The gaming industry thrives on technological development. It began with a fascination for arcade games in the 60s. In the 70s, personal computer hobby culture took off. Then, home video game consoles started to dominate the market. Today, gaming is played not only on consoles but also on mobile phones, tablets, and streaming platforms. A major innovation driving this change is cryptocurrency in the gaming industry. It offers new possibilities for secure payments, digital ownership, and decentralization.

In 2018, the global video gaming market was worth approximately 115 billion US Dollars, yet this figure is expected to surpass $138 billion this year. The Year on Year growth of the industry has been mobilised by new and continuing technological developments that offer players more flexibility to play when and where they like and an overall enhanced gaming experience.

The gaming sector has been cautious about adopting new technologies, fearing they might be just a phase. For example, early VR headsets were expensive and hard to find. They were mostly used in business for luxury experiences and architecture. Today, nearly 1 in 5 consumers in the US use VR technology.

Along comes cryptocurrency

Unlike other gaming technologies that have saturated the market at a more cautious pace, cryptocurrency is taking the industry by storm. On the surface, cryptocurrency started to become a widely accepted form of payment for the likes of online gaming console games and casino games like megaway slots. As cyber crimes are on the rise, crypto current has offered a much safer and more anonymous way to make payment for online gaming, however we’re only just starting to tap into the true potential of cryptocurrencies for gaming.

Let’s take a look at just how popular cryptocurrencies are currently and how they are impacting the gaming market.

The popularity of cryptocurrency

Cryptocurrency is a digital currency used for payments. It works through blockchain technology. Each transaction has a unique code that makes it hard to change, hack, or cheat the system. When someone makes a cryptocurrency transaction, it is distributed and duplicated across many computers on the blockchain. Each new transaction is added to a ledger shared by all participants. This ledger forms a decentralized database called Distributed Ledger Technology.

As of mid-2020, the cryptocurrency market cap was $265.545 billion. The global blockchain market is expected to reach $23.3 billion in two years. By comparison, the global video gaming industry is projected to be worth $200 billion by 2023. This shows that although cryptocurrency is still young, it has great potential to support the growth of both industries.

Cryptocurrency enters the gaming world

While cryptocurrency is still in it’s infant stages within the gaming world, that’s not to say we’re not already seeing benefits from it. As a form of payment, cryptocurrency is already offering significant convenience and safety benefits to the online community in the following ways.

Safer Transactions

Cybercrime is a given in the world we live in. As devices become smarter and more interconnected, the risk of these networks being exploited by cyber-criminals also rises. We only have to look at the Microsoft Exchange hack that took place recently to see just how vulnerable technology can make us.

Yet with cryptocurrency, online gamers can deposit money into their account without the fear that their credit card details will be stolen. The nature of blockchain technology means that users’ credentials are safer as there are far fewer loopholes for this type of payment to be exploited. The anonymity of each player means that users don’t need to worry about credit card fraud or identity theft. *sigh of relief from the readers…

Faster Transactions

Ever hit the jackpot on that slot game you’ve been playing for the last 3 months, only to have to wait another few weeks for your identity to be confirmed and your payment to clear? Well with cryptocurrencies, that’s not the case. As a decentralised currency that isn’t regulated by any central bank, transactions can happen immediately.

The future of crypto gaming

Cryptocurrencies greatly improve the safety and integrity of players. However, these benefits are just the beginning of their potential. Although still in its early stages, developers like Enjin Coin are creating games that run entirely on cryptocurrencies. These games offer in-game currencies that let players buy and trade items.

Kryptokitties is one of the most popular games to be benefiting from this technology so far. Players are able to create a kitten, breed and sell it, and guess what? The kitten is worth real crypto money. The most expensive kryptokitty so far has sold for a staggering $117,000 dollars.

Cryptocurrencies and online casinos

While we may have only just discovered the tip of the iceberg in terms of the potential of cryptocurrency, it’s clear that the gaming industry is already benefiting significantly. Gaming developers keep pushing what technology can do. Exciting changes are coming soon. Some games already let players trade items with real market value. The online casino sector also has huge potential and will likely transform the entire experience.