Digital currencies have been in the news constantly in recent years. From Bitcoin to Ethereum to a new wave of central bank digital currencies, money is undergoing a revolution, and it’s impacting almost every industry.
Gaming is always one of the first sectors to embrace new technology. So, it’s no surprise that gamers are adopting cryptos and new digital assets fastest. Here’s a quick overview of how digital currencies and associated technologies are changing gaming.
Micropayments in Games
Games have traditionally made money for developers in two ways: flat sales and subscriptions. However, some of the technology surrounding blockchains and cryptocurrencies are opening up a new avenue: micro payments.
We touched base with Leo Twin from GamblersPRO.com to talk about how it’s impacting casino gaming like roulette and slot machines.
“Micro bets are becoming a big thing,” he told us. “And casinos can take a small slice of every wager rather than a flat percentage, allowing for new games to be developed that weren’t possible before. Not only that, but players can earn from other players who fail to beat their high score in things like slot tournaments.”
Micropayments are a true revolution, and they’re what Bitcoin was truly all about. Satoshi Nakamoto mentioned micropayments twice in his original post revealing Bitcoin to the world. They’ll change everything, including online gaming.
NFTs and Collectibles
One of the coolest new developments to come out of the digital currency sector is NFTs. This acronym stands for Non-Fungible Token. NFTs can be anything from artwork to songs and music, but they can also be rare collectibles within games such as weapons and armour.
Gamers know well that things like skins in CS:GO opened up their own marketplaces and often fetched hundreds of dollars or more. NFTs in blockchain games are doing the same. Players who win swords, guns, and other items in games like Crypto Fights are able to sell them to other players as they increase in value.
Some games have also combined NFTs with micropayments. For example, if you win a gold trophy NFT for finishing top of a leaderboard, you’ll collect a percentage of all revenue generated from other players until your high score is defeated. This is ushering in a new play-to-earn era alongside a revolution in digital property rights.
The digital currency revolution has made peer to peer payments possible for the first time ever. The fundamental problem Bitcoin solved is the double-spend problem, meaning it’s impossible to counterfeit a Bitcoin and spend it twice. This allows for peer transactions with no trusted third-party taking a slice of payments in the middle.
How could this change gaming? We’re already beginning to see some of the initial shifts. Players tipping each other within games, paying for services or assistance, and swapping items directly for payments into digital wallets will forever change how games are played.
This could lead to larger changes down the line. The entire way games are run could change. No central servers because games are hosted on blockchains and all transactions are peer to peer means no downtime and a provable log of every interaction.
Robert Griffith is a content and essay writer. He is collaborating with local magazines and newspapers. Robert is interested in topics such as marketing and history.