When an industry incorporates technology, it gains importance. Such a change has already occurred within video games. The recent cryptocurrency integration with gaming has added more excitement for enthusiasts. Now, player expectations have evolved and become different from the old days, such as the graphics, storyline, or music used. Things have changed!
In this article, you will explore how cryptocurrencies impact gaming. We’ll discuss how games use crypto and the pros/cons for players. Additionally, you will check out the blockchain role, NFTs, and play-to-earn models within the gaming industry. Finally, you will look at the future of this dynamic fusion.
Cryptocurrency Integration in Video Games
The gaming industry has embraced blockchain technology and Non-Fungible Tokens (NFTs), marking an advancement in video games. This change happened because players wanted new options and more adrenalin rush. This mix of online gambling and NFTs has given players new chances and turned regular gaming into a way to earn money. Players can buy and sell digital items as they do in real life.
However, like any merger’s initial stages, adjustments must be made. Here, we’ll explore the pros and cons of online crypto gaming.
Pros of gaming crypto adoption:
- Transparency: Thanks to decentralization, gamers can control their assets without intermediaries, ensuring safe and secure transactions.
- New revenue flow: Gamers can make money by playing and trading crypto and NFTs in-game items. The Play-to-Earn (P2E) idea might turn gaming into a real job for some users, as they get paid for their time in the game.
- Complete control: In blockchain games, players can decide various game aspects. This governance system gives them full control over the game.
Cons of gaming crypto adoption:
- Volatility: Cryptocurrency price fluctuations can impact in-game item values. Besides, the player’s balance can decrease in value at any time.
- Complexity: The blockchain process can be challenging to understand, and new gamers might feel discouraged by the management of cryptocurrencies and NFTs in crypto gaming.
- Lack of regulation: The unregulated market can lead to potential scams, making cryptocurrency gaming less popular and adopted than traditional platforms.
Blockchain in Gaming
In 2017, blockchain technology joined the gaming world, bringing decentralization. It offered essential concepts like safety and spreading governance. When you play crypto games, the things you own in your game are safe through blockchain. No one can easily steal or change them. You can also use your assets in different games, which makes your experience practical. All these changes have given rise to what some consider the “best gaming crypto.”
NFT’s & Play-to-Earn
The gaming industry changed for the better once Non-Fungible Tokens (NFTs) and Play-to-Earn (P2E) models emerged. Players can now own unique weapons, cards, or clothing within games.
They can also trade goods, characters, and lands while making a profit through gameplay. This new gaming idea made entertainment a way to make money and gave players an extra sense of ownership of their virtual worlds.
The concept of virtual gaming through the use of NFTs and P2E has eliminated the stereotype that gaming is only for children. Nowadays, individuals of all age groups can enter the world of cryptocurrency games. More means of income allow adults to play and have fun without stress.
*Important note: Some games require prior approval from parents.
Examples of Successful Crypto-Gaming Projects
As you now understand the basics of NFTs and P2E, let’s check out the most important crypto projects in this field.
The project has gained a lot of attention in the crypto world. It’s all about making the world’s biggest and most amazing arcade game, offering an exceptional gaming experience for players. They reward users with gaming crypto coins, which keeps their community growing.
Illuvium wants to make the first-ever gaming world that works with other games on the blockchain. It’s a huge project with many characteristics, like exploring, building cities, and fighting. Players can own virtual land and fuel tokens, meaning more people want them, increasing their price. The project puts a lot of effort into design, like the customizable avatars called Illuvitars. All this makes Illuvium one of the current top gaming crypto models.
Microtransactions and Token Economies
Microtransactions and token economies are essential for the sustainability and profitability of Play-to-Earn (P2E) games. However, the NFT games crash in 2022 emphasized the need to provide fun gaming experiences and incentives that attract real players. Focusing solely on P2E can lead to the demise of games, as seen with Axie Infinity, where investors dominated and gameplay lacked enjoyment.
Software developers should balance “Fun” and “Serious” in gaming experiences to succeed in the business. Developers must ensure microtransactions and tokenomics enhance the gameplay without being not just financial instruments. Ultimately, a game’s fun factor is crucial for its success. No token economy or P2E model can thrive for long without enjoyable gameplay.
The Future of Gaming and Cryptocurrency
What is the future of crypto gaming? It is still challenging to predict, but one can see that this new concept needs more research and creativity to stabilize it. This can be done if developers keep working on the new model, Play-and-Earn, instead of the old one, Play-to-Earn. The Play-to-Earn concept is hard to keep players interested because the gameplay is often seen as not very exciting and focused only on making money. In contrast, Play-and-Earn aims to make the online gaming experience enjoyable. It might attract advanced gamers. It focuses on fun and profit at the same level.
Play-and-Earn looks like a real solution. What makes one sure of this conclusion is the tremendous number of companies that have established projects for blockchain games relying on the Play-and-Earn principle, such as FIFA. This could expose crypto gaming to a broader audience.
Games shouldn’t feel like work, and developers have already reached this point, focusing on creating games that entertain more players with an optional way to earn. The only thing that can represent a challenge to this industry is the fluctuation in the crypto market. It threatens the growth of blockchain games.
What are microtransactions in crypto games?
These micropayments refer to transactions between players to buy and sell digital items within the game.
Can play-to-earn games be a side hustle?
Yes, some players, especially the younger generation, are considering playing as a professional career. They generate income by participating in these games and trading virtual assets for real money.