How Is Cryptocurrency Disrupting the Gaming Industry?

How Is Cryptocurrency Disrupting the Gaming Industry?
| July 7, 2022

Most gamers are aware of emerging technologies, such as Augmented and Virtual Reality, gaming wearables, and streaming services. These are trending technologies that will most certainly reshape the whole gaming scene. Aside from these, blockchain technology is yet another sector that has the potential to transform the industry and has already brought some positive changes.

Speaking of the growing gaming industry, things have changed a lot since those popular retro games were played on consoles. Back in the day, the gaming industry was all about having fun. In contrast, today, we have different play-to-earn models which make professional gamers strive to be better while competing at major events and tournaments.

While nobody can deny the importance of AR and VR for the whole gaming industry, cryptocurrencies are equally important. Experts agree that this new technology will eventually revolutionize the gaming sector, and we further examine how and when this will happen.

In Which Ways Cryptocurrencies Will Disrupt the Whole Gaming Scene?

Even if you are unfamiliar with cryptocurrencies, you probably know a lot about Bitcoin. The ultimate leader in the crypto world came to existence not so long ago, in 2009. Over several years, Bitcoin popularized the whole decentralized financial system concept and led to the creation of thousands of different virtual currencies.

These may not be as popular as Bitcoin, but they do their job. They promote new financial systems which are not dependent on governments and banking institutions. Aside from influencing the global gaming industry, the rise of virtual currency empowered the online casino industry as well.

Today, many iGaming platforms accept cryptos. If you are interested in learning more, you can check a detailed Roobet review from this source; and Roobet is one of the most popular crypto casinos in the Philippines.

According to most experts, the gaming market will eventually become the first actual use case for cryptocurrencies and blockchain technology. As of today, over 3.2 billion individuals across the globe of all ages play video games, as detailed in this report by Statista.

One of the most profitable industries in the world was valued at over $173 billion at the end of 2020, and it is expected to grow at a staggering annual rate of around 9.5% in the next four years. While there are different emerging trends that are reshaping the industry, cryptocurrencies and blockchain remain at the forefront.

More Personalized and Immersive Gaming Experience 

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The competitive gaming industry is getting fiercer daily, thanks to the evolving technology environment. Changing gaming habits and regulations also contribute to the growth of the global gaming industry.

While the whole sector has been influenced by Artificial Intelligence, Augmented and Virtual Reality technology, there is a need for more revolutionary technology that could finally address the need for transforming the sector from an entertainment activity to an economic endeavour. This is where cryptocurrencies have the potential to reshape the industry.

One way in which cryptocurrencies are disrupting the industry is by providing players with a more personalized, more immersive gaming experience. This was already done by incorporating AI, AR, and VR technologies, but more can be done with the help of blockchain.

Most gamers know that companies producing video games and other gaming products store most of their valuable assets on well-protected servers to avoid potential asset duplication. Essentially, they do not have complete control over their virtual assets, preventing them from selling, buying, or trading any gaming assets outside the gaming scene.

At the same time, cryptocurrencies and blockchain can quickly bring the control and ownership of these valuable assets not in gaming companies’ hands but in players’ hands. This is done by creating a fully decentralized gaming ecosystem in which players can quickly sell, buy, or trade their virtual gaming assets with other gamers.

This creates a more personalized and immersive gaming experience that traditional gaming technologies cannot support. Exchanging virtual gaming assets with other players enjoying other games is also something that cryptocurrencies and blockchain technologies allow, unlike traditional gaming setups.

Significantly Enhanced Security

Another way in which cryptocurrencies and blockchain technologies are disrupting the whole gaming scene is by enhancing security on all different fronts. As more and more gaming companies embrace the power of virtual money, illegal trading of gaming assets will be easier to combat. Blockchain technology in the gaming world will also prevent significant issues related to stealing and hacking.

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This is possible due to the nature of blockchain or crypto ledgers. Unlike standard payment options, blockchain ledgers with top-notch encryption technology are virtually impenetrable. We are not saying that standard e-wallets can be hacked into easily, but the technology powering crypto ledgers is more secure.

In addition, the nature of cryptocurrencies and blockchain makes it almost impossible to duplicate or steal virtual gaming assets. Essentially, cryptos can ensure the greater safety of all virtual gaming assets since proving ownership is no longer an issue.

More Efficient Fraud Prevention Mechanisms 

The global iGaming industry has been thriving for some time, but it is not immune to various fraudulent activities. It has been revealed that one in every seven virtual gaming assets must be surrendered due to fraudulent activities.

While this is not the biggest problem the global gaming industry is facing, incorporating blockchain technologies will bring more efficient fraud prevention mechanisms and save companies millions of dollars.

Faster Payment Processing 

Embracing cryptocurrencies and blockchain technologies in the global video gaming ecosystem also ensures safer and faster payment processing options, with particular crypto companies aiming to revolutionize the gaming world.

Today, gamers use many different traditional payment options when they want to make in-game purchases. While most conventional payment options are risk-free, the whole payment processing mechanism can be slowed down by different factors.

This is not the case when using cryptocurrencies, as crypto payments are usually processed instantaneously. In addition, blockchain technology can also make the job of game developers easier. As we know, many game developers sell their products online on different sites. When selling their products this way, they pay high commission fees to various intermediaries.

At the same time, there is no need for any intermediary when dealing with crypto transactions, and this is what makes the whole crypto payment service not only faster and safer but also more profitable. Game developers selling their products online and accepting crypto payments can save time as they do not pay high commission fees.

With extra money in their pockets, they can invest more in their game development process, marketing, or something else. The bottom line, embracing cryptocurrencies in the gaming ecosystem benefits everyone, including game developers, gaming companies, and players.

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