Since 2020, both cryptocurrency and the gaming sector have seen substantial evolution. While most economies around the world were forced to shut down as a direct consequence of the Covid-19 pandemic in 2020, the video gaming and cryptocurrency industries were among the few that saw incredible growth.
As governments in most parts of the world imposed countrywide lockdowns and restrictions, people naturally turned to sources of entertainment within the confines of their homes. Simultaneously, advancements in PC and mobile gaming led to an increased convergence of interest in crypto within the gaming community. And unsurprisingly, blockchain technology and NFT art emerged as the bridge that connected crypto with gaming.
Even though the global gaming industry continues to grow across all markets, it largely remains structured to primarily benefit game developers only. As a result, gamers can produce only little long-term value for themselves.
In contrast, blockchain technology in gaming is driven by NFTs — digital assets that represent in-game items and content. NFT tokens are indivisible, rare, and unique, and blockchain technology facilitates player ownership, scarcity, interoperability, and scalability.
In-game items: the key player in the gaming ecosystem
In-game items and the microtransactions that enable them have been a foundation of the modern gaming economy since the late 2000s. Developers have discovered innovative methods to integrate these items into their products and keep players coming back for more, whether it’s a power-up, more life, or skins.
In fact, according to the Online Microtransaction Global Market Report 2021, the global online microtransaction market is anticipated to reach $51.09 billion in 2025 with a CAGR of 10%. Typically, In-game items provide developers with the option to keep games fresh and exciting, as well as a chance to breathe new life into games that may be declining in popularity. They also provide a mechanism for players to improve their gaming experience by adding new challenges and accomplishments.
Such in-game items and other virtual goods can even be considered as a new digital asset class that has risen thanks to the exponential development of virtual transactions. With users becoming more accustomed to purchasing virtual goods, microtransactions have become the primary source of revenue for most in-game purchases. And this business model has developed tremendously since the early 2010s, thanks to the advent of in-game currency and the ever-growing collections of rare in-game items.
Traditionally, in-game purchases have been one-time, non-transferable expenditures that are locked in a particular gaming system. The majority of existing in-game marketplaces lack transparent and authorized in-game or out-of-game secondary markets to transfer in-game items.
As a result, in order to swap these assets, gamers frequently turn to black and grey marketplaces. And more often than not, the game publisher owns the in-game assets and decides how the player can access, alter, or transfer them.
However, this concept is turned on its head by blockchain and NFT gaming.
The future of the game item markets with NFTs
Blockchain technology allows for the creation of immediate secondary markets that operate outside of games and in-game economies. Using NFTs in gaming changes the whole face of gaming by giving gamers control of their in-game assets instead of game developers.
Thanks to blockchain tech, gamers can also get complete access to their in-game purchases, sell them to other players for money, or transfer them to other compatible games using blockchain technology. They can also buy the entire game economy and potentially earn millions of dollars.
The benefit of NFTs in the game item market is that they allow the transferability and ownership of digital assets. Skins,” or cosmetic enhancements, clothing, or armament that may be used to customize gaming avatars, are an important aspect of game item markets. Users typically spend hundreds of dollars on skins that improve the aesthetics of a game or character but not the gameplay.
Several platforms now allow players to customize and design their in-game avatars in a number of ways, thanks to NFT gaming. Skins have essentially evolved into digital art for video games, and NFTs enable digital artists to claim ownership of and validate their skins in the future if they choose to sell them. NFTs may also be used to transfer skins and other accessories across games.
NFTs are also changing the way gamers think about online gaming and purchasing in-game assets. Microtransactions, or in-game purchases, are supported in large part by monetization strategies that enable players to earn in-game currency by fulfilling in-game activities such as signing up, filling out the information, winning matches, and so on.
In-game currency is typically used to purchase skins, cosmetic items, and other virtual clothing for a player’s character. And it can be had with real money using a credit card or debit card.
Changing the game: GameStar Exchange
There’s no doubt that NFTs and blockchain tech is disrupting the game item markets. And GameStar Exchange is leading that charge. A revolutionary trading platform that allows peer-to-peer traders to directly connect their wallets to participate in the market, GameStar Exchange provides an efficient, safe, and profitable platform for global digital asset enthusiasts.
Game items, game currency, and CD keys are all in high demand within the global gaming market. GameStar Exchange is addressing this demand by offering a borderless platform for the P2P trade of game items, game currency, and CD keys through a decentralized crypto wallet.