As the gaming industry continues to transform, Sugar Gamer, Jolene Brown, tackles why it’s easier with more engaging experiences. One technology that is changing the gaming landscape is cryptocurrency, which is a use-case for blockchain. As reported by Forbes on crypto, the blockchain gaming industry has grown by over 2000% in the past year. In the first quarter of 2022, more than $2.5 billion in investments were made, a significant increase from the $4 billion made throughout 2021. This unprecedented growth was met by changing gaming standards, making it all the more important to understand these new assets.
Cryptocurrency is run on blockchain technology, transforming transactions by digitizing, decentralizing, securing, and incentivizing the validation of these processes. Maryville University’s discussion on the blockchain highlights how this technology works perfectly for the security of top cryptos, such as Bitcoin, with blockchain’s strong encryption. Given how transactions are made quickly over the blockchain, gamers would also get more opportunities to distribute and manage their in-game finances. This article will cover how crypto may impact the gaming scene.
How technology has evolved for Web3 and Gaming
As cryptocurrency expanded, a range of challenges and opportunities arose. More computers with strong graphics processing units (GPU) became a crucial part of cryptocurrency mining. Although crypto became more widely available, it was also much more difficult for gamers to upgrade their computers as the high prices limited them from getting the right equipment. However, a recent report on GPUs by CoinDesk notes that changes in popular Ethererum from “proof-of-work” mining to “proof-of-stake” blockchain have since decreased overall GPU unit demand
One of the most popular GPUs in particular, the RTX 3080 Ti, dropped its selling price by 45% over the last quarter—providing more accessibility to gamers. This opening similarly encouraged the growth of NFTs and play-to-earn games, which further fuels the gaming industry’s shift towards Web 3.0. Much like crypto itself, these spaces are open and decentralized, providing players with centered ownership of their assets that they’ll be able to sell within or outside their games. In addition to its decentralized nature, this lessens the roadblocks for anyone entering the Web 3.0 space, providing free modification and access to different resources.
Pros and cons of crypto
With cryptocurrency’s flexibility, it can benefit both existing and new players. As shared in our post “Can Blockchain take Gaming to New Levels?”, the blockchain can reduce fraud, create more unique player profiles, and allow users to make more in-game purchases. In the latter case, cryptocurrency can bypass any additional fees associated with formal banking, especially in online casinos or lotteries. It can even provide a more secure way to store in-game assets and currencies — allowing players to transact based on their investment preferences. And unlike traditional investments, crypto trades can happen around the clock, helping people generate revenue outside conventionalworking hours.
However, cryptocurrency also comes with its downsides. Its decentralized system means it’s not monitored by regulation systems that would otherwise protect your finances from fraud or loss. Furthermore, cryptocurrency is highly volatile, which makes it more difficult to manage funds. Recent news on crypto prices by Time Next Advisor notes that current cryptocurrencies have been struggling to meet their old prices, with Bitcoin falling as much as 70%. In contrast to other investment avenues, cryptocurrencies have limitations in terms of scalability. While cryptocurrency in the gaming industry remains promising, the complete transition to the Web 3.0 space won’t be any time soon. As more companies look to adopt blockchain technology, only time will tell when crypto becomes