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How Are Cryptocurrencies Used in the Gaming Industry?

How Are Cryptocurrencies

People are always skeptical when it comes to trending innovations, and we know how these trends don’t always live up to the hype. One of the recent examples is Google Glasses that nobody seems to remember nowadays, but a decade ago it was all the rage. The same cannot be said for blockchain technology and cryptocurrencies as both are only increasing in popularity. Today lots of online gambling sites are accepting crypto, and some of the best online casino for canadians are in fact those that allow transactions in bitcoin, Ethereum, Litecoin, etc. This also means that users can claim bonuses, win money, and have casinos pay them in crypto.

Blockchain has even brought about new trends like NFT collectibles, which can have wider implementations in the entertainment industry. If you think about it a lot of multiplayer games have players trade items or digital assets. By treating those items as NFTs they can gain more value. This might also cause games to be viewed as Сanadian real money casinos, as randomly generated drops will have a higher or greater monetary value. So, even if the potential is great, there might be some legal issues down the line for developers who recklessly implement these features.

Here we will discuss the impact of cryptocurrencies and blockchain on the gaming industry. We will talk about video games, and online casino games, and how they are currently using this new tech. We will also speculate how this technology might be implemented in the future.

New and Improved Payment Method

Payment methods are one of the crucial elements of an online casino. Users simply love to have options when it comes to payment, and they go for fast and secure transfer methods. Currently, blockchain payments are both the fastest and most secure way to handle payments. Casinos that want to rank as fast withdrawal sites usually add Ethereum, Bitcoin, and even Dogecoin as the available cryptocurrencies.

This is just a surface-level implementation of the blockchain payments system, as it can be easily taken a step further, especially when it comes to gaming platforms. You can create a whole marketplace for digital content and build it around a specific coin that is exchangeable for in-game currencies. This means players can acquire your token through playing their favorite game and earn enough to buy new games. A good example of this would be the WoW token made by Blizzard. You can exchange gold you have in World of Warcraft for a token that can be then converted into a real money balance.   

Staying Anonymous while Playing Online Casino Games

Blockchain goes beyond money transfer efficiency. In fact, it is a unique way for players to play without creating an account. In other words, by using blockchain you can play games like roulette, slots, poker, or any other casino content, anonymously. Instead of using an account and user dashboard to fund the account, you are given a designated URL for your play session.

This kind of arrangement can have multiple benefits. Many players who hit the jackpot want to stay anonymous and for a good reason. If hackers know you have large sums of money in your account they might try to steal it, or do something else in order to extort it. Additionally, some players simply want to hide the fact that they gamble, so they only play on sites that allow them to do so anonymously.

Cost Efficiency

Another important aspect of blockchain is cost-efficiency. Right now this is the cheapest money transfer method, which in many cases isn’t such a big deal. Transfer fees aren’t too big for smaller deposits and withdrawals but they add up. Therefore, those who are frequent players are the ones who benefit the most from using blockchain and cryptocurrencies. However, when moving large sums of money these fees can increase, and many find this unfair. This is why blockchain is ideal for those bigger deposits and withdrawals.

Unfortunately, converting crypto to fiat can also be expensive so unless players plan on using those funds as crypto they aren’t saving too much. Luckily, crypto is becoming more accepted around and viable in the world, and as time goes this cost efficiency is becoming a more relevant factor.  

NFT Games

Ever since crypto became widely adopted, we have seen a rapid rise in games that want to be centered around the NFT concept. This is basically a new way of monetization for free-to-play games. Instead of just selling items and cosmetics, developers want to establish an eco-system for trading where they get a cut for each transaction. Think of it as a SWIFT banking network, but it is scaled down for a single virtual world. Basically, players are purchasing land or other assets from one another, and the developer gets a portion of money for each transaction.

Some of these projects seem really ambitious and hard to believe, but there are also those that look really promising. One good example is Illuvium which strongly resembles a Pokemon game, but the creatures you are capturing have completely randomized mutations.   

The whole concept is likely to become significantly more relevant once VR technology evolves further. VR is just one of the technologies that have a massive impact on the gaming world, and we have seen a great concept of how it can be implemented in “Ready Player One” movie. In other words, if we get a digital environment that we strongly care about, we will be more likely to spend real money on it. 

New Game Features

Finally,  blockchain can change how casinos work and even revolutionize their reward systems. Right now, users love to get free spin bonuses and other incentives when creating an account. However, in order to expand their user base, operators need to innovate and NFT can be a perfect innovation that drives user engagement. NFTs can change in value over time, since public interest in particular digital assets changes.

Awarding randomly generated NFTs to players who lose or win at casino games gives them something that can be far more valuable down the line. Many online casinos are looking into NFTs and trying to figure out how to leverage this technology in a profitable way.

There are also RPG casino games that entirely rely on cryptocurrencies. Players get to have their own avatar, wager their cryptos, and gamble on different games. Unfortunately, smaller studios were behind these projects so they never took off, or stayed relevant. We should also point out that those same games were made when there wasn’t as much hype for cryptos, so newer projects will likely be more promising and relevant.

Conclusion

Blockchain technology is still in development and still faces many challenges. It has massive potential, and many who are fed up with the restriction of regulated payment systems are opting to support blockchain. The governments on the other hand are trying to get more involved and increase the level of scrutiny they have over crypto payments. Luckily, blockchain is more than a simple payment network, and it’s definitely not going anywhere. It does face its fair share of challenges mainly due to massive energy consumption, but it’s nothing that is impossible to address.

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