Cryptocurrency in Mobile Games – Is it the Next Big Thing?

Cryptocurrency is a new form of digital payment, and in this article we will take a simplified, in depth overview of what cryptocurrency is and how it is playing a major part in mobile games.

Before we take a look at what cryptocurrencies are, let's first take a look at a payment system that we are familiar with the banking system.

A bank account

With the banking system, we each have a bank account. Each bank account has an account number, and a pin number.

The account number

The bank account number allows anyone to send money to the bank account associated with the account number.

The account pin number

The pin number grants access to the funds in the bank account. This pin number ensures the account holder that nobody else can spend the money that is in the bank account.

The role of the bank

The bank provides a system that allows people to send money to each other and that keeps track of who each account belongs to.

So what is cryptocurrency?

As you may recall, cryptocurrency is a new form of digital payment. It is built on top of a system called a blockchain.

A blockchain is a new type of bank. In a blockchain, transactions between people are recorded and processed by computers. This is different to the banking system that we are familiar with whereby humans are responsible for the processing of transactions.

In a blockchain, each person has a wallet. The wallet is like a bank account. However, instead of an account number and pin number, wallets have an address and a private key.

The address is like an account number for your wallet. It is the address where people have to send money if they want to send it to you. Similar to a bank account, a wallet can only have one owner.  

To access the money in the blockchain wallet, you need to have the private key. The private key is like an everyday key to your house. If you lose your house key, then you can't get into your house. The same applies to your blockchain wallet and your private key - if you lose your private key, then you can't access your wallet.

But there's more…

Apart from your private key granting you access to your blockchain wallet, it also serves another purpose.

Your private key proves ownership of the funds. This ownership is required to spend the funds in your wallet. Without the private key, you won't be able to spend your money.

Let's get back to gaming!

Now that we've taken a look at what cryptocurrency is and what a blockchain and blockchain wallet is, let's proceed to looking at how cryptocurrency is being used to reshape gaming.  

What are in-game purchases?

In-game purchases refer to items or points that a player can buy for use within a virtual world to improve a character or enhance the playing experience. These virtual goods that the player receives in-exchange for money are non-physical and are generally created by the game’s producers.

The in-game purchase revenue model is the primary revenue stream for game producers. In-game purchases serve as an incentive for game producers to constantly develop new features that enhance a game player’s experience.

Let’s take a look at some of the items that can be purchased in-game to enhance a game player’s experience. 

Some items that can be purchased in-game include:

• Maps and levels

  Purchasing maps and levels will unlock sections of the game that you once never had access to. This could either enhance the game’s storyline or open up vantage locations in strategic games.

• Appearance upgrades

  These can either be avatar skins or dances, maybe even player actions such as a specialty move or an ability such as flying or an extra high jump that you would only have access to if you purchased it.

• Weapons or tools

  You can increase your player’s weapon arsenal making you a more fierce competitor. You might even be able to purchase a tool to open resources that you wouldn’t have access to otherwise.

• Coins, points or diamonds

  Some games use virtual currencies for content purchasing. Making in-game purchases with these virtual currencies might give you access to specials or discounts that can only be redeemed with these currencies.

Now that you’ve seen what type of items can be purchased in-game, let’s take a look at why cryptocurrency is becoming appealer choice for these in-game purchases:

Instant Transactions

With cryptocurrencies, you can clear payments almost instantaneously. This is mainly because you don’t need a 3rd party or middleman, like a bank, to process the transaction. The transaction is between you and the game producers. Using cryptocurrency as a payment option for-in purchases allows for payments to be almost as quick as a cash payment would be.

Ability to play anywhere

Cryptocurrency allows for global payments and withdrawals from anywhere in the world at any time. Cryptocurrency further enhances global transactions by not having to deal with exchange controls between different parts of the world.

Safe and secure

The safety of your money is ensured when transacting with cryptocurrency in online games. The underlying blockchain technology which cryptocurrency is built on top of makes it difficult for fraudulent scammers to steal your money.

It is also very difficult to hack a cryptocurrency since it does not rely on a single entity to run, it is a communal system and relies on each member of its community to maintain is. This means that there is no central point that can be attacked by hackers.

More value for your money

When transacting with cryptocurrencies there are no banking fees charged since there is no bank. The only fees that you have to pay are network fees, which is the fee charged to transact with a cryptocurrency. However, these fees are minimalistic compared to average banking fees, yet alone banking fees when making global payments.

These reduced fees result in you getting more value for your money, as well as ensure that the game producers receive more of the payment. Another great benefit about the reduced fees is that it could result in items in games becoming cheaper since most of the payment now goes to the game producers.

Keep your identity safe

Your identity is completely safe when transacting with cryptocurrency. This is because cryptocurrency uses advanced encryption to hide your identity. You can transact in complete privacy. The only way that someone will know that you transacted is if you willingly disclose it.

To recap

As you can see, cryptocurrency offers you a quick, efficient, and low-cost solution to spend your money. This is ideal for online gaming since your identity and money is secured by cryptocurrency’s underlying technology, allowing you to send money anywhere globally almost instantaneously. Also the cryptocurrency affect the mobile payment market a lot.

What you need to get started

In order to start transacting with cryptocurrency, you will need a cryptocurrency wallet. A wallet takes all of the complexity out of using cryptocurrency. A good wallet will make it simple to send and receive cryptocurrency, as well as make it simple to deposit and withdraw your funds in the wallet. For a great wallet, visit Payperless.com.