The Challenges and Benefits of Cryptocurrency In The Gaming Industry
The ever expanding influence of cryptocurrency has deeply penetrated the gaming world, giving rise to the term “GameFi”, which is simply the incorporation of gaming into finance. Although GameFi is not limited to any particular game or platform, blockchain has given rise to increased financial freedom for those in developing countries through the adoption of play-to-earn (P2E) gaming models. The work of play-to-earn communities or guilds such as UniX Gaming is remarkable in how their models run on their own ecosystems. These in-game economies are not 100% tied to conventional crypto – NFTs are the lifeblood of play-to-earn, and despite their incredible value within popular P2E games such as Axie Infinity, the use of both NFTs and crypto in the gaming industry still has its challenges.
The obvious one is the constantly mentioned problem of volatility. The parents of children who spend money in conventional games barely know how much money their kids are spending a lot of the time, let alone if those in-game purchases were crypto-based. However, becoming a UniX scholar is only for those 18 and over. Keeping track of one’s spending habits in a blockchain based metaverse will need a way to easily present accurate, historical financial information to players while the value of present transactions are constantly shifting.
Entering the world of play-to-earn on your own can be expensive. Therefore, the digital creatures known as Axies needed to play Axie Infinity can be difficult to obtain. Play-to-earn guilds issue a profit-sharing model known as scholarships to bring willing new players on board without them having to pay large amounts. Axies are bought by the guild, and are leased to these new players (known as scholars), providing them with recruitment, coaching and management, in exchange for a percentage of the revenue they earn in the game.
Due to the decentralised and anonymous nature of many cryptocurrencies, the market is riddled with rug pulls and scams. Many blockchain-based projects and DAOs have a necessary level of regulation and monitoring to combat this, however that doesn’t protect everyone. One’s own activity off-platform is just as important when it comes to protecting their assets. Gaming communities often communicate on large Discord servers. Upon joining one, users without the relevant privacy settings applied may be bombarded with direct messages containing “offers” from shady individuals posing as people who, for some reason, want to hand out free scholarships or cryptocurrency in exchange for clicking a link. Another level of awareness beyond what is currently common wisdom is required to navigate the new ways we use the internet in modern times.
GameFi, through play-to-earn, is changing the world. Already, UniX has provided close to 600 new jobs through scholarships, breeders, research and development, moderators and teachers. For such a new market, it is incredible to witness the speed at which the technology supporting blockchain based gaming is being innovated and improved upon, as well as its current impact on the jobs market. At its core, there are clearly many passionate and highly skilled people laying the foundational building blocks which will ultimately support the coming metaverse. Hopefully in the near future, they will find and finalise ways to seal the cracks in the matrix of gaming and finance.
