Cryptocurrencies have had a major impact on the global gaming industry over the past years. The digital technology has become a gateway to owning digital assets, play-to-earn riches and decentralised economies. However, while crypto has generated a massive worldwide buzz, there is still work to do before it truly crosses into the mainstream.
Turning In-Game Gold to Real-World Value
Many gamers are familiar with digital currencies. However, they could never previously convert these currencies into legal tender because they never owned them. Web3 games have changed the narrative. With blockchain technology and cryptocurrencies, gamers have true ownership.
Gamers earn from undertaking exciting quests, winning and trading digital assets. These rewards have real financial value. Crypto gaming runs on smart contracts and immutable ledgers. Even though the actual gameplay usually happens on centralised servers, game currencies and non-fungible tokens (NFTs) created from the likeness of characters live on the blockchain.
For example, gamers earn ALICE tokens from playing the blockchain title My Neighbour Alice. They can be used in the game or cashed out. Axie Infinity allows players to breed characters, battle and trade NFTs, thanks to Ethereum.
Crypto also introduced the intriguing concept of tokenised economies, where players can use their tokens to buy into the virtual economy, meaning they become investors, stakeholders and co-creators.
Web3 gaming has become an ecosystem that blurs the line between hobby and hustle. Some players use these games as their primary income stream, earning crypto by competing against others.
Risks and Regulation
It is worth noting that where there is money, there’s risk. While crypto gaming is fun and profitable, it can also be quite technical and volatile.
Players need a crypto wallet which must be pre-funded with tokens specifically for a game. Mistakes such as sending the incorrect token to the wrong chain are irreversible.
More worryingly, this space has already had its frustrating share of rug pulls and security breaches, which have led to players losing their hard-earned tokens.
The associated iGaming industry has been keenly watching developments in the crypto sector. Some operators allow players to fund their betting activities with crypto.
However, highly-regulated gambling markets such as Australia remain wary about crypto due its volatility and the lack of regulation in the industry.
Many Australian betting platforms prefer reliable payment options such PayID rather than riskier alternatives. Aussie bettors love using PayID betting sites because they know the payment method is trustworthy.
Many people believe crypto is the future, but it might not be the most practical choice for an industry that requires total regulatory compliance, where every move faces public scrutiny.
Stability, Scalability and a Quiet Power Move
Before crypto gaming can fulfil its considerable potential, stakeholders must create a better infrastructure for the technology to foster trust in digital assets.
Online gamers want fast deposits and withdrawals. Developers want to deliver scalability and security without dealing with complex backend problems. This is where a network such as Hedera comes in.
Hedera has a DAG-based consensus model that is quite different from traditional blockchains. The Hedera Token Service and Consensus Service break down NFT and crypto token creation in granular detail and have been praised for being reliable.
The project has caught the attention of some major companies including Ubisoft and Google. These types of endorsements are a sign of potential.
If we have learnt anything from the crypto ecosystem over the past few years, it is that they are quick to multiply. They will work to refine and improve their services to remove friction, secure the backend and keep players protected in their search for profit.
