Recently, the online gaming industry has experienced a meteoric rise. It is predicted that there will be 3 billion active players worldwide in 2023 and hundreds of billions of dollars in annual revenue. The industry has become significant. Some countries have even labeled video games an addiction, and governments are starting to take steps to limit teenagers’ access to games.
While many factors drive this growth, one significant contributor is the rise of blockchain technology, cryptocurrency, and the play-to-earn gaming model. Let’s look at how cryptocurrency is already transforming the gaming industry. We will also talk about how it will affect the gambling industry in the future.
Cryptocurrency’s Impact on the Online Gaming Industry
Here is the current trajectory of iGaming and the numerous ways in which cryptocurrency and blockchain technology are already transforming the landscape.
Transactions
The emergence of cryptocurrency has revolutionized the way transactions are conducted in the gaming world. With its secure and efficient transaction capabilities, cryptocurrency offers a new way for players to purchase in-game items or make quick microtransactions. And this part is significant as it generates substantial revenue for game developers.
For example, casino games such as video poker online have seen remarkable revenue from microtransactions, with an average of $10 spent in bets and daily revenues reaching as high as $1.5 million. Using blockchain technology for fast microtransactions could make gaming even more enjoyable, allowing punters to make deposits and withdrawals in their favorite currencies easily.
Play-To-Earn Concept
In addition to enabling microtransactions, another potential benefit of incorporating cryptocurrencies in online gaming is the rise of play-to-earn games. These titles allow players to earn rewards with real-world value by completing tasks, battling other players, and progressing through various game levels.
The rewards can come in the form of in-game assets, such as:
- Crypto tokens
- Virtual land
- Skins
- Weapons
- NFTs
The decentralized nature of play-to-earn games allows players to buy, transfer, and sell these assets outside of the game’s virtual world, in exchange for real money.
This provides a new way for players to monetize their gaming skills and potentially earn a living through playing games. As more games adopt this P2E model, the use of cryptocurrencies and blockchain technology could become even more prevalent in the iGaming industry.
Real-World Assets
This has something to do with play-to-earn mechanics when implementing blockchain technology in online gaming could give in-game assets real-world value. For example, purchasing gear for your character would typically only have value within the game. However, blockchain tech can create a tangible record of ownership that retains financial value outside the game.
Thus, even if the game shuts down, the ownership record stays secure, allowing users to transfer their items to other titles. This could lead to a small economy as players collect blockchain-based items over time.
3rd & 4th Game Generation
The next generation is set to be a game-changer. They will not only provide the same level of quality as regular AAA games, but they will also introduce a more sophisticated in-game economy, real ownership of assets, and the ability to make money by playing games, not just for professional cybersports players but also for regular gamers like you.
Many big developers, such as Ubisoft, Sega, and Hasbro, are already experimenting with NFTs, and we believe that this trend will continue to grow organically. As tokens become more profitable for developers, they will increasingly incorporate them into their AAA games.
Axie Infinity, a young play-to-earn title that has already generated more than $250,000,000 in sales in a single week and has surpassed the billion-dollar mark, serves as a testament to the potential profitability of this model. We can expect to hear more exciting announcements from developers this year as they seek to capitalize on this trend.
What’s Next?
Overall, 2022 was a big year for cryptocurrency and play-to-earn gaming, and the trend looks set to continue in 2023. As more people enter the metaverse and blockchain technology continues to evolve, the gaming industry is poised for further transformation.
Furthermore, as play-to-earn games create thriving economies, more people globally will depend on them as a source of income. While it’s unclear how far blockchain technology will go in the gaming industry, the possibilities seem endless as digital ownership and gaming continue to evolve.
A Final Word
Of course, the future of cryptocurrency and blockchain technology in the iGaming industry remains to be determined. However, evaluating all their advantages to this industry is already possible. And they are so evident that it is useless to ignore them.
We can only watch as the blockchain continues to improve the gaming experience. If you want to keep up with the latest developments in cryptocurrencies, read our weekly BTC and ETH review.