What are tokens used in gaming?
It’s likely that if you’re a player, you’ve heard about the growing acceptance of gaming tokens in virtual reality. Considering that gamers can now possibly make money from their games, it’s quite innovative.
This has previously been demonstrated by games like Axie Infinity, which have helped people in South East Asia make a living.
What exactly are cryptocurrency gaming tokens, then?
It functions essentially like any other cryptocurrency, with the exception that video games are the intended application for it! The coolest feature is that you can play-to-earn (P2E), which implies that you could be able to exchange the cryptocurrency you’ve accrued as game points for real money.
The cryptocurrency is an in-game currency that can be used to buy goods and services in the virtual world. “Crypto-tokens” or “crypto-coins” are common terms used to describe gaming tokens. Although they are also occasionally referred to as “in-game currency,” we believe a better term would be “tokens.”
You could purchase and sell in-game goods and services with gaming tokens.
Consider the possibility that you have developed a new Axie from your Axie pets, which you may like to sell. Selling it at the trading marketplace for AXS tokens is one way to achieve this. You run a business (kind of) where you sell Axies and these tokens may be traded for actual money.
An Overview Of The Gaming Sector
It should be clear to you by now that the gaming industry is quite profitable.
It’s more profitable than any other entertainment sector, bigger than Hollywood, and it even has its own holiday!
Virtual reality and blockchain technology, which have the potential to revolutionize the way we engage with games, are being driven by innovation in the gaming business.
What about video games? They are dispersed throughout!
There are an estimated 1 billion gamers actively participating worldwide, with billions of dollars in prizes up for grabs annually.
Because of this, they rank among the most significant customer groups in the modern world, thus it should come as no surprise that brands give them careful consideration when developing their communications plans or introducing new goods or services.
Soon after, other businesses began making their own video games, and the first home video game system was introduced in 1981. The industry took off from there and has continued to flourish, with no indications of stopping.
Gaming tokens are becoming more and more popular, and not just players are participating in the giveaways. Developers are joining the fray as well. Compared to traditional video games, they have a plethora of extra possibilities to monetize their games.
Thus, it should come as no surprise that cryptocurrency gaming tokens are anticipated to soar, particularly given that the “play-to-earn” feature is one of its primary benefits. Who among us wouldn’t want to make a job by playing video games?
What is gaming on a blockchain?
To put it briefly, blockchain gaming creates a whole new gaming experience by combining blockchain technology with non-fungible tokens. To enable players to take advantage of the advantages of owning and selling these digital assets, NFTs are first attached to in-game assets.
The ultimate goal of blockchain gaming is to completely transform the conventional model used by the gaming industry. Let’s take a historical look at the development of the gaming business.
Video game companies used to make titles like FIFA, which was available on CD for the Playstation and Xbox, and required users to pay in advance before they could play. Then, games like Call of Duty and League of Legends started to be given away for free or at a discounted price.
Presenting play-to-earn (P2E) gaming on the blockchain, which completely upends the conventional paradigm. In P2E, gamers receive bitcoin in exchange for participating in the game, and gaming businesses make money by keeping a cut of all in-game fees.
While the concept of play-to-earn got considerable traction in 2021, with prominent figures in the business showing interest in investigating this field, blockchain-based ownership was first demonstrated in 2017 with Crypto Kitties. A new era of video gaming can finally be brought about by rewarding gamers monetarily for the time they spend playing games with blockchain technology.
Applications for Gaming Tokens
Actual possession
You’re not alone if you think the gaming corporation is holding your in-game assets captive.
Do not be alarmed!
You can establish your ownership of your digital assets with gaming tokens. The reason is that you are the owner and have complete control over whether to resell or put your works on the market. It’s also very simple to transfer your assets to another game, exactly like Mario does when he moves from one level to the next!
Ability to trade
Have you ever wished you could exchange your virtual successes for actual money? You can now, though! Selling your labor-intensive goods on a broader distribution network is possible with gaming tokens; it’s similar to opening your own internet store without the trouble of keeping inventory.
The tokens, which are obtained through gameplay, can be sold on an exchange. For example, AXS can be sold on a general cryptocurrency exchange.
