Crypto games are video games that run on a cryptocurrency network and include a fully or partially distributed ledger architecture, providing players with verifiable ownership over the virtual products contained in the games.
As cryptocurrencies continue to be a global phenomenon, industries around the world are looking for more ways to incorporate this downright revolutionary technology into their core products and services. Online games, in particular, have become a breeding ground for exciting innovation in this space. Developers are inventing new methods to take advantage of cryptocurrencies to buy and trade in-game products, cosmetics, unlock characters, and much more. The convergence of the virtual and the real, our metaverse, has never looked so good.
Video games have evolved considerably in recent decades. In fact, the global gaming market, valued at $ 173.70 billion in 2020, is projected to reach $ 314.40 billion in 2026, with a CAGR of 9.64% between 2021 and 2026. Some of the Top video game companies are Sony, Tencent, Nintendo, and Microsoft, each with gaming revenues of more than $ 10 billion. Sony tops the list, with a massive revenue of around $ 25 billion. Electronic Arts (EA Games), Sega Games, Konami Holdings Corporations, and Gameloft are some of the most prominent game studios in the world.
While 2020 saw several economies shutting down as a direct consequence of the Covid-19 pandemic, the video game industry was one of the few sectors that experienced an unexpected boom. With various nations enforcing national blockades, people naturally resorted to seeking entertainment within their homes during successive rounds of restrictions.
Several major game producers claimed massive growth in sales revenue, as well as an active user base in 2020, including Activision Blizzard, Epic Games, and Electronic Arts. The increase in active users was also reflected in the increase in in-game purchases.
The Growth Of Crypto Games
With advancements in PC and mobile gaming, there has been a notable increase in the interest of the gaming industry in cryptocurrencies. Without a doubt, crypto games are now disrupting the market for traditional games by allowing players to win as they play, thereby rewarding their time and effort.
In a report published by the global asset exchange, it was stated that more than 75% of online players wanted to exchange their virtual assets for a currency that would be used on multiple platforms. Crypto games have gained popularity in large part due to their ability to allow players to collect and exchange virtual assets that can be traded and traded anywhere in the world. It has also proven to be a safe and simple way for the gaming industry to make money.
How Do Crypto Games Work?
It is a well known fact that one can easily buy and sell cryptocurrencies through digital wallets using cryptocurrency exchanges. So how does crypto work in the world of online gaming? That's how.
Affiliate marketing, in-app purchases, and in-app advertising are typical monetization tactics in traditional online games. Also, today's gamers are quite familiar with in-game currencies, such as the currencies you have when you play Monopoly or mobile games like CandyCrush. But for so long, these coins have been worthless beyond the scope of the game, that's terrible.
This is where crypto games excel as it allows users to add value to their purchases. Store tokens, like game products, are often stored in a distributed ledger on top of a crypto network in crypto games. This distributed ledger, known as the blockchain, is what allows in-game products to be exchanged for cryptocurrencies, which can later be transferred for real money.
In-app purchases allow players to purchase items such as coins, extra lives, custom characters, outfits, accessories, etc., directly from the game. When applying this to cryptocurrency games, in-app purchases are made when players purchase items using cryptocurrency or by purchasing the crypto itself. In contrast, in traditional games, assets are usually purchased from a developer-owned central store, making the developers rich and not playing them.
Make Money With Crypto Games
In essence, crypto games are video games that run on a cryptocurrency network and include a fully or partially distributed ledger architecture, giving players verifiable ownership over the virtual products contained in the games. As a result, players can exchange virtual goods for cryptocurrencies, which can be exchanged for real money.
During all this time, it was only the game developers or game studios that made a profit from the virtual currencies that were sold to players or users because these assets only had vanity value to them. This meant that almost everything you could buy in a game (eg skin, armor, upgrades, etc.) was of limited value, despite users spending real money to buy them.
But with the emergence of crypto games, the status quo is now evolving. While regular games have been primarily focused on entertainment, crypto games provide entertainment with the added bonus of winning real money while playing. Every time a player purchases an asset, the value of the game's economy indirectly increases. Axie Infinity, CropBytes, and Gods Unchained are some of the most popular crypto games that allow players to earn money using virtual products to achieve the goals of the game.
A typical example is CropBytes, a homegrown crypto game. With this farm simulation game, players can grow their asset portfolios using NFT and crypto on their own farms. A favorite of over 80,000 CropBytes users, this crypto game gives users the ability to harness the power of cryptocurrencies to make money playing games.
NFT Games
With crypto games increasing in popularity, so has the NFT gaming sector. In the first quarter of 2021, crypto games underwent an upgrade in the form of NFT games, which went from Play to Earn games to collectible games based on the Pay to Earn principle. Trends have always driven the gaming industry, and the latest trend in NFT is no exception. While it is no secret that the NFT market has grown into a billion dollar market, gaming is undoubtedly one of the most suitable use cases for NFT. Much of the NFT industry is now focused on gaming, which has enormous potential to provide players with unique in-game item collection options.
