How Has Crypto Changed the Gaming Industry?

I n 2020, the crypto-gaming market generated approximately $321 million in revenue, with almost 41.9 million gamers possessing cryptocurrency. With such a big market share, how has crypto changed the gaming industry? What benefits does cryptocurrency possess that make it such an indispensable item?

What is Crypto?

Crypto is basically just a short form of cryptocurrency. Cryptocurrency refers to virtual money that holds value but is intangible. You can use it to buy or sell goods, just like normal tangible money.

How Can Cryptocurrency Be Used In Gaming?

Crypto wallets are used to purchase and sell cryptocurrencies.  When a person wishes to transmit cryptocurrency assets to some other user, they transfer them to that user's crypto wallet.

  1. Gaming is one of the biggest markets for in-app purchases. In-app transactions allow gamers to buy stuff like game money, extra lives, spins, custom characters, skins, and other things directly through the game app. Gamers can buy these products with cryptocurrency or sometimes buy cryptocurrency itself in online crypto games.
  2. In-app marketing in video games takes the form of incentivized adverts, in which gamers are paid with cryptocurrency for completing specified activities, watching video advertisements, and filling out surveys.
  3. Another thing is affiliate marketing. Gamers must open affiliate links and adverts to recommend a friend to download an app, win prizes, or create an account. Affiliate marketing is a relatively new concept in the industry.

How Is Cryptocurrency Better Than Normal Cash?

So now that you understand the uses of cryptocurrency, you might be wondering how it’s any better than USD or GBP or CAD or any other governmental currency for that matter. Well, that’s just it: crypto is not regulated by any particular government, so there’s relative freedom in the way it is spent and transacted. But that’s just one benefit. Here are some more:

  1. Instant Transaction: Cryptocurrency removes unnecessary intermediaries and regulations from the procedure, allowing gamers to experience their favourite games more rapidly. It speeds up and simplifies the process of trading cryptocurrency.

Another challenge that game programmers frequently encounter is the inability to sell their stuff elsewhere other than app stores. These programmers can use blockchain to handle micropayments and get money instantaneously.

  1. Global Accessibility: The usage of cryptocurrency allows players to experience paid gaming across borders without worrying about security or exchange rates.

It allows gamers to play without having to authenticate their identification or email address, thus adding multiple layers of anonymity.  It enables gamers to spend and retrieve money from their accounts more quickly without any restrictions from anywhere around the globe.

  1. Secure and Safe: When performing numerous transactions in video games, security is critical, as several internet gaming platforms have security concerns. The use of cryptocurrency in video games prohibits unlawful virtual currency transactions.

It also prevents key theft and manipulation by establishing an unchangeable ledger, thus minimising key duplication. It allows players to have faith in the digital currencies, ensuring that they have been performing reliable and confidential transactions.

  1. No Hidden Charges: Compared to PayPal, bank transfers, and credit cards, cryptocurrency is less expensive. There are no hidden costs when using cryptocurrency, and you won't have to wait for your funds to transfer. This is due to it being a peer-to-peer exchange, connecting players directly.

This means that using cryptocurrencies in video games results in the removal of exchange and handling costs. For both gamers and game makers, it makes the design more feasible. Players receive more bang for their buck, and game developers get more revenue.

  1. Anonymity: Your funds may be safe when playing video games, but your personally identifiable information may not be.  Online cryptocurrency gaming is for anyone who is not interested or comfortable in disclosing their sensitive data to strangers online.

Furthermore, unless a user actively publishes his or her transactions, cryptocurrency transactions remain private. It's because each transfer of funds generates a new untraceable cryptocurrency address for purchasing products.

Final Verdict

Cryptocurrency has definitely changed gaming a lot, especially online gaming. It has numerous benefits which make it a crucial and absolutely necessary component of online transactions, especially because of how secure and anonymous it is. Not only that, cryptocurrency has multiple uses as well, meaning that the benefits won’t go to waste but rather be routinely made use of.

So, how has crypto changed the gaming industry? Well, it’s changed for the better, that’s for sure. It has made gaming more accessible by allowing John from Nowheresville to game with Jane from Somewhereville, which previously may have been restricted due to foreign payment problems.

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