What is Crypto Gaming and How Does it Work?
Since the advent of blockchain technology, various sectors have enthusiastically adopted its capabilities, and the gaming industry is no exception. Notably, a novel trend called crypto gaming has emerged, sweeping through the gaming landscape with its transformative potential. Crypto games are games that incorporate blockchain technology and include different crypto assets.
In this article, we will delve into the world of crypto gaming to understand how it works and whether we should join the bandwagon.
How do crypto games work?
Crypto games use blockchain technology, which is a decentralized ledger system, crypto gaming promotes transparency and security. First things first, you will need to identify the game you want to play. The crypto game you choose will determine what crypto wallet you should get. Each game is built on a blockchain.
For instance, if you’re acquainted with Axie Infinity, a widely recognized crypto game, you’re likely aware that it operates on the Ethereum blockchain. Similar to engaging in crypto trading, participating in these games requires a crypto wallet. After acquiring a wallet, you can proceed to register on the game’s platform and initiate your gameplay.
Types of crypto gaming
Numerous varieties of crypto games are accessible, each showcasing distinctive attributes and advantages.
Play-to-Earn games
Most crypto games use the Play to Earn model, where players earn assets as they play or complete different tasks in the game. Play to Earn games are some of the most secure crypto games and offer the same level of transparency you would find in cryptocurrency. Some games such as Decentralland go a step further and offer players the opportunity to create and monetize their virtual worlds.
Collectible games
Collectible games are designed to provide a secure space for gamers to trade their in-game digital assets. In crypto games, these assets are usually Non-fungible tokens or NFTs, which are unique items that cannot be replaced by another item. NFTs work like trading cards. In crypto gaming, NFTs can be skins, weapons, pets, or tools.
Crypto-based casino games
Gradually, crypto gambling is gaining popularity as a favored form of wagering. Within these games, crypto assets take center stage as the main medium of betting. Players can leverage their crypto holdings for betting purposes or gain additional crypto assets as rewards for winning in games such as slots, poker, or dice.
Pros of crypto games
There are several benefits of playing crypto games.
Players can earn assets
Every video game offers in-game currency to its players and blockchain games are similar. Blockchain game developers also earn money through the selling of NFTs or their native cryptocurrency.
Players can then earn these NFTs when they level up in the game or by winning them when certain quests are complete. Another way players can earn these assets is when they gamble. The best crypto betting sites usually have amazing games that reward players in cryptocurrency.
Increased security
Since crypto games use blockchain technology, they are some of the most secure games one can enjoy. This means that gamers can play and trade their assets in a secure and transparent environment.
Players can sell their assets
In crypto gaming, players earn crypto tokens when they complete different quests in the game. Contrary to many traditional games that impose penalties for selling in-game currency, crypto games offer players greater flexibility, allowing them to freely sell or trade their in-game earnings.
However, similar to conventional financial investments like stocks, the value of these assets experiences fluctuations. But, by holding onto your assets, there’s potential to trade them for higher value in the future.
Nonetheless, the value of these assets is subject to fluctuations, akin to the volatility seen in stock values. Opting to retain your assets might offer the opportunity to trade them for a higher sum in the future potentially.
Potential risks in crypto gaming
There are different risks that arise when dealing with crypto games.
Risk of scams
Crypto games can pose a threat to players, especially when they do not keep themselves safe. Just like with video games, phishing can occur in crypto gaming making players send tokens or NFTs to the wrong wallet. It is therefore important to not only ensure you download games from official game websites but to also avoid clicking on random links sent via emails or chat groups.
They can be expensive
While there are hundreds of free-to-play crypto games, most of the great ones are not free and the NFTs needed to play the game can be quite pricey.
No regulations
While cryptocurrency operates in a decentralized manner, certain countries have implemented varying degrees of regulation. Interestingly, crypto games exist in a regulatory gray area, escaping the bounds of oversight where game developers are not bound by anti-money laundering regulations. This environment can create opportunities for fraudulent activities, particularly if one isn’t watchful.
Cryptocurrency is volatile
In contrast to traditional fiat currency, cryptocurrencies are quite volatile because they are susceptible to price manipulation and erratic fluctuations. For example, if a game or a non-fungible token (NFT) within the game experiences a decline in popularity, it can trigger a ripple effect causing the value of all associated assets to diminish.
Finally
Some crypto games are web-based, while others require you to download the game in order to play. Whichever game you choose, crypto gaming is bound to take your gaming experience a notch higher.
