What Is Cryptocurrency Gaming? The Future of Online Game Play

Crypto games are video games that run on a cryptocurrency network and include a completely or partially distributed ledger architecture, providing players verifiable ownership over the virtual products contained in the games.

Section 1: What is cryptocurrency gaming?

A cryptocurrency is a digital asset that has value only as a means of exchange or a medium of exchange. Cryptocurrencies can be divided into two types: public and private, with the former being much more popular.

Cryptocurrencies such as bitcoin, ethereum, dash, ripple and others are open-source.

Cryptocurrencies are traded on crypto exchanges where market price of the cryptocurrencies is determined. Players can convert their cryptocurrencies into fiat currency to purchase goods and services in the real world. There are also cryptocurrency-based gambling games.

How does it work?

When a user launches a game session, it first creates a new, distributed bitcoin wallet for each of them. The same wallet, which the user holds in his or her hands, can also be shared with other players of the same game. This virtual wallet can be used to buy virtual goods like weapons, powerups and power levels, among others.

Although virtual goods are common in online games, many games aren't even aware of their existence. If a user earns a weapon, for example, he or she won't be able to use it at first since a player wouldn't have enough cryptocurrency to buy it.

It's when the user hands his or her wallet over to another player who can buy that virtual weapon from the marketplace and subsequently becomes the owner of that virtual item.

Why is it important for the future of online game play?

Here are four key reasons why this is so:

Vested Interests are Not (Yet) Spared. While there is no shortage of people voicing concerns about cryptocurrency (or mining) scammers, it's not the real fraudsters or scammers we should be concerned about. Yes, the likes of Mt. Gox and Coinlab were terrible, but these scammers did not scam just the players, but also the real investors in these games, as well as the virtual mining companies that invested in the hardware, which led to very real problems in many cases.

The Future of Online Game Play

Cryptocurrency gaming is the inevitable future of online gaming, giving players the opportunity to experience all the benefits of being a part of the global gaming community, while playing exclusive online games in a brand new way.

The blockchain revolution of online gaming presents gaming with a profound innovation: a decentralized and a tamper-proof network. Cryptocurrency gamers will enjoy a completely new gaming experience, as it will be the first time that online gaming can be designed to fulfill the needs and demands of cryptocurrency holders.

For years, crypto gamers have been deprived of playing the most popular online games.

Who can invest in cryptocurrency games?

Cryptocurrency investment for cryptocurrency games can be made with Bitcoin (BTC), Litecoin (LTC), Dogecoin (DOGE), or other popular cryptocurrencies.

How to invest in cryptocurrency games?

The easiest way to invest in the crypto game world is to purchase Bitcoin or other popular cryptocurrencies and store the coins in a cryptocurrency exchange platform that provides high margin trading.

Gaming industry expert Jon Jenkins, described the game platforms as one of the few legitimate ways to invest in crypto and believes that crypto games could be as big as Bitcoin or Ethereum.

"Players would not only be rewarded with real money or in-game items they have earned in the games, but their tokens could also be traded for other crypto currencies or exchanged for fiat currency," Jenkins said.

Conclusion

With so many players using new technologies and digital currencies to make purchases and buy and sell digital games and in-game assets, the ability to transfer value directly from a consumer to a game developer or publisher is enhanced. Consumers and merchants are provided with more options and incentives to pay for digital goods and services.

To learn more about crypto games and their future use cases, register here for our upcoming webinar on April 2, 2018.

Disclaimer: This article was issued by Kristian Camenzuli, investment manager at Calamatta Cuschieri. For more information visit, www.cc.com.mt.