It would appear that the gaming industry and the blockchain were destined to work together. For a long time, gamers have been willing to invest a significant amount of both time and money in a well-crafted virtual world. Blockchain technology, which can enable the robust worldwide exchange of digital currency and items, provides the appropriate road for the expansion of this market. These two spheres are coming closer together thanks to crypto games, and although it’s still early days, the indicators of what’s to come are promising.
This article delves into the realm of crypto games, providing an explanation of what they are and illuminating the advantages of participating in them.
What are crypto games?
What exactly are crypto games? Video games that are referred to as crypto games are those that base their in-game economies on cryptocurrencies. Blockchain technology is utilized in cryptocurrency games to facilitate the buying, selling, and exchanging of digital tokens both within the game and outside the game on exchanges.
Tokens used in cryptocurrency games may be less vulnerable to the dangers associated with other in-game currencies, such as the potential for a game developer to go out of business.
This is because blockchain technology makes it possible to store information in a decentralized manner. The phrase “cryptocurrency games” can also be used to refer to games that teach players about cryptocurrencies, how they function, and other related topics.
Although crypto games and blockchain games are sometimes used interchangeably, the two names do not refer to the same thing fully. Games that merely use blockchain technology to support the use of non-fungible tokens are also considered blockchain games.
Blockchain games comprise both of these types of games (NFTs). NFTs are not intended to be handled in the same manner as other currencies, including cryptocurrencies, which are to be considered comparable to one another. NFTs, on the other hand, are responsible for assigning individual ownership to distinct digital assets.
Types of crypto games
The idea of cryptocurrency in video games has spread to a wide variety of game types in recent years, including trading card games (TCGs), simulators, and a great number of others. A new subset of the economy has emerged within the crypto sector as a result of the fact that crypto gaming assets can be easily traded by their owners. This subset of the economy is one in which players may purchase and sell the digital products they have acquired.
On the other hand, there are many different kinds of gaming activities that, in one way or another, depend on blockchain technology.
NFT Based Games
Through the convergence of blockchain technology and gaming, play-to-earn business models have emerged in the context of non-fungible token-based games. When it comes to keeping track of in-game products and tokens, crypto games make use of a distributed ledger that is built on top of a blockchain network infrastructure.
Through the use of this framework, it is possible to generate a non-fungible token (NFT) within the game, and those who acquire it will receive full ownership benefits. Because gamers, not game producers, are the owners of non-fungible tokens (NFTs), you can trade them in open NFT exchanges for cryptocurrencies or even traditional currencies.
The use of this manner of operation makes the potential of stealing in-game assets completely non-existent. In a game that is powered by blockchain technology, all of the in-game transactions are entirely safe, and players have a much easier time exercising control over their gaming experience.
The ability to run decentralized applications is one advantage of blockchain technology for the gaming industry. dApps are computer programs that, rather than being executed on a single server, run across multiple distributed computing platforms. To put it simply, decentralized applications (dApps) make use of blockchain technology to run on a trustworthy and secure network that is supported by its users.
Because of this, decentralized applications are not centralized, and as a consequence, there is no third-party authority that can interfere with the way they function. Peer-to-peer networks, such as Ethereum, Loom, or Waves, are the platforms upon which decentralized applications are built.
The crypto revolution has completely overtaken the gaming business, but that hasn’t stopped the betting industry from jumping on board as well.
Players frequently exercise an increased level of care when participating in online gambling due to the widespread fear that they may be defrauded. In recent years, there has been a proliferation of blockchain-based gambling crypto initiatives, all of which have the goal of finding a solution to the issue of maintaining fairness.
These types of gambling platforms make use of blockchain technology to keep track of all of the wagering records within an open blockchain. A strategy like this renders it impossible for the casino to influence the outcome of any bet in any way.
There are also crypto games that use centralized control yet take advantage of the benefits of cryptocurrency as a payment method.
