By Sathvik Vishwanath
The gaming industry has evolved over the past few decades from pixelated screens to lifelike scenarios being replicated on a huge scale in virtual worlds. As a result, there are 3.09 billion active gamers worldwide in 2023, and the number is set to cross 3.32 billion in 2024, according to the estimates of Exploding Topics. While there have been significant changes in the graphics, storyline, gameplay, and more, video games have moved from non-valuable virtual coins to new-age cryptocurrency.
Cryptocurrency has already revolutionised the way we look at money today, and amalgamating it with gaming opens up a range of possibilities. These possibilities have the potential to change how gamers interact with in-game assets, how developers create games, and how games are monetized. Collectively, the in game virtual economies, backed by cryptocurrency, are anticipated to change the landscape of the gaming industry.
Facilitates cross-game compatibility
Cryptocurrency in gaming can enable cross-game compatibility or interoperability, in which players can seamlessly transfer and utilise game assets across various games and platforms. What this can enable are collaborations between different games, where characters and game assets can be used in any other game. This allows gamers to leverage their procured assets to basically enhance their gaming experiences while they foster a connection in the virtual worlds. It further breaks the boundaries that exist between the economies of different games. By facilitating in-game cryptocurrency, the game developers can ensure the game reaches a large number of gamers and can be enjoyed by players with different preferences.
Provides earning opportunities
The games that allow in-game purchases with cryptocurrency can enable players to own and control virtual assets, which makes the game experience immersive and equitable. Prior to now, this shift in ownership could transform the way players interact with in-game economies. It not only provides gamers with a way to monetize their assets but also a chance to generate profits from the sales of these items. Moreover, the in-game rewards can be potential pay checks for crypto-gamers who can earn them by completing quests or other side missions. It basically transforms the pay-to-play model into a play-to-earn (P2E) model, which can change the face of the gaming industry. The rewards can either be NFT, tokens, or coins, depending on what the player community demands under the decentralised system. Data gathered by CoinMarketCap indicates that the market for gaming tokens worldwide is already worth more than INR 1 trillion.
Supports safety and security
Blockchain technology when combined with cryptocurrency games can provide a decentralised gaming experience that is more secure, transparent, and resistant to any third-party censorship. It further facilitates players residing in any part of the world to participate in games securely without being immune to any centralised intervention. Moreover, until and unless a user shares their information in these games, the purchases in the games are discrete. Games built on secured and decentralised infrastructure provide transaction security while making online purchases or selling an asset, eliminating any intermediaries. Thus, cryptocurrencies in games are not only secured but also hold more value as the transaction is peer-to-peer and the games have no handling or exchange fees.
All things consideredย
The gaming industry is incorporating cryptocurrency more and more, which will lead to new opportunities. Gamers are further drawn in by its capacity to promote cross-game compatibility, revenue potential, and security advantages. Gamers now have access to lower costs when buying products in the game world as well as potential opportunities to earn money through playing crypto-based games by using cryptocurrencies instead of conventional payment methods.
Collectively, what matters is giving consumers more control over their experiences and fostering greater levels of trust between game designers and players, both of which can help raise the overall quality, profitability, and market size of the industry. According to a study by IMARC Group, the global gaming market stood at US$ 202.7 billion and is further anticipated to reach US$ 343.6 billion, growing at a CAGR of 9.08%.
The author is co-founder and CEO, Unocoin
