There’s a new phenomenon that’s gaining popularity with gamers. However, it’s still not easy to understand exactly what someone means when they refer to crypto games. It’s a broad term that can include a few different formats. For example, you might see it listed as a category on an online gambling site, such as Casumo online casino.
On the other hand, crypto gaming might mean any type of game that uses an element of blockchain technology in its design. If none of these terms make sense to you or you want to find out more about these concepts, read on for a deep dive into what crypto games are and how they work.
Cryptocurrencies
Most crypto games involve a form of cryptocurrency. These alternative currencies are digital and use encryption algorithms and a digital accounting system. There are several examples that have become popular, including Bitcoin, Ethereum, Litecoin and Dogecoin.
These cryptocurrencies can be used for all sorts of online payments wherever they’re accepted. They’re also used for trading. Many online casinos have started accepting Bitcoin deposits and withdrawals. It’s a convenient, fast and international payment option that’s secure, which makes it popular with players.
Although casinos accept cryptocurrency deposits, that doesn’t necessarily mean that they’re crypto casinos with crypto games. Many convert the value of the Bitcoin to a standard currency such as dollars or euros, so games are actually played in standard denominations.
Online Casino Crypto Games
Crypto gambling is now possible with dedicated categories of games and even tournaments that are played entirely using Bitcoin, Litecoin or another cryptocurrency. These titles might be exclusive to crypto users, which means there are developers creating exciting content just for that community.
These casinos might still have centralized control and traditional gaming formats but accept crypto deposits. There are also some operators who are mixing the two approaches with some games that use blockchain technology. They’re usually known as provably fair games and often have an arcade-style or a format that’s different from traditional casino games. We’ll explore the concept more in the blockchain section below.
Gaming To Earn Crypto
Crypto games is a term that’s increasingly used to describe games where participants can play to earn P2E or play-to-earn games have rewards that are digital tokens or cryptocurrency coins. Players earn them by playing for a certain amount of time or completing specific activities. In this way, players can profit from their skill and effort.
Many games already had their own economies or in-game currencies. Crypto games use blockchain to put digital currency in the game. Once earned, it can be banked or used to make in-game purchases. As they’re currencies, the value can increase or depreciate depending on when they were bought and how many players enter the game.
Sandbox and ApeCoin are two examples of tokens or digital worlds where the currencies can be earned or facilitate progress in the available games.
Blockchain Technology
Crypto games are made possible by blockchain technology. It facilitates cryptocurrencies but is much bigger than that. Essentially, it’s a digital ledger that’s decentralized. It records transactions across a peer-to-peer network.
Besides being used for the exchange of funds, it can record votes, be used for smart contracts between two parties and track assets. The ledger exists in several digital locations on separate servers, which means tampering with it is almost impossible.
Anyone who wanted to make a change to the ledger would be recording their changes, as the other ledger locations would show a discrepancy. For this reason, it’s incredibly secure and can be used to put control in the hands of several users, not just one entity.
decentralized Games
Blockchain technology is being used as part of a movement towards a decentralized web. dApps and decentralized games are part of that. They include the provably fair games that you see at online casinos.
Centralized games don’t allow the transfer of goods or points or skins or characters outside of that title. It’s owned by one company. decentralized games are spread out over multiple servers, and the game assets are owned by the players, who have equal control. Rewards and assets can be used across games on a crypto platform.
NFT-Based Games
Instead of cryptocurrencies, some games use another asset that’s made possible by blockchain technology. Non-fungible tokens (NFTs) are cryptographic tokens that can be a piece of music, digital artwork or any other collection of data. Their value is based on the fact that they can’t be replicated. Plus, stealing them isn’t theoretically possible due to the transactions and ownership recorded on the blockchain ledger.
Many games use NFTs as player rewards. The games are decentralized, so the player actually owns the NFT, and it has value outside the game. They’re less likely to be stolen and can be traded. There are NFT marketplaces where they can be exchanged for cryptocurrency or fiat currencies.
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