The cryptocurrency market experienced tremendous growth in 2021, reaching a market cap of $2.7 trillion. It has continued to gain attention globally due to its secure nature in executing global transactions cheaply and at the speed of light.
While it looks like the crypto industry is growing, a recent population analysis in 2021 shows that there are about 300 million global users and over 18,000 businesses accepting crypto as payments. But based on the entire population, these users remain a minority.
Undoubtedly, blockchain and cryptocurrency proponents are still searching for that ‘killer’ use case that will drive its adoption to the masses. Many believe that finance is the solution, but the technology is complex and several regulatory bodies have bashed its adoption.
How can more people get involved in cryptocurrency? The gaming sector might be the answer. This $150 billion industry can push crypto to the masses.
The Blockchain Gaming Revolution
Blockchain technology has seen one wave of massive adoption since the launch of Bitcoin, which hit an all-time high of $62,000. Many believed Bitcoin would bring about a revolution in finance, but this hasn’t been the case.
As interest has grown in cryptocurrency, Bitcoin’s original purpose shifted from peer-to-peer transactions to a store of value, with most investors comparing it to digital gold.
In a bid to get rich quickly, the crypto industry witnessed a listing of new coins with no real-use case, and most investors fled during the dip, making it difficult for crypto to gain adoption. Hence, the potential of cryptocurrency to be that killer app that drives blockchain technology to the masses was truncated by greed.
There is still a possibility that cryptocurrency can be that blockchain killer app, considering its gradual growth and the influx of Python coders involved in algorithmic trading. But the gaming environment is evolving to bring crypto down to the masses.
Why the Gaming Industry?
The interesting question here is why the gaming industry, right? The answer is that incorporating blockchain technology in innovative games will usher a new customer base into the crypto space.
According to analysts, the gaming ecosystem will be that killer app set to offer blockchain and cryptocurrency as a real-use case, not only by creating innovative games, but also by developing inbuilt systems that will educate more people about cryptocurrency.
Stratis, a blockchain platform, recently commissioned research undertaken by insight agency Opinium. The study revealed that 58% of the 197 game developers who studied in the US and UK are beginning to incorporate blockchain technology, and 47% were already using Non-Fungible Tokens (NFTs) in their games.
Benefits of Combining Crypto and Online Gaming
Combining blockchain with online gaming comes with many perks.
- Incorporating blockchain technology in the gaming industry is revolutionary, and it will create a more-fascinating user experience.
- Gamers are open-minded to new ideas, and, with features like play-to-earn, they will be happy to be rewarded for playing games. Hence, more users will take advantage of this opportunity.
- Blockchain presents a new level of the decentralized economy for online gaming.
- Most online games require players to make micro-transactions using different payment gateways. Some of these payment gateways charge high fees, which can be reduced or eliminated by making crypto an in-game currency.
- The combination of NFTs and blockchain will create additional value for the gaming industry. In-game items can easily be accessible for monetization.
The Role of NFTs in the Gaming Industry
Non-Fungible Tokens (NFTs) are unique and non-interchangeable digital assets. Blockchain technology is necessary to enhance the uniqueness of each NFT and to ensure proof of ownership. Like any other physical property, NFTs can be sold, but they are not tradable like cryptocurrencies.
It is critical to note that NFTs make it possible to incorporate blockchain technology in the gaming sector and also grant access to in-game digital assets among various blockchain networks. A report from the NFT tracking site DappRadar revealed an increasing number of digital wallets connected to gaming applications. Game developers are keen on integrating digital tokens into the gaming ecosystem, which will benefit both the players and investors. You can check some of the examples of NFT games here.
According to Stratis, blockchain and NFTs will play a vital role in transforming the gaming industry. These technologies are beginning to improve the user experience and reward players with valuable tokens. The future of online gaming is with Blockchain and NFTs.
Moreover, many blockchain gaming platforms are simplifying blockchain and cryptocurrency for their users, bringing a wide range of possibilities in the ecosystem through a combination of NFTs, DeFi, and other technologies.
Metaverse – Play to Earn
Over the past few years, gamers have been spending their money on enjoying games, while the owners or developers make financial gains. But a new model is changing this narrative. A new breed of gamers wants a reward for their time, which has lead to the advent of the play-to-earn gaming model.
The lockdowns during the global pandemic sparked an interest in the online world, making people realize that they could still do what they love doing from any part of the world by using their mobile phones. And the metaverse has made this possible.
The metaverse is a virtual environment where different people can meet to share information. It makes it possible for people to attend virtual events, exchange goods, and do the same things they do in the real world. Users need cryptocurrency to transact in these virtual worlds, and most blockchain games have their native tokens used for transactions and in-game rewards.
Play-to-earn gaming models make use of blockchain technology. They reward every user who spends time in the gaming environment. Some traditional games offer players the opportunity to buy in-game assets, but most of these assets and the game currency have no real-world value.
The combination of blockchain technology and a play-to-earn gaming model enables gamers to sell in-game assets on the open market. With the possibility of earning a few dollars daily while playing games, the gaming industry could herald a change in the global economy, paving the way for the mass adoption of cryptocurrency.
Conclusion
With the incredible growth of the gaming industry, the blockchain industry is fast becoming a major building block for online games, as it enables players to earn while playing and trading digital goods, both within and across the games.
Gaming can serve as a primary source of income for players due to the earning opportunities accessible through the blockchain. Crypto adoption lies through the crypto games and serves as the future for crypto gamerss.
