What Does Cryptocurrency Have To Do With Gaming? 0 1796

5The video game industry is ever-expanding in the modern world, with more and more people adopting the hobby. With a whopping 1.3 billion gamers worldwide, it’s a perfect industry to be improved via the use of blockchain. Let’s take a look at how.

In-game cosmetics

In the last two decades, gaming underwent an interesting transformation, one that involved the wide appeal of in-game cosmetics. These are basically items/costumes players can acquire – often via purchases with real money. Digital marketplaces have sprung up on popular gaming platforms like Steam, where players can trade these items with others. Even though these items aren’t physical, or confer any real bonuses, they are highly sought after. Some are worth $61,000 – this is completely insane.

Like any trading system, it can be improved with blockchain. Currently users rely on third parties to manage the transaction, which opens up an opportunity for fraudulent activity. With a blockchain system, users could verify transactions in exchange for a digital coin. These coins could then be used for discounts on skin trades, giving them real value.

Blockchain helping game makers

A big problem with starting a game company, much like any mainstream business, is getting people to actually try your product. Many game developers get stuck with a finished product, but no additional funds to advertise their games effectively.

So how can blockchain technology help?

A reward system could be put in place for game developers to implement. A player could receive a digital token for trying the game, progressing to a certain stage or even leaving a review or rating for it. This token could then be used for game discounts or even be traded for real value. This system would help get the game’s name out and incentivise players to help out.

A game running on the blockchain

Taking it one step further is a game called CryptoKitties. This aptly named game is based around the breeding and trading of in game cats. Each cat in the game is unique and is the child of two other cats. The cats can’t be destroyed and exist forever, but new ones are bred ever second. Cats can be bought and sold for Ethereum and all the transactions are made on a blockchain. More interestingly, each cat is basically its own cryptocurrency, with a unique value on the blockchain.

Recently the game received $12,000,000 from investors led by venture capital firm Andreessen Horowitz and Union Square Ventures. This just shows how much potential the game has. If nothing else it presents an example to future game developers of how the blockchain can be utilized.

For more blockchain and cryptocurrency related news, check out Crypto101

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