Although the terms crypto games and NFT games are often used interchangeably, there is a significant difference between the two. While crypto games focus on using crypto currencies to transact with other players, native tokens are used to generate or collect NFT in NFT games . Through NFT games, any asset in the game such as utility, armor, LOL, terrain or any asset, can be converted to NFT and can be easily owned, transferred and sold on the blockchain. The NFT gaming platform also gives gamers access to the NFT markets to buy and sell unique NFTs. Axie Infinity is a popular NFT-based online video game that is currently the most expensive NFT collection, with over $ 42 million in sales as of June 2021.
Furthermore, a new type of blockchain game combining decentralized finance (DeFi) functions with games is also gaining traction, this is also known as GameFi. MOBOX, a BSC-based game, is one of those games that combines NFT collectibles with performance crops and other DeFi services. We should see a lot of support products around GameFi (Game Finance) that bring new dimensions to crypto games. For example, players can guarantee their gaming assets to borrow or simply borrow an asset for gaming activity to generate more assets. There are many creative ways to earn money.
Although most games are currently designed around NFT in the crypto space, FTs are also gaining popularity. Unlike non-fungible tokens, fungible tokens can be replicated and exchanged with the same value with each other.
Liquidity In The Crypto Gaming Market
Since crypto games are highly dependent on the gaming market, it is also important to address liquidity levels in these markets. In its most basic form, liquidity refers to the maximum amount of assets that can be bought and sold at any one time within the gaming market. The more liquidity, the healthier the market is; therefore, liquidity is a good indicator of any market.
To increase liquidity, the cryptocurrency gaming market can comprise both NFT and FT assets. While FT assets can be scaled to have highly liquid markets and therefore used for utility / consumable assets in the game, NFT assets can be used more for their rarity, which generally has high value transactions. but low volume.
Looking Forward
I have been passionate about games, starting from a young age creating counter strike maps. I have always been a gamer, with a passion for working in the video game field. With the crypto gaming sector now growing to unprecedented heights, I am definitely captivated by the opportunities this presents and very excited to work with new projects and gaming startups.
As more money is now being invested in the market, there is no doubt that crypto games are ready to become an industry of their own. Several studios are also jumping on the crypto gaming bandwagon, in an attempt to capitalize on the latest trend.
That said, it is practical that the growth of the online gaming industry is something that crypto games should try to exploit, as it has apparent benefits for both gamers and developers. From the potential to win to the ease of transactions, the ability to play anywhere, and improved levels of security, crypto games enhance the overall gaming experience for players while providing new revenue streams for developers.
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The buzzword in the market is undoubtedly Non-Fungible Tokens (NFTs).
Investors trade crypto collectibles valued at $2.66 billion.
Non-Fungible Tokens have some special characteristics like indivisibility, interoperability, non-interchangeability, ownership rights, and scarcity.
Who are the biggest creators of Non-Fungible Tokens (NFTs)?Artists, content creators, fashion designers, game developers, music composers, photographers, publishers, singers, social media users, and videographers are the largest creators of valuable NFTs.
They earn millions by selling their digital collectibles in numerous NFT marketplaces.
Hence, entrepreneurs can mint hefty revenue by using a high-quality NFT development service provided by a well-known app development company.What is the crucial role of an NFT Solutions provider?Undertaking Non-Fungible Token development - based on different standards like ERC-721, ERC-1155, and TRC-721.
We are a pioneer in Open finance development and develop DeFi lending and borrowing platforms, DeFi smart contracts, DeFi DApps, DeFi tokens, decentralized exchanges, DeFi wallets, DeFi synthetic assets, DeFi yield farming, and DeFi crypto payment gateways.
When it comes to crypto currency, a wallet that helps to load and use such currency is also required.
This is a software application that helps to store private as well as public keys and can interact with different Blockchain technologies which enable users to send or receive different kinds of digital currency as well as be able to monitor the balance they have.
For those who use Bitcoin or other forms of crypto-currency will need a digital wallet alongside as well.How crypto currency wallets work?Though crypto currency wallets are varied and many people use them, many are unsure of how these wallets work.
In such wallets currency is not stored or to be found to lie around.
A person can send another Bitcoins or other forms of digital currency and that is akin to signing of ownership of part of the coins from one’s wallet which is akin to an address.
The coins that are sent across or the funds that are unlocked can be spent only when the private key in one’s wallet matches the public address of the currency that has been transferred.The transactions that happen are merely records of transactions that are maintained on the Blockchains and reflect on the balance of one’s wallet for crypto currency.Different kinds of crypto currency walletsThere are different kinds of crypto currency wallets out there that have the following features:OnlineThis category of wallet usually runs on cloud and can be accessed by any computing device.
