Cryptocurrencies are now taking the financial-technology world by storm. However, many don’t realize it but the digital currency is also very useful in the video gaming industry. Some might not even know what cryptocurrencies are despite the fact that it’s already making waves on the financial scene.
For those who don’t know yet, a cryptocurrency is a digital form of currency or cash that’s designed to work as a means of exchange through the process of cryptography. It’s seen as a more secure form of payment and transaction as compared to dealing with cold, hard cash. There are plenty of cryptocurrencies already existing in today’s world, some of them being Bitcoin, Ether, and Dogecoin.
Why is Cryptocurrency so Popular?
Before we head to cryptocurrencies in video games, let’s talk about its popularity first. Note that cryptocurrencies are found under a decentralized system, which means there are no banks, financial organizations, or any central entity controlling each and every cryptocurrency on the market. The value and transactions of these digital currencies depend on the network of individuals that use and mine it.
How Does Cryptocurrency Work?
Since Bitcoin is the most popular cryptocurrency out there, we’ll base the following statements off of that. Now, Bitcoin works with a blockchain system. A blockchain is a linear succession of blocks (hence the name), and it’s publicly available to anyone who uses the network. Each “block” of information will contain a bit of summary of the previous one. These pieces of information will include a list of the previous transactions found on the network, as well as an answer to a math problem. To create a block, the miners, which are the individuals using the network, will do a bit of work. Their computers will mine to calculate the answer to a particular math problem. Once a person gets to find the answer to the math problem, the black is created which would then get added to the blockchain. That person who solved the problem will get a Bitcoin in exchange for his or her efforts.
What Does Cryptocurrency Have to do With Video Games?
With the rise and ascension of cryptocurrencies, many game developers now use digital cash for gamers to transact and buy items from within the game. Furthermore, cryptocurrencies in games will let gamers have the possibility to sell the digital money to other players. Also, since specific cryptocurrencies are handled by a specific network, which is most probably the developers of the game, then there’s a very minimal chance of fraud, illegal transactions, and identity theft to take place.
You might even say that the future of video game transactions might be in the hands of cryptocurrencies. In fact, there are now many games that use cryptocurrencies. If you want to check those out, feel free to visit cryptogame.