The online gaming market is already strong. Revenue from the industry is expected to reach $100.9 billion in 2024, and user numbers are expected to grow to 281.3 million by 2029. Despite these figures, there is still significant room for growth.
Cryptocurrency technology is already helping to drive this growth and has the potential to contribute further to industry operators’ growth strategies. We will consider the role of cryptocurrency technology in online games, how it can promote growth, and the potential challenges involved with using the technology.
The attraction of enhanced transparency and security
Using the Internet presents risks to personal data and financial information. Online game operators that mitigate this risk for players are more likely to thrive. Cryptocurrency technology and the blockchain technology behind it help with this mitigation.
This is due to the transparent nature of the blockchain technology behind cryptocurrencies. Every transaction in the blockchain is recorded on a public ledger, so there is significantly reduced opportunity for fraud. In addition, blockchain technology is used to create self-executing smart contracts, which can ensure players playing securely and promptly.
Privacy for players
People who play online games may not want to reveal their activity to others. Using traditional fiat currencies makes this impossible. However, when using cryptocurrencies, players can remain anonymous. They do not have to reveal personal financial information. Being able to provide this privacy to players allows online games to grow their player base.
Simple and fast transactions
No one who plays online games wants to spend more than a few minutes paying to play from their account. By allowing transactions with Bitcoin, cryptocurrency games enable instant attractions. This makes them more attractive to players and helps them to flourish.
In addition, cryptocurrencies can be used globally. This is good news for game fans in areas where there is limited access to traditional services.
Unique rewards and loyalty programs
In order to optimize growth, online games offer reward systems to loyal players and VIPs. Using cryptocurrency technology allows them to offer unique rewards, such as their own tokens that players can win with their achievements while playing. Players can also benefit from loyalty programs where they can save cryptocurrency rewards to progress up levels and achieve top rewards.
Integration of blockchain technology with features
Other features that attract players to online games and help them grow are challenges and competitions. Operators can use cryptocurrency rewards as prizes for player success. They can also make non-fungible tokens (NFTs) available, which players can earn and trade with others.
Challenges to enabling growth by using cryptocurrency technology
Cryptocurrency technologies enhance the growth strategies of online games. However, there are challenges that can make using the technology problematic and that operators must be aware of. The main challenges are,
- Issues with the regulation of cryptocurrencies in many countries.
- The volatility of cryptocurrency markets that presents a risk which must be mitigated.
- A lack of understanding of cryptocurrencies that can restrict player numbers.
Online game operators have no control over the volatility of cryptocurrency markets and regulation. However, they can monitor the current position and ensure players are protected. They can also raise the profile of the use of cryptocurrencies to play online games and increase their customer base.
In summary
Cryptocurrency technology enhances the growth of an already strong online game industry. Game operators use the technology to optimize their own growth strategies by improving player security and privacy, enabling fast transactions, and creating unique rewards and features. There are challenges for operators to deal with when using the technology, but they do not prevent the usefulness of blockchain technology and cryptocurrencies in online game growth.
