Correlation between Games and Cryptocurrency

[Kyoshiro]

Credits: BitPokerStar

Gamers of all types have something of an advantage over the rest of the world when it comes to understanding and adopting cryptocurrencies. This is because video game studios and publishers have been using their own digital currencies for years which could be purchased by players using their country’s chosen form of currency. The item to be purchased by players using their country’s chosen form of currency. The purchased in-game currency could then be used to buy in-game items, also known as virtual goods. These range from character skins to upgrades which help you level up more quickly.

After this innovation came loot boxes, which is a system where players buy a virtual prize box without knowing what’s in it and hope for high-value items. Regulators have cited this as closely resembling a form of gambling and there is an ongoing debate about the legality of these boxes.

While at one time playing a game without any advantages was something of a prestige symbol, now the social status of finishing games more quickly has been boosted by in-game currency and is part of publishers’ core business model. So although players don’t have to use in-game currency, they will find there are substantial advantages to collecting them, either through tournaments, by watching ads or simply purchasing it directly.

Although blockchain won’t actually have a direct impact on gameplay if the value of one token is higher than another. Without regulation, this could result in issues where players’ wins are not based on skill, but rather an equity of the market. This would be a corruption of the game and quickly drive players away as the game would only be driven by traders instead of those who want to play it.

To avoid this, blockchain technology should be a means via which in-game currency can be tokenized and authenticated and secured. In addition, it can help to verify accounts and promote trust in large game markets.

However, as the push to include cryptocurrency in more markets increases, it’s essential that game studios not lose sight of the players, whose contributions to the community will determine its success and evolution.

References:
https://www.hackernoon.com