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How Cryptocurrency is Changing the Gaming Industry

by on April 21, 2021
 

Cryptocurrencies have been the main topic in the world of the economy for quite some time now. And in recent years, blockchain technology is spreading to many other industries than just the economy. One of those industries is the $152.1 billion-worth gambling industry. 

But, how is all of this used to change the gambling industry as we know it? Let’s find out!

What is a Cryptocurrency?

Cryptocurrency is basically virtual funds that are secured by complex cryptography. Combined with blockchain technology, cryptocurrency provides a unique and extremely safe way of storing crypto funds ensuring decentralization, transparency, and immutability. 

Moreover, this virtual currency cannot be interfered with or manipulated by the government, as there is no central institution or authority issuing cryptocurrencies. Some of the most popular and most valuable cryptocurrencies are Bitcoin, Litecoin, Ethereum, Namecoin, Peercoin, EOS, and more. 

What is Blockchain Technology?

If you are wondering what blockchain is, it is the technology that enables the existence of cryptocurrency in simple terms. This new way of storing and transferring data by splitting it into many pieces is unique to blockchain crypto technology. The data becomes decentralized, spread on many locations, and cannot be changed or manipulated. In essence, this provides high-level security transactions together with the complex cryptography for data encryption.

How Does Cryptocurrency Work in Online Gaming?

Online casinos and sportsbooks were fast to adopt payments in these currencies and allow users maximum flexibility when it comes to payment. Nowadays, the most common cryptocurrencies used in the Bitcoin casinos in Canada are Bitcoin and Ethereum, while some online casinos accept payment via other virtual money as well. The market for digital currencies is much bigger than just these couple of currencies. 

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One of the main reasons why some players opt for paying via crypto is to keep the gambling records off their official bank accounts. Taking up a loan from the bank means keeping your credit record clean – and the issuing companies will check the user’s account for activities such as gambling. So, there is less chance that the players can get a loan with such transactions in their name. This is why some of the online casino players opt for paying in crypto.

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Also, if you simply want to keep your playing on the low and avoid oversharing, this is the way to go. On the other hand, some users simply want to pay with their crypto as it is one of the easiest payment methods among online casinos.

Payments without bureaucracy and inefficient intermediaries sound like something surreal. But, actually, paying with crypto will allow you to pay quickly and start playing your favorite online casino games in a blink of an eye.

Ownership of In-Game Assets

Blockchain technology can go in many directions – even in the direction of transferring the ownership of in-game assets. The game developers introduced free-to-play games with an in-game purchase years ago to generate revenue. 

And some of these developers also introduced different reward systems to motivate the players to spend more time playing the game. Unfortunately, the players do not own the virtual assets they managed to win, as most developing companies are in charge of the product. The players are only licensed to their assets. 

However, titles such as Gods Unchained by Fuel Games are changing that. Ultimately, this is a great way to work on player retention while regarding them and helping them monetize their skills. They are allowing players to be the owners of the in-game assets. They do it via a series of smart contracts with players that are immutable due to blockchain technology.

Safe and Secure Virtual Environment

Blockchain tech uses complex data encryption technologies to secure the transactions. It is impossible to hack into such data. Cybercrime is on the rise, and hackers won’t be able to hack into or destroy the decentralized blockchain network. 

So, since such data is immutable and safe, no cybercriminal can hack or delete or even modify the blockchain crypto transactions. Blockchain technology uses a ’Proof of Work’ and similar algorithms to provide the highest levels of security to the network. This is how both the game developers and players are dealing with a pretty safe virtual environment. 

Ability to Play for Money Anywhere

The use of crypto in online casinos will help the players play internationally and avoid exchange rate issues and other payment issues while having maximum security. Besides, some Bitcoin casinos or cryptocurrency casinos allow users to play without confirming their identity. Playing without any restrictions, depositing and withdrawing funds faster, and having a flawless gambling experience are just a few benefits. 

Closing Thoughts

Online gaming and casinos are industries that definitely believe in the future of blockchain technology. The cryptocurrency revolution has just started, and it will probably take some time until other industries figure out its potential. Experimenting with cryptocurrency has definitely taken gamboling to another level, and there’s still room for further innovations and growth.

 

Author’s Bio

Paul Calderon is an iGaming enthusiast and a blogger who was a former Financial Analyst. He is an avid online casino fan, and he enjoys trying out different innovations in the gaming industry. Paul uses writing to share his ideas and knowledge with the world and connect with other gaming and tech enthusiasts.

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