The use of Bitcoin and other prominent cryptocurrencies as betting options is becoming increasingly commonplace in online casinos. The adoption of cryptocurrency tokens and several other blockchain-based solutions has contributed to an uptick in the number of people betting at online casinos.
Bitcoin casinos enable players to fund their account with any approved cryptocurrency within minutes, but the deposit process at traditional online casinos that only accept traditional payment methods can take several hours. Bitcoin casinos accept all cryptocurrencies.
In addition, there are cryptocurrency platforms such as Stake casino that combine the functions of an online casino and a sportsbook into one convenient location. Customers can participate in a variety of gaming pursuits using a single account thanks to this versatile method.
The economy of crypto gaming
The term “cryptocurrency gaming” refers to a type of decentralized gaming in which players can own unique in-game assets and sell those assets to other players in exchange for a currency from the outside world.
It is possible to trade digital assets for cryptocurrencies, which may then be used to buy other digital assets or converted into money that can be used in the “real world.” To put it more simply, crypto games are created by storing information about assets. These assets, in turn, are governed by the economic concept of supply and demand.
How do crypto games work?
How exactly do crypto games function? In traditional gaming and development, the creators of the game own all of the digital assets, including the in-game money known as XP, skins, weapons, characters, and cars, among other things. These types of digital assets are nothing more than a record set within the game’s database that is held by the game’s developer.
The participant retains ownership of any objects they obtain while participating in a crypto game. Because these games are developed on blockchain networks, every computer that is linked to the network has access to the same information (all of it).
This decentralizes control over the information, which in turn empowers both the players and the developers of the game equally.
The utilization of blockchain technology in crypto games is possible for two distinct reasons. You could build an entire game on a blockchain, or you could just use it to manage the in-game currency.
For starters, each time a player does something within the game, a new block is added to the distributed ledger (blockchain). In the second scenario, accessing digital assets is possible through the use of tokens that are not fungible.
Benefits of crypto gaming
Because of its many significant benefits, crypto gaming has emerged as one of the most disruptive trends in the gaming industry.
The majority of methods for making payments include the use of third-party processors, which can cause transaction times to be lengthened and involve unnecessary mediators who have access to sensitive data. That is why the introduction of crypto was such a welcome change.
The deposits and withdrawals are processed immediately, and there are no middlemen required. When there are a lot of people using the system at once, it is possible that there could be some delays, but fortunately, there are a lot of wallets and exchanges that can get around this issue.
There is no need to provide any personal information when using blockchain technology, as was previously mentioned. You can avoid providing your email address and phone number, in addition to satisfying several other prerequisites, if you gamble online.
The transactions are easy to understand and convenient, and they do not depend on your actual location in any way, which adds flexibility and accessibility to the process.
The elimination of transaction fees is blockchain technology’s most immediately noticeable benefit. Some exchanges may charge you a fee regardless of the size of the transaction (the more pending payments, the higher this commission is). However, video games do not charge any fees for cryptocurrency transactions, which means that any profits are entirely yours to keep.
When playing games online or engaging in other kinds of activities that take place on the Internet, one of the most significant and essential concerns not only for game producers but also for players, is that of maintaining a high level of security.
Fortunately, blockchain is one of the most secure technologies now available on the market. It virtually eliminates the possibility of someone stealing your coins or personal information, and there are even physical wallets that can only be opened by someone who has a one-of-a-kind and quite complicated seed phrase.
All of the different kinds of crypto games have a huge impact on the cryptocurrency business as a whole and offer a great deal of opportunity to millions of players. In the future, we will witness games of a higher quality because the evolution of blockchain games will continue.
It is immediately obvious that the business has a significant amount of untapped potential, not only for customers but also for developers.
The use of cryptocurrency in gaming is at the front of an ongoing economic and digital revolution. At Lunar Sky Games, we are a team of gaming product consultants with over 10 years of expertise in the industry. We work in partnership with web3 companies to help them build and grow their products. We help turn your vision into a reality. Contact us now for a consultation.