In 2022 alone, the use of blockchain technology in the gaming industry grew by a whopping 2,000% compared to the previous year. Clearly, blockchain technology will play a vital role in the future of the gaming industry, with over $2.5 billion already raised to invest in this new form of technology in games. Things like dApps and the metaverse are powering the use of blockchain technology and making it a more common practice as every day goes by.
It has been estimated by several financial institutions that the growing metaverse will be at the top of the gaming industry, which is currently with $8 trillion. The biggest contributor to the expected growth in the metaverse can be attributed to the number of gaming apps estimated to be added to this decentralized platform. Blockchain technology in gaming has various advantages, such as creating a secure environment for players to enjoy games without worrying about getting hacked and falling victim to a cyber attack. Additionally, including blockchain technology in gaming makes transactions hassle-free and much faster.
What is blockchain and how is it used in gaming?
Blockchain technology is a decentralized online ledger that allows for secure transactions recorded on the blockchain. It can also enable players to utilize NFTs and cryptocurrencies to make purchases, which can then be traded for the money they use in real life. A great example of this can be seen with Axie Infinity, which has a global player base that has reached millions. These players all use the cryptocurrency Ethereum to make transactions.
Role of cryptocurrency in gaming
The use of cryptocurrency in the world of gaming has seen a massive increase in popularity, which has also led to cryptocurrency itself evolving. Cryptocurrency is a currency that is completely digital and extremely secure. It relies on authentication and verification to allow transactions to occur, protecting both the buyer and seller. One of the main reasons cryptocurrency has taken off in the gaming industry is because it removes the need for other payment options, which usually take a lot more time. These include using credit cards and banks, which can flag transactions and require you to contact them to authorize a payment.
Cryptocurrency eliminates this need for a middleman to facilitate a transaction, which allows for much faster transactions that are also much safer. In-game payments can be made using cryptocurrency to purchase things like themes, power-ups, unique artifacts and avatars, to name just a few. Popular cryptocurrencies currently being used in the gaming industry include Ethereum and Bitcoin, which enables players to use in-game tokens purchased using crypto to earn rewards and buy items or upgrades.
NFTs
The gaming industry utilizes cryptocurrencies in many different ways. NFTs, or non-fungible tokens, are a form of digital asset; however, they differ from crypto in that they are unique and cannot be traded in the same way. In the world of gaming, certain items can become NFTs and hold real value that can be converted into real money. This has given gamers a new way to truly own the items they have in games and brings a whole new concept to gaming. These NFTs can be sold to other players or added to a collection with the hope that they will appreciate over time.
Play and earn
Since the introduction of cryptocurrency to gaming, a new genre of games has become increasingly popular. These are known as “Crypto-Games,” in which players can actually earn cryptocurrencies simply by playing the game. The cryptocurrency earned from crypto games can be exchanged for real money, or it can be used to purchase other in-game items. Rewarding players with cryptocurrency for playing a game gives them the incentive to continue playing, as they can use the currency in their real life if they choose to. No longer is gaming just for fun – now you can earn real money doing what you love.
Virtual events and tournaments
Tournaments and virtual events have been around in the gaming industry for many years; however, the introduction of blockchain technology has the potential to change the landscape of these events forever. Blockchain technology not only creates a safe and secure transaction process but also tracks all of them, so winnings to certain teams and players can be easily tracked. This will make the creation and management of online tournaments much easier to oversee and improve the overall experience for everyone involved.
This article was provided by Maddox Theo