Blockchain, the backbone of cryptocurrency, is being adopted by various sectors, which is why it’s no surprise it has already found its way into the gaming industry.
Blockchain or crypto games are the opposite of traditional gaming. The latter is a centralized activity, which means all elements, including skins, assets, and in-game currency, are only confined to the game itself.
Because of centralizations, game developers retain ownership of all of these assets.
Through crypto gaming, you can own a small part of the game. All in-app purchases you make are yours, including XP, skins, and weapons. You can also transfer these and your winnings to another game.
These digital assets then attain real-world value.
Moreover, you won’t lose your in-game assets when you stop playing a game. You can sell them or trade with other players or take them with you.
Non-fungible tokens or NFTs are a type of cryptocurrency powered by blockchain and primarily used in gaming.
With NFT games, you can earn money from collectibles as you play. You can also sell or trade these assets to other players and track them wherever they go.
Benefits of Integrating Cryptocurrency in Online Games
Aside from the benefits mentioned, using cryptocurrency in online games offers more advantages. These include:
1. Faster transactions
The traditional and popular way of making in-game purchases and any online payments is by using credit or debit cards.
Although these transactions are often fast, some banks might take longer to authorize the payments. If you need coins or weapons as soon as possible, you’ll be completely disappointed if you can’t get them immediately.
Since there are no third parties involved in the use of cryptocurrencies, transactions are instant. Buying and even trading assets are faster and more straightforward.
Additionally, with crypto gaming, all transactions happen directly on the blockchain network. This means that as a player, you can instantly withdraw your tokens. Moreover, the coins immediately go to your software or hardware wallets.
2. Lower fees
Play-to-earn games incentivize prizes without hidden costs.
Cryptocurrencies use peer-to-peer transactions, which means there is no intermediary or third party involved and no additional fees to pay.
As a gamer, you can spend less on fees, allowing you to use your money to buy other assets.
If you are a developer, the lower fees let you increase your earnings faster. You can sell your power-ups at lower prices without losing profits.
3. Secure payments
Whether you are buying or selling tokens and making any online transaction using your computer or smartphone, you have to ensure you are doing all these securely.
When you transact online frequently whenever you play, you might start worrying about how safe it is to keep doing this.
Blockchain technology in gaming comes with a safer and more secure payment method. All transactions have to be validated through an established mechanism or an automated protocol, such as a smart contract.
Because of this, you can avoid getting hacked. You can get assurance that your coins are safe in your wallet and nobody can steal or duplicate your private keys.
Moreover, this layer of security can reduce the illegal trading of digital assets.
4. Reduced fraudulent activities
Online fraud happens regularly in the online gaming industry. Hackers are always looking for ways to exploit the technical vulnerabilities of various games.
If you are a developer, integrating blockchain into your online game can eliminate all chances of fraud. You can then save money and help gamers do the same.
As an additional tip, code your smart contracts correctly if you’re creating a blockchain game.
Smart contracts are computer programs for computerized transactions stored on a blockchain that automatically run to meet certain conditions.
These automated agreements make transactions transparent, traceable, and irreversible in blockchain gaming.
5. Secure storage of in-game assets
Hackers frequently target centralized servers since these are single stationary targets for them.
Once a hacker breaks the encryption, they will steal and own all the stored assets.
Blockchain games use proof of work (POW) or other algorithms and data encryption technology to keep the network secure. Because of this reason, hackers will have difficulties deleting or altering a network’s transaction history.
As a result, gamers can store their assets securely in their crypto wallets whenever they purchase digital collectibles in blockchain games.
6. Identity security
Gamers are asked to share some of their personal details to create their accounts and when doing transactions.
When these details are saved in a centralized server, hackers can have access to these sensitive pieces of information.
However, blockchain technology enables a player’s data to remain anonymous since each cryptocurrency transaction generates a new address for the user. As a result, gamers can keep their identity and sensitive information confidential.
With these benefits in mind, cryptocurrency can reshape the industry of online gaming. It can create new opportunities and business models that make various transactions more transparent, efficient, and secure for both developers and gamers. It’s a piece of technology worth learning about whether you develop games or play them.