How Cryptocurrencies Are Changing Online Gaming

There’s no denying that online gaming has undergone many significant transformations over the past few years. The industry has come a long way from simple text-based adventures to hyper-realistic, immersive experiences, and the journey continues as its popularity rises. As gaming technology keeps improving, one of the biggest shifts recently has been the growth in the cryptocurrency sector. 

With blockchain technology and digital currencies like Bitcoin, Ethereum, and others entering the gaming industry, they are opening new doors in the online gaming realm. In our opinion, it’s an interesting shift for players. Many might say that players have more opportunities, and gaming can become a lot more interesting.

Blockchain-based Games Seem to be the Trend

Blockchain technology has opened up new possibilities for online games, from multiplayer games to casino games and everything in between. Unlike traditional gaming, blockchain-based games offer players true ownership of virtual goods, where game developers control and own in-game assets. It's quite frustrating for players.

This is based on the idea of cryptocurrency not being owned by any organization or government. So, you can also see the benefits of online gaming.

When players use non-fungible tokens (or NFTs for short), they can own unique digital assets such as skins, characters, weapons, or land within a game. These assets are secured on the blockchain, so they cannot be replicated, stolen, or altered by anyone other than the owner. This has led to the rise of play-to-earn games, which allow players to earn cryptocurrency by participating in game activities or selling in-game assets in open marketplaces.

For example, games like Axie Infinity and The Sandbox use blockchain and NFTs to allow players to buy, sell, and trade in-game assets.

Also, more and more online casinos have integrated cryptocurrencies into their payment options. The ease of using Bitcoins and other cryptocurrencies has led players to learn more about how crypto casinos work and how they can use them to make deposits and withdrawals. 

Crypto casinos offer faster payouts, bigger deposit and withdrawal limits, and the possibility to play anonymously. Players can also play their favorite slots and card games with crypto like they would with real money. What’s not to like?

Play-to-Earn Ecosystem by Utilizing Cryptos

Another interesting aspect of online gaming is play-to-earn ( or P2E) games, which have become one of the most exciting developments in online gaming (thanks to cryptocurrencies). 

Traditional online games typically rely on microtransactions, where players buy in-game items or upgrades with real money. This is a cool revenue stream for the developers, but it can make players feel like their purchases hold no value after they stop playing like money down the toilet.

Cryptos change this dynamic. They introduce a decentralized economy where players earn, trade, and sell their in-game assets for real-world value. In P2E games, players earn cryptocurrency by completing missions, defeating enemies, or participating in events. They can also use it outside of the game.

For instance, Decentraland, a virtual world built on the Ethereum blockchain, allows players to buy virtual land, build experiences, and even monetize their virtual property through cryptocurrency transactions.

In this system, players are incentivized to play and invest time and effort into improving their in-game performance, knowing that their earnings have tangible benefits. This has created new opportunities for financial gain while players can also enjoy the fun of the game.

Are NFTs the Key to Motivating Players in Virtual Economies?

One of the most interesting aspects of cryptos in gaming is the introduction of NFTs, which became a huge trend some years back. These digital tokens represent ownership of a unique asset or piece of content: in gaming, they can represent anything from rare skins to entire in-game characters.

The key to NFTs is their uniqueness and provable scarcity (sort of like a one-of-a-kind painting). Unlike traditional digital items, NFTs cannot be duplicated, and their ownership is securely recorded on the blockchain. This gives players true ownership over their assets.

Crypto Offers Improved Security

Blockchain technology is built on decentralized networks, so no single entity controls anything. This decentralization provides transparency and security, two critical issues in the gaming world and something that many players worry about. 

In traditional online games, players worry about data privacy, hacking, and manipulating in-game economies. With blockchain, transactions are irreversible and transparent, which increases trust in the game.

Cross-platform Integration and Interoperability

Another significant change in cryptos and blockchain is the possibility of cross-platform integration and game interoperability. Since blockchain assets are not tied to any single game or platform, players can (in theory, at least) transfer their NFTs or cryptocurrencies across different games that support the same blockchain.

This opens the door for a new form of "meta-gaming," where assets, achievements, or characters that players acquire in one game can be used in another. This creates a more connected and fluid gaming experience overall.

This opens up the opportunity for developers to build ecosystems that span multiple games and genres. Players can use their investments in and outside of the game. In other words, NFTs provide more versatility.

For example, The Sandbox and Decentraland allow users to move their assets across different games and virtual spaces within their own ecosystems.

What Can we Expect in the Future?

Despite the promise, integrating cryptos and blockchain technology into gaming also has its challenges. All the coins have a flipside. The volatility of cryptocurrencies is one concern. The fluctuating value of in-game currencies could lead to issues with pricing, rewards, and overall economic stability within games.

Cryptocurrencies are also under scrutiny. Developers must ensure that their games remain accessible to players who may not have experience with digital currencies or blockchain technology.

Despite these challenges, cryptos are here to stay, and game developers and players will utilize them more and more.