Over the past few years, cryptocurrency has gained a lot of attention. The use of advanced blockchain technology is set to revolutionize the entire industry. Asides the fact that the market is drawing the attention of young and new investors, developers have also begun creating games using blockchain technology.
These games rely on blockchain technology to access the crypto ecosystem.
Blockchain technology operates on the principle that information is stored by a database or ledger that is shared using a network of computers. Blockchains guarantee the integrity of information once it has been added, making them extremely secure. Moreover, all computers connected to the database can access the database, preventing any central control of data.
What is Crypto Gaming
Centralization is the main characteristic of traditional games. This means that in-game valuable assets like skins, characters, weapons, and coding used for one game cannot be used for another game. Contrary to crypto gaming, where every participant owns a piece, the resources and characters can be used with another game. In-game rewards and purchases made by users are also transferrable to other games.
In addition to the utility features that blockchain technology provides, cryptocurrency itself also boasts a value for gaming purposes as a means of payment.
How Crypto Gaming Works
The developers in traditional gaming and development own all digital assets, such as in-game currency XP, skins, weapons, characters, cars, etc. Such digital assets are simply a set of records in the game’s database owned by its developer.
In a crypto game, the items acquired while playing belong to the player. Since such games are created on blockchain networks, all computers connected to the network have access to the same information (all of it), decentralizing control over the information, and empowering the players and creators equally.
Blockchain technology can be implemented in crypto games for two purposes. A blockchain can be used to create an entire game or only for the in-game currency. In the first case, a block is created in the blockchain for every interaction within the game. While in the second case, digital assets can be accessed by using non-fungible tokens.
The Economy of Crypto Gaming
The concept of cryptocurrency gaming refers to a form of decentralized gaming in which players can own unique assets in-game and sell them for real-world money to other players. Digital assets can be exchanged for cryptocurrencies, which can then be used for purchasing other assets or converted into “real-world” money. Simply put, crypto games are made by storing information about assets which in their turn are subject to the economic principle of supply and demand.
Types of Crypto Games
The concept of crypto games has now penetrated many game genres, from trading card games (TCGs) to simulators and many more. Since crypto gaming assets are easily tradable by their owners, it led to a new branch of the economy within the crypto industry where players can buy and sell their digital goods.
However, there are several types of gaming activities that rely on blockchain technology one way or another.
NFT Based Games
Play-to-earn models have been spawned through the integration of blockchain and gaming. Crypto gaming uses a distributed ledger, which sits on top of a blockchain network framework, to store in-game items and tokens. A non-fungible token (NFT) can be created within the game through this structure and its owners are provided with complete ownership benefits. Gamers are the owners of NFTs, not game publishers, so you can exchange them for cryptocurrencies or even fiat currency in the open NFT marketplaces.
With this model of operation, the possibility of theft of in-game assets is excluded. The in-game transactions in a blockchain-based game are completely secure, and players can control their gaming experience more easily.
One good aspect of crypto gaming that blockchain enables is Decentralized Applications (dApps). dApps are computer applications that run on distributed computing systems instead of being executed within a proprietary server. Essentially, dApps use blockchain technology to operate on a reliable and secure network that is backed by its users. As a result, dApps are not centralized, hence, there is no third-party authority to interfere with their operation. Peer-to-peer networks like Ethereum, Loom, or Waves serve as the platform for decentralized apps.
DeFi, a new financial ecosystem completely free of third-party control, is now available thanks to dApps and blockchain technology. A wide range of financial products and services can be accessed via DeFi, which is based on trusted, distributed networks. As a result, there will be fewer barriers for people to access financial services than in traditional settings.
While the gaming industry has been engulfed by the crypto movement, the betting industry is not left behind.
Online gambling is an activity that is often treated with extra caution by players for fear of being cheated. In recent years, numerous blockchain-based gambling crypto projects arose with the aspiration to solve the problem of fairness preservation. Thus, such gambling systems utilize blockchain technology to store all the betting records within an open blockchain. Such an approach eliminates the possibility to manipulate the result of any bet from the casino’s side.
There are also crypto gambling platforms that rely on centralized control but utilize the advantages of cryptocurrency as a means of payment.
A lot of online casinos are now allowing players to bet in Bitcoin and other popular cryptocurrencies. There is an increase in the popularity of casino betting due to the acceptance of crypto tokens and other blockchain solutions. While a deposit process may take several hours in usual online casinos that accept only conventional payment methods, Bitcoin casinos allow players to fund their account with any accepted cryptocurrency within minutes.
Also, there are crypto platforms like Stake casino that provide the functionality of both online casino and sportsbook. This multifunctional approach allows the customers to use one account for various gambling activities.
All the types of crypto games have a significant impact on the whole crypto industry providing millions of players with a lot of opportunities. As blockchain games continue to evolve, we will see higher-quality games in the future. From the outset, it’s clear that the industry has wide potential both for consumers and developers.
Photo by Kanchanara on Unsplash