On this page, we will start by explaining what digital tokens are in gaming before discussing whether game developers should build their tokens or use established cryptocurrencies like Ether.
We will also take a quick look at whether there are any benefits for gaming developers to look forward to when launching their tokens.
What Are Crypto Tokens?
In the gaming industry, a crypto token, which is also commonly referred to as a gaming token or digital token, is essentially a digital asset that players can own in a growing number of blockchain-based games, which also functions as a utility token or in-game currency with real-world value.
Another way to describe crypto tokens is that they are cryptocurrencies used within games. The main difference between cryptocurrencies and tokens is that tokens are typically built on an existing blockchain, whereas cryptocurrencies have their own blockchain.
Crypto tokens enable people who play these games to purchase various digital items, such as weapons, upgrades, new characters, skins, access to new levels/content, loot boxes, vehicles, various other digital items, and other exclusive features, and even physical items and rewards.
This innovative new concept is completely reshaping what it means to play online games in the digital realm and transforming how players engage and interact with their favourite titles. It’s also changing how they participate in digital economies (also known as virtual economies) and own digital assets, which some say is blurring the lines between the physical and virtual worlds.
The majority of crypto tokens used in the gaming world leverage existing blockchain technology, which ensures security, transparency, and true ownership of any digital assets that players decide to purchase.
It’s also now possible on some platforms for players to earn crypto tokens as they play, thanks to the popular new P2E (Play-to-Earn) model. The tokens they earn can then be exchanged for cryptocurrency or fiat currency, such as Canadian dollars.
Some tokens are native to a specific game, whereas others can be more widely used across multiple games.
Although cryptocurrencies and tokens aren’t yet widely accepted on your average iGaming platform, such as today’s best Ontario online casino website, they could soon be accepted as a viable payment solution.
In the meantime, Canadians can easily deposit, play, and withdraw using their local fiat currency (Canadian dollars) and various traditional online payment solutions, such as credit and debit cards, digital wallets, prepaid cards, bank transfers, and various other trusted payment methods.
Crypto gamers who buy and sell digital assets on blockchain gaming networks are participating in the game’s digital ecosystem and have more control over their digital assets.
What Are The Most Well-Known Crypto Tokens In Gaming?
Some of the most notable crypto gaming tokens that you may already be familiar with by now are the following:
- SAND (the sandbox)
- IMX (Immutable)
- GALA (Gala Games)
- MANA (Decentraland)
- AXS (Axie Infinity)
- ILV (Illuvium)
Others can be found in various other games, metaverses, and platforms, such as PlayKey, Horizon Blockchain Games, Sky Mavis, Dapper Labs Inc., Mythical Games, and The Abyss, to name a few.
Should Game Developers Build Their Tokens Or Use Established Cryptocurrencies Like Ether?
Many forward-thinking business owners are already reaping the benefits of having built their own crypto tokens. It has helped drive innovation, boost player engagement, expand their reach, and create new revenue streams.
With the correct approach and careful planning, launching a token enables operators to unlock many new possibilities, remain innovative, and stay one step ahead of their rivals in one of the world’s most highly competitive industries.
Most tokens are typically built on Ethereum, which is regarded by many as the ideal platform for creating a digital currency.
As we head into the future, digital assets are rapidly becoming a bigger part of our everyday lives, especially in gaming, so it is at least worth considering as a business owner to build a unique token. Not only does it help increase revenue, but it also helps to raise awareness of your brand.
Tokens are also beneficial for gaming developers in several other ways. They can be used for setting up a payment system within projects and performing simpler tasks than cryptocurrencies. They also help businesses manage projects and make it easier to invest in expensive assets.
Additionally, it’s far less of a complex task to build a token than it is to build a cryptocurrency. In other words, it doesn’t require a deep understanding of programming.
Developers also gain more trust from gamers when they build their own token, and they significantly contribute to the economic stability of a game.
Final Thoughts
By building a token, game developers can streamline and simplify financial transactions, broaden asset accessibility, significantly improve data security, facilitate digital identity verification, enhance their loyalty rewards programs to boost player conversions and retention, and enable smart contracts in blockchain.
Over the coming years, tokenisation on gaming platforms will continue to revolutionise payments and reshape how players interact with their favourite games. Building tokens opens up new opportunities for developers, and doing so will continue to unlock many other benefits as tokens and cryptocurrencies become more mainstream and widely adopted.
Tokens are poised to change the digital landscape of the gaming sector in ways that we cannot yet imagine, so if you are considering building one, now is most certainly the time, especially if you are a game developer.
