Written by: Kimmy Maclang
Bitcoin and other cryptocurrencies have gained popularity in the past few years. Its underlying technology, blockchain, is also being used in different applications and multiple industries.
Though still decentralized and virtually in its infancy, Bitcoin is now recognized by governments and financial institutions. This is why many people are exploring crypto trading and investments as a way to broaden their portfolios.
Among the industries benefiting from blockchain technology is the multifaceted gaming industry. Cryptocurrency in esports, including gambling, betting, and other blockchain-based games, is on the rise.
All you need is a digital wallet where you can send and receive coins. The beauty of blockchain and cryptocurrencies in digital games is that each transaction is recorded. Whether you win or lose, there will be a verifiable record of where your digital money goes in the course of the deal. This level of transparency is prized in industries where fraud is rampant.
In other online games outside of gambling or betting, monetization strategies via in-app sales, in-app ads, and affiliate marketing with crypto are ways to integrate the digital currency into the gaming matrix.
Players can purchase gear, lives, and items and customize their characters using crypto. Rewarded ads, watched video ads, completed services, and other particular tasks accomplished can earn users cryptocurrencies. For affiliate marketing, users can earn rewards like cryptocurrency for clicking links or banners and referring friends.
Select Bitcoin casinos, like the one in New Zealand, are also adopting cryptocurrency payments, where all players can trade or play with their respective digital assets. These crypto casinos have grown in popularity as of late. Find out how users are benefiting from using crypto and blockchain tech in their digital gaming.
Advantages of Cryptocurrencies in Online Gaming
Cybersecurity is a primary concern for online gamers since the risk of fraud is quite high. Traditional online games require you to input bank details and personal information when transacting, and keeping it secured should be the site and developers' top priority. Unfortunately, many people get scammed, hacked, or don't receive their due thanks to cybercriminals.
Thankfully, using cryptocurrency streamlines payments, stores a permanent, transparent record of all transactions, and is compatible with multiple gaming platforms. You can send and receive crypto instantly without divulging highly personal or financial information. There is also a high-security threshold that isn't as easy to crack as ordinary bank accounts.
Integrating cryptocurrency and blockchain technology with online gaming is a logical and practical step towards adding a layer of protection to digital gamers. It will continue to grow within the gaming space as it evolves.
Why Crypto and Blockchain are Beneficial in Online Gaming
Check out this list and see how cryptocurrency is changing the landscape for online gamers everywhere.
1. Plug and Play Anytime, Anywhere
You can access crypto accounts and blockchain-based games anytime, anywhere, as long as there is a stable internet connection. You don't have to worry about making phone calls to banking institutions, follow-ups, or other things that require you to adhere to a fixed schedule or place to process whatever needs your immediate attention.
Best of all, gamers can play internationally without worrying about security or exchange rate issues. It's a borderless gaming world with cryptocurrency.
With the right platform and gear and a secure connection, you can instantly access essential functions. You don't have to confirm your identity or email address or give away personal information. You can withdraw funds quicker wherever you may be, sans restrictions.
2. Advanced Security Measures
In-app gaming purchases should be accomplished with fortified cybersecurity. Sadly, many online gaming sites have dubious security measures. When blockchain is employed in online gaming, illegal trading of digital assets is prevented.
Keys are kept safe from hackers and cybercriminals since an immutable ledger eliminates key duplication. Additionally, you can safely try out new online casinos since blockchain technology will safeguard your money and data.
3. Quicker Transactions
Cryptocurrency and blockchain are practically synonymous with efficiency when it comes to processing data. Players can instantly exchange crypto units since they don't require inefficient processes like regular banking or financial institutions.
Independent gaming developers can also easily sell their software outside app stores since blockchain enables them to process nano-payments and immediately receive crypto compensation.
4. More Cost-Effective
Compared to bank transfers, credit cards, and other funds transfer platforms, crypto is more cost-efficient. You won't be surprised by hidden charges or wait long for your cash to appear in your account. Blockchain is secure and direct, eliminating handling or exchange fees. Without intermediaries to meddle with the transaction, peer-to-peer deals between users are made faster and more efficiently.
It's a practical model which has excellent viability for new game developers and players. Developers get to cut costs and boost their earning potential, while players get more bang from their buck since there are no hidden or additional costs.
5. Better Bankroll Management for Players
Responsible gambling is a primary consideration if you are an online gamer. Keeping your bankroll separate from your savings by playing casino games using crypto exclusively decreases your risk of siphoning funds from your personal funds to top up your bankroll.
The Main Issue with Gambling, Gaming, Crypto, and Blockchain Tech
Tracing the source of funds is perhaps the most important thing in gambling regulations, whether it's fiat or cryptocurrency you are gambling with. Regulators will ask for transaction statements to verify the information and put deals on the record.
Crypto gambling is harder to regulate since users can send deposits to their wallets and aren't audited. This means funds can come from anywhere and accumulate through any means possible.
Regulators want to prevent illegal activities, and if a gaming operator doesn't have established measures to ask for their fund source, it might be impossible to trace. Crypto-based gaming or gambling websites must undergo the same audits and regulations as fiat gambling businesses. Tighter background or identification checks are necessary to increase security for players, developers, and business owners.
Bright Future Ahead of Crypto in Online Gaming
Although a relatively new concept, many businesses and users have already trusted cryptocurrency for years. It won't be surprising to see more integrations of cryptocurrency in gaming very soon.