As the popularity of cryptocurrency continues to grow, businesses all over the world are seeking unique ways to include this revolutionary technology in their core products and services. In this arena, online gaming, in particular, has become a hub for novel ideas. Developers are looking for better ways to buy and trade in-game stuff, cosmetics, unlock identities, and more using cryptocurrency. The collision of virtual and real worlds – our metaverse – never has looked so good.
As a result of advancements in mobile gaming and PC, the gaming industry’s interest in cryptos has grown significantly. Crypto games are definitely posing a threat to the traditional gaming sector by letting players earn money while playing, therefore rewarding their time and effort. Because crypto gaming is attracting a lot of media attention and investment interest, it’s becoming increasingly vital for gaming investors to understand the specifics of this industry. But, exactly, how does cryptocurrency gaming work?
How Does Cryptocurrency Gaming Work?
It is general knowledge that cryptos may be sold and purchased easily via digital wallets and crypto exchanges. So, how does crypto work in the online gaming world? Let us understand that.
Traditional online game revenue methods include affiliate marketing, in-app purchases, and in-app advertising. In addition, today’s gamers are well familiar with in-game currencies, such as those seen in games like Monopoly or mobile games like CandyCrush. But it’s sad that these coins have had no worth outside of the game for so long.
Crypto gaming stands out in this regard since it allows players to add value to their purchases. Store tokens, such as in-game currency, are commonly maintained on a shared ledger atop a crypto network in crypto games. The blockchain is a shared ledger that enables the trading of gaming products for cryptocurrency, which can then be swapped for real money.
When it comes to crypto gaming, in-app purchases are made when users purchase products with bitcoin or purchase cryptocurrency itself. Traditional games, on the other hand, often purchase components from a central developer-owned store, which benefits the developers rather than the gamers.
While digital ownership is present in modern games, it does not have the same value or stakes as crypto games. While you are allowed to hold in-game assets, you are not permitted to sell them to other players. When compared to this, crypto games have a whole distinct concept, from virtual asset ownership to decentralized operation. Along with the fact that players’ assets are worldwide distributed and not restricted just for gaming purposes.
How To Earn Money From Crypto Gaming?
In essence, a crypto game is a video game that runs on a cryptocurrency network and includes a fully or partially distributed ledger architecture that gives the player verifiable ownership of the virtual goods in the game. As a result, players will be able to trade virtual goods for bitcoin, which can then be exchanged for real money.
Mainstream games have always been largely about enjoyment, but crypto games mix amusement with the opportunity to make real money while playing. When a player buys something, they are indirectly raising the value of the game economy. Cryptoserval, Axie Infinity, CropBytes, and Gods Unchained are a few of the most famous crypto games that allow players to earn money by completing in-game objectives with virtual goods.
Native tokens are used to produce or accumulate NFTs in NFT gaming, whilst crypto gaming focuses on transacting with other players using crypto coins. Any in-game item, such as utility, armor, land, and any other asset, may be converted to NFT and simply owned, traded, and sold on the blockchain using NFT gaming. Most of these are nft game crypto mixtures and work well with the current generation that prefers everything online.
NFTs — digital tokens intended to establish ownership of scarce intangible assets – are utilized to represent all objects in these types of games. Consider land plots, avatars, clothes, weaponry, and gold bars as examples. After finding and accumulating these goods through gaming, many players can trade them with others in digital marketplaces for different NFTs or sell them for cryptocurrencies.
Users can enhance their earning potential depending on whatever game they play by spending time leveling up and upgrading their characters, building monetized structures on their land that other gamers pay to use, or competing against others in tournaments.
All NFTs and cryptocurrency transaction data are maintained on a public blockchain to keep track of what each player possesses. A global network of computers maintains this form of dispersed, digital record-keeping technology. Using this technology in games has a variety of advantages, including:
- Players can simply demonstrate their ownership of in-game items.
- Because there is no point in failure, gamers will no longer fear losing track of their resources if the underlying gaming company experiences technical difficulties.
- Counterfeiting, removing, or destroying items earned during gameplay is not possible.
- Cryptocurrencies that are game-native can be transmitted and received without the use of a middleman for settlement, clearing, or custody.
Staking is a Defi feature in some games, where players can lock away tokens to receive annual interest and other benefits that they can use to buy other in-game things or unlock new content.
What Do You Need To Start Playing?
Users must complete the following steps in order to participate in any of the play-to-earn games:
Create a cryptocurrency wallet
To keep their virtual currency and NFTs, as well as make in-game transactions, they should create a cryptocurrency wallet. Depending on the blockchain the game was developed on, you’ll need a different wallet. For example, any GameFi game created on Ethereum will operate with MetaMask, an Ethereum-based crypto wallet service.
Purchase Starter Items
All GameFi games are available for free download. Many, on the other hand, demand users to first buy characters, decks of cards native crypto tokens, or upgrades before they can start playing.
Pre-funded Crypto Wallet
To buy starter products and move forward, you’ll need to pre-fund your crypto wallet with a certain cryptocurrency. Users of Crypto Blades, for example, must download MetaMask, buy Binance coin (BNB), and then swap it for SKILL, the game’s native cryptocurrency.
Crypto gaming will undoubtedly evolve into its own industry as more money is invested in the market. Several studios have jumped on the crypto gaming bandwagon in an attempt to profit from the current trend.
However, the growth of the online gaming industry is something that crypto gaming should try to take advantage of, as it has obvious benefits for both players and developers. Crypto gaming enhances the entire gaming experience for players while also giving developers new money streams. Crypto gaming helps in improving the gaming experience for gamers while providing new income streams for developers. From the chance to generate to the ease of transactions, the ability to play anywhere, and the elevated levels of safety and security, crypto gaming improves the overall gaming experience for game players while providing new sources of revenue for developers.