Ways Cryptocurrency Affects Video Games

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 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.

This model ultimately becomes more profitable than selling a game at $60 with only one or two expansion packs. Even though games are free and players feel that they aren’t spending as much on a mobile game, if they spend only $10 per month, over the course of a year they will have spent more than the cost of many console and PC-based games.

All of this is directly connected to blockchain technology and cryptocurrency as a number of cryptocurrency companies and developers feel there is a need for further expansion of virtual currency into gaming spaces.

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.

BLMP ©2018, Singapore

BLMP (Blockchain Licensing Marketplace) is a blockchain technology company working to remove obstacles and facilitate trust in the complex issues surrounding supply chain management transactions in the virtual goods industry.

BLMP Network uses blockchain technology to connect digital platforms around the world with global brands to monetize officially licensed virtual goods across any digital platform; from games to streaming services & social media, allowing millions of users access to a whole new world of branded virtual products.

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Ways Cryptocurrency Affects Video Games was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.