Did you know that points and cash that can be earned from some digital and video games can actually be worthwhile and traded like any other digital currency? In the following article, we will learn about gaming currencies, which are another type of digital currency.
What are digital gaming currencies?
Game coins (Gaming Coins or GameFi Tokens) are a type of digital currency, which is earned and used in decentralized games based on the Blockchain and is traded and subject to price changes as in other digital currencies, and game currencies are used to buy and sell various game items, within Systems in which one usually contains several games, and the method of playing games with the aim of earning game currency and thus the material value they have is called "play-to-earn".
When and how did gaming currencies originate?
In general, the concept of gaming currencies is not new. Since the beginning of video games, the player can gain in-game currency or points to use later to purchase various items, such as characters, weapons, and clothes, etc., etc. But nowadays, when talking about gaming currencies, the intent is to refer to blockchain gaming currencies, also known as decentralized games.
The first known blockchain game, CryptoKitties, was developed by Dapper Labs and is primarily based on the purchase of unique pet cats as non-fungible tokens (NFTs), which the player raises, breeds, and subsequently promotes. Then sell it, and the player gets 80% of the proceeds from selling cats in this game, while the company receives a 20% "breeding fee", and this game has attracted attention since December 2017, when one of the cats was sold for more than 100,000 dollars.
But the renaissance of decentralized games, and with it gaming currencies, occurred remarkably with the outbreak of the Covid-19 disease, and the accompanying huge growth of the gaming sector, as the “InvestGame” report for the first half of 2021 indicates that private investments in the gaming sector amounted to $4.6 billion compared to $1.4 billion in the same period of 2020, and the same report indicates a remarkable rise of blockchain-based games and monitored 24 transactions for blockchain gaming companies - compared to 12 in the fiscal year 2021 - worth $476 million.
Today, gaming currencies are the real investment behind Blockchain games, as most Blockchain games do not have much fun, but are intended for players to earn coins and the non-fungible tokens associated with them, and for game makers to grow and expand the investments placed in them.
What are the main types of gaming currencies?
Like any other digital currency, there are several types that fall under decentralized gaming currencies, including the following:
- Decentraland (MANA): It is the currency used in the Decentraland Metaverse, and its power has gained from the great popularity of this metaverse, as plots of land are sold at fantastic prices that amounted to more than $2.4 million (618,000 decentralization) in November 2021.
- Sandbox (SAND): The Metaverse Sandbox coin is based on the Ethereum blockchain, allowing the creation, development, and trading of various game items and experiences as non-fungible tokens (NFTs).
- AXS: The game's currency of the same name, which is based on the Ethereum blockchain and Ronin's side blockchain, this game is based on the breeding, development, and breeding of monsters called "AXS." Various game elements are available, especially characters and lands. , as non-fungible tokens (NFTs), and in November 2021 a plot of land in the game was sold for an amount equal to $2.5 million.
- Gala: The currency of the Gala Games system, which allows hosting and developing blockchain games, and using the currency to trade elements of various games on them as non-fungible tokens, in addition to reaping rewards in the Gala currency for playing various games. Collaborating with third-party game developers, including well-known video game companies and brands.