In 2022, the gaming industry started embracing blockchain technology faster than ever before.
It’s been a few years now that blockchain-based games have been gaining popularity but now, a whole industry of decentralized gaming applications is a reality complete with play-to-earn opportunities and NFT collectibles.
Until now, crypto has been helping the gaming industry boom and develop. However, in the long run, the reverse becomes true: Crypto is also growing as a result of its usage in the gaming industry.
Here’s how.
Role of crypto in the gaming industry
The gaming business has helped cryptocurrencies grow in sophistication.
The basic idea of crypto is simple: Digital money that employs encryption to safeguard, confirm, and speed up transactions. The result is that you can pay online without using a credit card.
Payments for a variety of in-game items, including characters, images, power-ups, themes, and distinctive artifacts are made much faster thanks to cryptocurrencies - and in the entertainment industry, speed matters a great deal.
Then there is P2E, or play-to-earn, a model that enables gamers to acquire incentives or cryptocurrency tokens directly through gameplay.
Other than that, there are many ways that blockchain technology is being applied in the gaming business. An example is creating crypto casino games. Slots, roulette and blackjack games built on the blockchain are secure, fair and fun to play.
Why gamers prefer crypto
The details above paint a pretty clear picture of the areas where cryptocurrency and gaming converge.
More of a mystery, though, is why gamers like cryptocurrency so much. But there are motivations for why gamers might prefer using cryptocurrency.
Nearly three-fourths of online gamers are engaging in trading of their virtual game assets. With the help of cryptocurrencies, you may acquire and exchange virtual in-game items quite easily.
Anywhere in the world, crypto assets are easily transferable and exchangeable practically without restrictions, as long as you transact peer-to-peer between self-hosted wallets.
That’s important these days. But overall, one of the key factors favoring crypto assets is the fact that they provide a simple and accessible way of making money.
In-app transactions, in-app ads, and affiliate marketing are the three main revenue sources of the products in the gaming sector.
Utilizing tokens makes it simpler and faster to purchase in-game products like extra lives or unique personalities. Then also, gaming sites frequently employ cryptocurrency incentives such as bounties and competitions. You may complete surveys and view video commercials in return for which gaming sites provide players cryptocurrency.
Platforms for crypto casinos are also embracing bitcoin pay-outs and payments. This makes it possible for owners of digital assets to locate a location where they may easily leverage their cryptocurrency holdings.
Ways the gaming industry is helping crypto grow
The following are some of the main ways in which crypto is growing thanks to the impact of the gaming industry:
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Opportunities for employment and business for crypto specialists
More people with blockchain and cryptocurrency skills are required as the gaming industry develops. The blockchain sector is expanding as a result of the growing popularity of cryptocurrency gaming and the technology that enables it. This is known as the trickle-down effect, it is causing a rise in the need for industry specialists.
Since about 2020, blockchain technology has reached a stage where businesses and even authorities are starting to see its potential. It makes people’s lives better and builds stronger organizations.
The same situation holds for public relations firms. A growing number of companies employ subject-matter specialists to assist customers and aid in boosting press and commercial attention.
Whatever the industry, smart businesses always prefer niche specialists to achieve their objectives.
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Universal usage of cryptos
In recent years, the regular banking sector has started to adopt crypto more. There is no doubt that the continued use of crypto in the multi-billion gaming industry has aided the adoption of cryptocurrencies.
Cryptos are now universally known payment methods in different online transactions and business activities.
As you know, in September 2021, El Salvador became the first nation to accept Bitcoin as legal cash. Continuing this pattern, several other countries in the world are recognizing Bitcoin as legal cash.
The likelihood that additional nations will include cryptocurrencies in their current financial systems is rising. This will enhance the adoption rates into systems and foster even more user confidence.
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Government regulations
Government regulation of crypto is still a major point of discussion in many countries. The lack of a legal framework makes it unclear what is allowed, which can stifle innovation. This may have a negative effect on the industry.
Cryptocurrency gaming, as a major global industry, is necessitating governments to come up with regulations to control and help the sector thrive. New factors are coming up including Defi and even the metaverse that will it difficult to control the sector.
Both fans and critics have called attention to technology in the global media. Therefore, establishing clear rules for what is permitted and prohibited in virtual reality would aid in legitimizing activities in the cryptocurrency business.
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Trading resources and earning rewards
Any property or asset that you own can be exchanged for money or resources, and the other way round.
It is easy to earn even your very first crypto in play-to-earn games and in bounty campaigns. In conventional games, for the same work you would be awarded game points that are only good within the game. Crypto on the other hand is useful outside of the game too, because you can freely exchange it for real-world assets.
Sometimes you don’t even have to, some e-commerce websites allow you to purchase goods and pay with crypto. In this manner, the gaming industry contributes a lot to the development of crypto.
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Increased potential for NFTs
The gaming industry is contributing massively to the nascent NFT industry. NFT gaming is expanding quickly, but more significantly, NFT players are giving their pastimes a purpose.
The potential of non-fungible tokens is enormous since they may be used to transfer rights about both physical and digital property. Therefore, established institutions like art galleries and museums are likely to treat and hold NFTs as their interest grows.
Most big businesses and celebs are embracing NFTs as the future foundation of the virtual world of business. The NFT market is attractive because it resembles the early days of the internet. Numerous emerging IT enterprises are attempting to enter the market with their distinct enthusiasm and flare.
Conclusion
The gaming industry is becoming critical to the growth of crypto around the world. Its usage in the gaming sector is essential in meeting blockchain technological needs. Additionally, it is creating more opportunities and a favorable environment for crypto to thrive even in the future.