Crypto-currencies are now part of the booming gaming sector but you often do not hear the word "Bitcoin" in this context.
Game developers are creating their own virtual currencies, driven by new generations of gifted digital gamers. The millennial generation, or "generation X", are two economically active demographics that focus more on cryptocurrency than any other. They also like to play video games. In what follows, I discuss the different ways that game developers integrate cryptocurrencies into their products.
Tokenization of game assets
Many games now have a form of currency in play that players can win, buy and spend. These currencies are usually purchased in the game with cash or gift cards. Usually, these monetized games are offered for free and the game currencies and related item purchases are promoted in the game to encourage players to spend money.
"If we look at the best games, regardless of their category, they have one thing in common: they've activated their virtual economy (and that's how they're monetizing so far)." Ryan Wang, Partner Founder of Venture Capital of Silicon Valley Outpost Capital Company
However, the rise of games, combined with the popularity of crypto-currencies, has led to a new trend: more and more game developers "symbolize" their assets. Virtual currencies in the game can be segmented by basing them on a blockchain network and assigning them a value and their existence (and not just as a currency in play). Indeed, the use of blockchain technology in this way creates a cryptographic accounting system for gambling tokens, which also makes it possible to buy, sell and trade game items outside of the game.
Reward players and developers with Crypto
A startup called ClanPlay plans to reward game players like Clash Royale for their actions in the game with a new crypto-currency called "Good game. "The token is won and used in games, but unlike the usual virtual currencies, Good Game will also be traded on exchanges and kept in wallets as cryptocurrency outside the games.
Another company called Chukong Technologies based in Beijing, China, is increasingly interested in the integration of video games with blockchain and crypto-currencies. Chukong owns the Cocos2d-x open-source mobile games development platform. Cocos2d-x has more than a million developers who build games on its platform and have delivered successful titles like Angry Birds and Clash of Kings. Chukong has now launched a blockchain-based gaming company called Cocos-BCX this has raised $ 40 million in capital.
"With this new capital injection, we will advance the blockchain game industry and focus on penetrating the market faster than anyone in this space." Haozhi Chen (co-founder of Chukong), Venturebeat, September 2018.
Another example is the Galaxy Digital Investment Fund, who recently led a series of financing for another startup of the game in the Seattle-based blockchain called Mythical Games. Its founders have worked on popular games such as Call of Duty and Guitar Hero, but have now turned to the development of blockchain-based games.
"We believe that gaming – and more specifically the interaction of players with integrated economies and virtual goods – will play a key role in how the masses discover the true potential of the blockchain", m said Mike Novogratz – founder of Galaxy Digital.
Online games see a growing use of crypto
Soon, players could win virtual currencies that are actually tradable cryptographic assets, having immediate value in the real world. Monetization and the creation of new digital micro-savings within games are rewarding developers and players alike. It's also a good business idea because it encourages people to play more.
The chance to play video games and earn money at the same time is attractive.
More and more players are beginning to use digital currency in this way, the use of cryptocurrency and blockchain will also increase. People who have never owned cryptocurrency can end up with a balance of coins through their favorite game. They could then be interested in transferring this balance to a cryptocurrency wallet or one exchange to trade in Bitcoin or fiat.