Crypto Gaming: The Risks & Future Of Play-To-Earn Cryptocurrency Online
In just a short while, cryptocurrency has managed to capture our imagination and fundamentally altered the way we think about and interact with money.
As cryptocurrency has become more widely accepted, game developers have begun to take notice, creating games that are built on blockchain technology.
Despite the fact that the crypto gaming industry is still in its infant stages, it has amassed a significant following. Play-to-earn has the potential to provide gamers with levels of freedom that are simply not obtainable within the traditional gaming ecosystems. Continue reading to learn more about the workings of crypto gaming and the future potentials of this emerging genre of gaming.
What is Crypto Gaming?
Crypto games are games in which cryptocurrency and Non-Fungible tokens (NFTs) are used as an essential part of the gameplay.
Invariably, rather than purchasing the game itself, players can opt to purchase in-game items such as characters, weapons, and basically anything else used in the game. All these are purchased with crypto.
Crypto gaming turns the traditional gaming model on its head by allowing anyone to own a small portion of the game’s assets. Consider the possibility of owning the in-app purchases you make in a game, as well as the ability to transfer winnings or purchases made in one game to another. All of this is made possible by cryptocurrency gaming, which provides real-world value to digital assets.
Unlike traditional gaming, play-to-earn assets do not reside on a centralized server, as opposed to traditional. Instead, you become the owner of the items you earn while playing crypto games, such as characters, boosts, weapons, and skins.
In place of losing all of your in-game assets when you stop playing, you can trade them with other players, sell them, or take them with you if you wish.
Players and developers are on the same team when it comes to blockchain gaming. Nobody has any control over the outcome of the game, and anyone can examine the code that is used in the majority of blockchain-based games.
Because of this openness, if a developer releases an update that the community does not approve of, the game can be split and different versions created for different platforms.
Are Crypto Games the Future of Modern Gaming?
Crypto gaming is becoming increasingly popular, and investors want to be a part of the movement. Sky Mavis (creators of Axie Infinity) raised $7.5 million in its first round of funding, thanks in part to the investment of Mark Cuban, who invested in the company. Venture capital firms are also getting in on the action.
As a result, blockchain companies such as Solana and Polygon have begun investing in early-stage blockchain games that incorporate decentralised finance (DeFi) into their systems, demonstrating their commitment to the space.
With more and more investors exerting their financial influence on cryptocurrency gaming platforms, the industry could see a significant increase in its market size.
However, the play-to-earn industry suffered a major setback in October 2021 when Steam, the world’s largest distributor of PC games, announced that the platform would no longer support blockchain-based games, ostensibly because it would not allow items with real-world value to be traded on its platform.
Missing out on Steam’s support could have a major effect on crypto gaming. Although, they will be deprived of access to an industry-leading marketplace that attracts over 62.6 million daily users,
Crypto Gaming and the Safety of NFT Assets.
Play-to-earn, despite its numerous advantages, is not without its potential downsides.
It is true that some games are more difficult to play than others because of access restrictions. Axie Infinity, for example, necessitates the possession of three Axies prior to participation in the game. When you consider that the cheapest Axies are around the $100 mark, your potential purchases can rise above $300 before you can begin earning.
The average player may be put off by the high level of investment required, especially since most traditional games cost less than $100.
Potential Frauds or Hacks in Crypto Gaming
Additionally, there is the possibility of losing your tokens and NFTs assets. You might experience this if you attempt sending them to a wallet that is incompatible with the NFT type, or if you become a victim of a fraud scheme.
Sky Mavis’ Ronin blockchain (the creators of ‘Axie Infinity’) suffered a massive hack in March 2022, resulting in the loss of over $600 million to unidentified hackers and the suspension of all Ronin transactions. This caused players’ funds to become inaccessible after the hack.
The hack, which was one of the largest crypto heists in history, shed light on play-to-earn games, a young industry that is largely unknown outside of crypto and gaming circles but is quickly growing in popularity.
In addition to malicious attacks, players can suffer financial losses as a result of market volatility. Crypto game tokens, like non-gaming cryptocurrencies, are subject to price fluctuations too, but some games impose a limit on how frequently you can withdraw tokens from your account. Players may not have enough time to cut their losses if a crypto gaming coin, such as AXS, dips in value.
Definitely, a player has undeniable ownership of characters, cards, and any other features these games are peddling, but only for as long as the servers remain operational and secure. When you play P2E games, you’re not just wagering on the outcome of your match; you’re also wagering on the success of the company.
Bottom Line
It is inevitable that gaming crypto will become more popular, and it has the potential to completely transform the gaming industry. The capability of the Blockchain to create a mini-economy within a game that gives players the ability to own and sell in-game assets is what makes it more valuable in the industry. As the technology behind crypto gaming advances, more players will become interested in the genre.
More exciting features and software for Blockchain in gaming are expected to emerge as the technology continues to develop and is widely adopted, along with faster and more secure transactions, decentralized operating systems for virtual spaces, and new types of digital assets.
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