The Impact Of Cryptocurrency On The Gaming Industry

Various new ideas regarding lifestyle and recreation have sprouted from the gaming industry. While most of these ideas are still in their early stages and far from being realized, innovations like blockchain, cryptocurrency, artificial intelligence, and many others are at the forefront of making positive changes like these realistically achievable. The prospect of this future is bringing many possibilities, setting out to disrupt the gaming industry as we know it today.

Blockchain and cryptocurrencies are enjoying a continuous rise in popularity and are set out to take the world by storm. According to the latest crypto stats, Bitcoin alone already has a daily transaction volume of $6.2 billion – over one-third the transaction volume of MasterCard!

What Is A Cryptocurrency?

Source: finance-monthly.com

A cryptocurrency is an alternative medium of exchange facilitated by the internet. It uses cryptographic functions (a system of protecting information through intricate coding) to process financial transactions.

The use of blockchain technology allows this currency to be decentralized, transparent and remain unchanged over time. Cryptocurrencies can be transferred between two parties using private and public keys. This transfer method ensures minimal processing fees are incurred, unlike those we have become accustomed to. Cryptocurrency promises a welcome alternative to the fee-laden processes offered by financial institutions.

Cryptocurrencies, Gambling And Online Casinos

Cryptocurrencies are a common feature of online casinos and sports betting, which is why gambling can legitimately be a catalyst for the adoption of cryptos. The additional convenience, security and privacy that blockchain technology and cryptos offer have made them an attractive avenue for the gambling industry.

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What’s more, many punters have come to appreciate the benefits of crypto gambling, including:

  • Bonus incentives for making deposits
  • Promotional codes
  • Deposit-free bonuses
  • Virtually fee-free transactions and processing

Crypto To Shape A Brighter Future For Global Gaming

Source: cryptonews.com

There are numerous ways in which blockchain technology is set out to revolutionize the gaming industry. Below we have listed a few of the most prominent ones.

Improving In-Game Purchases

The increasingly popular offer of “games as a service” has led to an extremely sharp rise in the presence of microtransactions in most big games, enabling players to purchase cosmetics and other accessories to enhance their gaming experience. Some games have taken a Free-To-Play approach that focuses entirely on microtransactions as their source of revenue. In contrast, others have incorporated microtransactions into their already existing Pay-To-Play model.

Today, players are willing to spend around $50 on the latest Call of Duty game while also being ready to make small purchases on new virtual clothes, weapon skins, sprays, and various other customization options.

When cryptocurrency is integrated into this, players no longer need to use third-party services to process payments, so purchasing items is instant and easy. Aside from the added convenience, this is also in the players’ best interest, as they will no longer need to pay third-party fees for those purchases.

Most blockchain startups are trying to integrate support specifically for microtransactions to use this great opportunity. Some companies are already looking to incorporate SDKs, crypto wallets, and game plug-ins that facilitate payment gateways. Visit bitalpha-ai.io and know all about trading.

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Building Real-World Incentives

Crypto offers a new possibility of real-world incentivization to the gaming world. Instead of earning in-game currency purely limited to the game itself, players can earn actual cryptocurrency with direct value in the real world.

Through the innovative technology behind cryptocurrencies, simply playing a game and collecting the rewards from doing so can enable players to earn rewards they can utilize in their everyday lives. For example, in the future, this may allow them to purchase things from Amazon, order an excellent pizza, or buy other real-life items, all with the currency they earned while playing their favourite game.

Increasing Safety And Security

Source: pcmag.com

Most blockchain platforms incorporate data encryption technology to ensure everything is safe and secure. This makes blockchain very difficult to hack while also bringing increased encryption and anonymity into the world of gaming.

But how does it all work? While it is quite a complex digital architecture, in simple terms, it works by having no single centralized server like most current systems do. Every single transaction is incorporated into the “ledger” distributed among all the millions of users utilizing the chain. The transparency and truthfulness make it nearly impossible for anything to be hacked on the chain itself.

According to a 2018 study, Accenture predicts that damages from cybercrime in the gaming industry will reach an annual amount of $6 trillion in 2021. This figure can be severely reduced by integrating blockchain-based payment systems into the current gaming platforms.

Here’s to an era of safer gaming, where players can enjoy gaming without fear.

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Giving Players A Voice In Development

In a blockchain, the development of applications is done by consensus and is not based on measures imposed by any central authority. This allows players and developers to interact more closely together.

Fortnite’s users have drastically grown from 2017 to 2019. This is mainly because Fortnite’s developers have made an effort to make the game as the users wanted.

Both players and developers can come up with brilliant ideas to improve the game. Changes are only made if the majority agrees with them. Since no one owns cryptocurrencies centrally, development is community-oriented and benefits everyone involved.

Better Work Culture

The workplace in the gaming industry, as well as the other industries, will change rapidly with the incorporation of cryptocurrencies. With Blockchain, the workplace procedures will become more efficient and productive such as formal contractual agreements between a worker and an employer, an unbiased hiring process of employees and fair collaboration of workplace practices.

Blockchain will be able to limit the manual-intensive recruitment processes by giving a proper database of applicants with skills and experiences codified to predict their abilities accurately. It can also create a fair system for temporary employment between employers and workers.

Conclusion

Cryptocurrencies have affected the real estate sector, transport companies, and of course also, the gaming market. The gaming industry, in particular, is in the midst of a revolution thanks to blockchain technology.

So if you are planning to enter the gaming space, or you already have a venture related to gaming, then look forward to networking with the best blockchain app development companies to integrate this technology into your business.