to pay and redeem funds more easily from everywhere in the world without any limitations.
Player privacy is important when performing gaming transactions, and there are numerous existing online gaming platforms that have undergone security issues.
Blockchain infrastructure in online gaming eliminates the unauthorized trade of digital properties. It, therefore, ends the cracking and copying of game keys by building a transparent register and preventing the repetition of keys.
It allows players to be optimistic regarding smart contracts that guarantee safe and reliable payments are made.
Cryptos are more price competitive than credit cards, money transfers, and PayPal. Using bitcoins doesn’t require hidden costs and the time it takes for transactions to be completed is also minimal.
Using cryptocurrency in online gaming avoids managing payments and conversion costs since it is a peer-to-peer transaction between participants, leaving out intermediaries.
This makes the framework more feasible for gamers and game developers. Players are getting more with their money and developers are increasing their earnings.
While playing online games, often your money might be safe, but your personal details might not be secure. If you’re not happy or involved in revealing your personal details, then online bitcoin games are for you.
Cryptocurrency payments are often anonymous until the customer willingly reveals their transactions. This is because the confidential cryptocurrency address created for user transactions varies with each transaction.
History of Cryptocurrency and Video Games
Video games and cryptocurrency have been connected for a while in the online space. In 2016, Steam, an online video game marketplace, started accepting cryptocurrency payments essentially enabling users to purchase video games with Bitcoin or any of the other supported currencies. Unfortunately, Bitcoin financial transactions were suspended the next year due to market volatility.
In 2018, the prominent streaming platform Twitch revealed that it will encourage its streamers to take crypto in exchange for Twitch tips, and the supported coins included Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Twitch also suspended crypto transactions for a time, but they ultimately came back and began endorsing it once again.
Twitch and Steam are two of the largest names in the video game market, and if they’re interested in looking at cryptocurrency transactions, that could be a positive indication that there’s a real argument for bitcoin and blockchain incorporation into video games. And with the acceptance of crypto slowly increasing, you definitely need to think about innovative ways to incorporate these coins.
Current Methods for Video Game Transactions
Jumping ahead to the present, it’s now obvious that microtransactions have grabbed up space in contemporary gaming culture, so let’s take a look at what they are. Microtransactions can take on several types, based on the games that are played.
Put simply, microtransactions are something you have to pay a premium for after buying the actual game if it’s costumes, in-game enhancements, upgrades, and so on. Microtransactions have been a key component of the video game community for some time now.
Even so, if there was a tipping point, it was when Fortnite arrived on the market. By now, everybody should be acquainted with the title, it’s an online multiplayer game that is available for free, and generates revenue mainly through the sale of microtransactions.
So, the way it operates, people use their money to purchase V-bucks, Fortnite’s in-game cash and then exchange it for cosmetic products. People primarily purchase V-bucks via conventional payment methods such as credit or debit cards and reward points. Let’s claim that you’re playing on the PS4. To purchase V-bucks, you can purchase PlayStation Network Gift Cards from the nearest video game or electronics shop and validate them from the online store, moving money to your Playstation profile. You can then purchase V-bucks from Fortnite’s digital store with your money.
You will see that there is a way to incorporate blockchain into the method. For instance, you can purchase discounted Bitcoin gift cards and then validate those reward points from the Playstation store.
The same goes with other online sites, such as Xbox and Steam. While this is merely a substitute in the process, it now has the additional perks of discounts and removes the need to connect a credit or debit card to your gaming profile.
Blockchain Technology and Video Games
Additional implementation of cryptocurrency and blockchain for video games in the scenario above, integrating cryptocurrencies into the microtransaction mechanism is the most apparent form of adoption. However, pushing ahead will contribute to more hands-on and creative methods in the incorporation of both.
For starters, by making their private cryptocurrency, game developers may sever their ties to traditional payment systems. Let’s presume there was a recent multiplayer online battle arena role-playing game that had its own in-game currency focused on cryptocurrency gaming. Users could exchange their existing crypto to buy the game developer’s crypto coin using a specialized payment portal and use it to purchase in-game accessories and items. For the developer, it might allow them more leverage and bring an end to the regional pricing issue. For gamers, it could be a more seamless payment structure, with rates measured by the valuation of the cryptocurrency. In summary, it’s definitely better.
Additionally, with the blockchain technology supporting the whole currency framework, players’ belongings will be registered on a stable database, saving them from unintended deletions, technical glitches, or faulty servers. Suppose the makers of this game were going to create more titles. In that scenario, the blockchain may also be a modern means of exchanging items and currency between radically different games, producing a new type of gaming environment. This suggests that in-game objects could actually take shape and meaning outside of the games they were initially created for, sort of like real objects.
Other than adding more value for the consumer, cryptocurrencies are often extremely secure and protected. There have also been several incidents in the gaming sector where broad networks are compromised and users’ payment card details stolen online and traded in black markets. Cryptocurrencies offer a safe, anonymous but also a clear form of payment that is unmatched.
The association between cryptocurrencies and video games is encouraging. But that’s just what it’s like right now. As it is still comparatively young and constantly evolving, the technology still has some room to grow and improve.
For instance, the time between purchases that are rendered and reported on the game is always about ten minutes, which might even be a dealbreaker for some gamers. Gamers currently don’t see a problem with purchasing their products, items, and accessories with additional costs due to traditional payment systems. The primary focus is on paying for and accessing the content instantly, which is something cryptocurrency is not suited for.
Anyone can see that blockchain technology has a lot of promise, particularly in gaming. The development could totally transform the business if it were embraced by the more popular gaming firms.
In the current landscape, crypto is still establishing itself as a widely accepted means of exchange. As time goes by, it wouldn’t come as a surprise to see more game developers explore crypto solutions in this thriving sector. It’s also no shock that some of the largest entertainment sites are now in it, such as people being allowed to use Bitcoin to contribute to their favorite Twitch and YouTube streamers.
To conclude, the best is yet to come when it comes to the adoption of cryptocurrency in video games!