How blockchain technology is helping iGaming business growth

In 2022 alone, the use of blockchain technology in the gaming industry grew by a whopping 2000% compared to the previous year. It’s clear that blockchain technology will play an important role in the future of the gaming industry, with over $2.5 billion already raised to invest in this new form of gaming technology. Things like dApps and metaverse are driving the use of blockchain technology and making it a more common practice as each day passes.

It has been estimated by several financial institutions that the growing metaverse will top the gaming industry, which is currently at $8 trillion. The biggest contributor to the expected growth of the metaverse can be attributed to the number of gaming apps estimated to be added to this decentralized platform. Blockchain technology in games has various advantages, such as creating a secure environment for players to enjoy games without worrying about being hacked and becoming a victim of a cyber attack. In addition, including blockchain technology in games makes transactions hassle-free and much faster.

What is blockchain and how is it used in games?

Blockchain technology is a decentralized ledger that allows secure transactions recorded on the blockchain. It can also enable players to use NFTs and cryptocurrencies to make purchases, which can then be traded for the money they spend in real life. A good example of this can be seen with Axie Infinity, which has a global player base that has reached millions. These players all use the cryptocurrency Ethereum to make transactions.

The role of cryptocurrency in games

The use of cryptocurrency in the gaming world has seen a massive increase in popularity, which has also led to the development of cryptocurrency itself. Cryptocurrency is a currency that is completely digital and extremely secure. It relies on authentication and verification to allow transactions to occur, protecting both buyer and seller. One of the main reasons why cryptocurrency has taken off in the gaming industry is because it removes the need for other payment options, which usually take much more time. These include the use of credit cards and banks, which may flag transactions and require you to contact them to authorize a payment.

Cryptocurrency eliminates this need for an intermediary to facilitate a transaction, allowing for much faster transactions that are also much safer. In-game payments can be made using cryptocurrency to purchase things like themes, power-ups, unique items, and avatars, just to name a few. Popular cryptocurrencies currently used in the gaming industry include Ethereum and Bitcoin, which enable players to use in-game tokens purchased with crypto to earn rewards and purchase items or upgrades.

NFTs

The gaming industry uses cryptocurrencies in many different ways. NFTs, or non-fungible tokens, are a form of digital asset; however, they differ from crypto in that they are unique and cannot be traded in the same way. In the game world, certain items can become NFTs and have real value that can be converted into real money. This has given players a new way to truly own the items they have in game and brings a whole new concept to gaming. These NFTs can be sold to other players or added to a collection with the hope that they will appreciate over time.

Play and earn

Since the introduction of cryptocurrency to gaming, a new genre of gaming has become increasingly popular. These are known as “Crypto-Games”, where players can actually earn cryptocurrencies by playing the game. The cryptocurrency earned from crypto games can be exchanged for real money, or it can be used to purchase other in-game items. Rewarding players with cryptocurrency for playing a game incentivizes them to continue playing as they can use the currency in real life if they choose. Games are no longer just for fun – now you can make real money doing what you love.

Virtual events and tournaments

Tournaments and virtual events have existed in the gaming industry for many years; however, the introduction of blockchain technology has the potential to change the landscape of these events forever. Blockchain technology not only creates a safe and secure transaction process, but also tracks everyone, so that winnings of certain teams and players can be easily tracked. This will make the creation and administration of online tournaments much easier to monitor and improve the overall experience for everyone involved.

This article was contributed by Maddox Theo