You can also feel secure knowing that your digital treasure is in good hands because it is fraud-proof.
Hold and make money
Not a really good player?
You may still participate in the action with gaming tokens, so don’t worry! All you have to do is add them to your wallet on a cryptocurrency site.
Financial incentives
Is playing video games considered a waste of time by most people? Yes, playing is a fun and relaxing pastime, but what if you could also earn a job doing it?
You might make your hobby a full-time job using gaming tokens. We are not discussing becoming a YouTube sensation. According to what we’re stating, you can really play to win cryptocurrency that you can exchange for money to pay your bills.
Obtaining clients
The best thing about blockchain transactions for developers is their total transparency. This implies that locating possible players and clients will be easier than before!
You can better understand their interests by looking at their on-chain transactions, which will help you develop hyper-niche campaigns that will appeal to them.
It’s similar to being a detective, but you also get the excitement of knowing that you’re making other gamers happy. You’ll have clients pounding on your door in no time thanks to the extra benefit of incentivization (hey, airdrops!).
You should be aware of gaming tokens
We’re sure you’ve been looking forward to this area, so here it is: a carefully curated selection of some of the most intriguing gaming tokens to be on the lookout for.
Firstly, there is Decentraland, an attempt to use the potential of user-generated content in the virtual land industry. Users can acquire land as an NFT and build their own distinctive creations on top of it using this open-source 3D platform. The game’s land can be purchased, sold, and rented using $MANA, the native currency of Decentraland.
Next up is the strategy and luck-based game Axie Infinity. After making an Axie character purchase, players assemble a three-person squad. They all possess a distinct set of abilities and traits. The next step involves player vs player matches where players use their abilities to get up the scoreboard. Playing the game requires having the $AXS token.
Another virtual world game that’s been gaining popularity in the media is called Sandbox. Its partnership with Snoop Dogg to develop the virtual world “Snoopverse” has drawn interest from major businesses looking to buy real estate on the platform. On the Sandbox platform, land can be bought for $SAND.
How to purchase tokens for crypto gaming
Gamers can purchase gaming tokens in a number of ways. They can be purchased through a game marketplace or on a cryptocurrency exchange. If you’re very bold, you can even purchase them from a cryptocurrency broker!
You will want an account at one of the cryptocurrency exchanges in order to begin. Now that your account has been created and validated, you may begin trading!
There are a few things to be aware of if you’re new to trading cryptocurrencies.
Some exchanges accept fiat money, but the majority only let you use bitcoin to purchase game tokens.
Moreover, there can be significant price fluctuations for these tokens.
Therefore, it’s advisable to conduct some research before investing whether you want to get the most out of your money or just grab a nice deal on some new games.
Now that you’ve completed your study, it’s time to make some purchases!
Try utilizing the exchange’s “Buy order” tool if you discovered a good deal. You can then determine the price at which your request will be executed. Your order will be executed automatically after someone else placed an order at this price or lower.
All that’s left to do is relax and wait for the game tokens to arrive after placing and executing your order. Generally speaking, this can take a few minutes to a few days.
Once you have your tokens in hand, it’s time to start enjoying your tokens.
Concluding remarks on gaming tokens
Given the growing popularity of virtual worlds, we think a much-needed split will occur sooner rather than later.
Rather than having a single, all-consuming dominant player like Meta, the community will split in two. These are the people who regard virtual asset ownership highly and the people who don’t give a damn.
In this sense, video games will enter a new era marked by blockchain technology, departing from conventional models in which consumers are not fairly compensated for their time.
Instead of making bad games that are exclusively based on the blockchain, developers must find a careful balance and incorporate blockchain technology into outstanding games.
Since they get to keep the assets, would anyone really play a game that is just plain awful? Absolutely not! It will take some balancing before blockchain gaming becomes widely used.
Finally, the story of “play to earn” is still very new.
Even while there is a lot of potential, before it can completely take off, important issues like network effects and sustainable economic models need to be resolved. To succeed in the long run, the game industry needs to concentrate on creating vibrant communities around these P2E models.
What use does it make to own assets in a game that no one else is playing, after all?
