The world of online gaming is seeing one of the most spectacular transformations of recent times. A decade ago, any would-be gamer had to install additional software (that he could download from the shop websites) for every game that he wanted to play. Today, gamers have it easy: they can enter every new world they want to through their mobile phones and don’t even have to buy new hardware.

Even the most popular of cryptocurrencies, Bitcoin, has begun to disrupt legacy entertainment channels and provide brand-new, blockchain-based avenues. In this article, we show you why gamers- and crypto-enthusiasts both stand to gain from the next rapid evolution in the space that has been unfolding for the past 20 years.

The Rise of Cryptocurrency in Gaming

The Bitcoin phenomenon was adopted in the gaming industry lightning fast – long before it achieved mainstream acceptance – but then, that’s just one of the things we’ve come to expect from the gaming industry: it’s always there to point the way to the next big thing. For the game’s world, Bitcoin offered pure digital virtue: it came from nowhere, and it worked – completely decentralized – as effectively as the in-game gold we’d all been using to transact money online, but more transparently, and – best of all – securely.

One of the first gaming genres to seriously back cryptocurrencies is online casino games. Today, players around the world can play Bitcoin slots and make all of their bets and transactions on the Blockchain network. This has many benefits for the players, mainly around security, speed, and transparency.

We’ve moved on a long way from the first gaming manifestations of cryptocurrency where players were using in-game currencies such as gold or credits that they could use to buy virtual goods and services. Now, through the blockchain, in-game currencies are being made live digital currencies – an important distinction, and one that gives the players the edge over virtual assets.

Cryptocurrency’s Impact on Online Gaming

Here everyone knows that the unique cryptocurrency of Bitcoin brings many advantages, but what has the introduction of this step into online gameplay had on gambling entertainment, game monetization, and the global gaming community as a whole?

Enhanced Ownership and Control

With cryptocurrency, players can own more of their in-game assets and have more control, too.

In-game currencies are usually ‘closed systems’, which means that they belong to a specific game, managed and administered by game developers. For example, in-game cash units in the online game EverQuest cannot be used in Counter-Strike. These currencies also reside and are managed within a central server.

Unlike these closed systems, cryptocurrencies are decentralized, allowing users to store their digital cash piles in digital wallets, which belong to the user and are not bound to any specific game. This increased ownership opens up a whole set of possibilities for players, including transferring their assets between games, trading them on other exchanges outside of the game market, and even cashing them out for real-world money.

Play-to-Earn Mechanisms

Cryptocurrency has added new play-to-earn in-game mechanisms that offer more opportunities to monetize time and skills spent in digital worlds.

Blockchain-powered games and marketplaces offer cryptocurrencies through in-game activities such as accomplishments, competitions, selling digital goods, building worlds, and more – tasks usually rewarded with more time to play.

In these games and platforms, players can generate real income while using their favorite games. It’s created a really interesting new dynamic in online gaming, giving serious incentives for players to level up and spend more time in their favorite games.

Decentralized Marketplaces

Since cryptocurrencies have become a big thing in gaming, decentralized marketplaces have emerged where players can buy, sell, and trade valuables with each other, without an intermediary such as a game company or a third-party provider.

Decentralized marketplaces that are faster, cheaper, more efficient, and more technologically advanced than anything that’s existed up till now. These blockchain platforms help to create a transparent, secure, fair, and direct exchange for players. Players can even buy and sell unique items, digital collectibles, and virtual real estate, allowing the gaming economy to thrive in the virtual world.

Tokenization of In-Game Assets

Cryptocurrency enables the tokenization of in-game assets, transforming virtual items into unique digital tokens that can be bought, sold, and traded on blockchain platforms.

This creates a scarcity economy for virtual goods. Once these objects have been tokenized, players can trade them, speculating on the increase in value of their worlds.

Community Engagement and Rewards

Cryptocurrency has provided financial incentives for players to participate in communities and contribute to online games. Players can receive special digital tokens such as Durrs (Ring of Elysium), Malta (Malta Chain Arena), Cryptokeys (Cryptokitties), and MANA (Decentraland), as a reward for attending in-game events, finishing quests, or making developmental contributions to the game.

Conclusion

Cryptocurrency is transforming how online gaming is played, designed, and sketched, and also opening up fresh territories of profit, markets, and community.

Now as blockchain continues to develop and with cryptocurrency becoming a legitimate payment method, the future of gaming online is poised to be rewritten yet again. Fundamentally, how gamers play and engage with games, and each other, is a currency in flux. Eventually, players will take the gaming industry up a level while, at the same time, leveling up the characters who inhabit these virtual worlds.