Top Gaming Cryptocurrencies
Cryptocurrencies and Blockchain technology in general are starting to create waves into our daily lives. While some industries are still reluctant to adopt Blockchain based solutions, the majority of industries are slowly but steadily starting to embrace the unparalleled potential of Blockchain technology. With cryptocurrencies and Blockchain technology already making its presence felt in industries such as rental and ride sharing, aid, charity, real estate, healthcare, finance etc, many will be surprised to find out that the gaming/eSports industry is perhaps best suited for Blockchain integration.
There are many games that already use in-game currencies that players purchase, spend and even trade. These can be typically bought within the game by using fiat currency or gift cards and coupons. Conventional gaming environments like these often promote such gaming currencies and associated items within the game, so that the user gets enticed and spend money.
This all has changed with the popularity of gaming combined with cryptocurrencies and their massive potential. Projects have started tokenizing certain in game currencies by basing them on a Blockchain network. Not only that, they usually attribute some value and existence to them beyond its use as just a gaming currency. Blockchain technology, thus allows to trade game assets outside the gaming environment via the Blockchain. So let’s find out what the top gaming cryptocurrencies have to offer.
The Three Projects Under the Spotlight (Decentraland, Enjin and WAX)
Like the cryptocurrency market, the video game industry has also exploded in valuation, and a new class of game related cryptocurrencies have emerged with a significant price and volume. Analysts agree that the aforementioned three projects, namely Decentraland, Enjin and Wax, are the top gaming cryptocurrencies, targeted towards a new breed of investors that give priority over the fundamentals rather than its price potential.
Founded by Argentina based Esteban Ordano, Decentraland as the name suggests is a decentralised virtual world, where users can buy parcels of “LAND” each sized 10m x 10m. The native currency of the platform is “MANA” and Land auctions are held on a weekly basis. At the time of writing, Decentraland is valued at $0.054509 USD with a total marketcap of $57,242,242 USD. As of 23/05/2019, it is ranked 94th according to coinmarketcap, and is currently trading in 60 markets in exchanges around the world.
Goals & Vision
The main aim behind the Decentraland platform is to allow application developers to fully capitalise on economic interactions through the trading of goods, services and currency. It creates a core ecosystem that facilitates instant, cost-effective payments on a global level, between any two parties on the internet. As a result, a trust less payment channel can be established between parties.
Advantages of Decentraland
- One of the major advantages of Decentraland is that it operates on a public Blockchain. This renders all virtual world assets globally accessible. As the concept of the platform involves the complete ownership of virtual “land”, it uses Blockchain technology to ensure ownership validity. Furthermore, users are handed with complete control over all contents of their own land.
- An inflexible digital asset which is maintained using an Ethereum Smart Contract is used to represent every plot of land purchased. The records are then stored on the Ethereum Blockchain, making it a fool-proof system.
Use-cases of Decentraland
The use cases for Decentraland involve a range of different industries and sectors, such applications, advertising, social, etc,
- Advertising: The project involves users owning land and interacting each other. Real world brands can advertise by using the billboards near the virtual plots of land or use high traffic land parcels to promote their services, events and even products. Brands can also position products as a way to engage with their audience.
- Digital Collectibles: Inside the platform, users can publish, distribute and collect rare digital assets which are issued on the Blockchain by various creators. Just like other projects involving virtual worlds, such assets are tradable inside this world.
- Social: Decentraland allows group members of other online forums, chat groups, and other centralised multiplayer games, to import their communities into the ecosystem.
- Additional Use Cases: Because there are no technical limitations on what could be developed on the platform, it creates an avenue for newer use-cases to arise. Already we are seeing efforts being made to disrupt sectors such as virtual tourism, 3D design, education, therapy, training and professional development.
Notable Partnerships: Decentraland has achieved quite a number of partnerships since its release. Some examples include, the integration of Decentraland to Payjar’s Telegram tipping bot, Support added for trading on marketplaces such as OpenSea, and being featured in HTC’s Blockchain smartphone.
Goals and Vision
With one of the most ambitious roadmaps in the cryptogaming world, the project has been busy in developing a smart wallet for in game purchases, along with an escrow smart contract. The project, which is based around a static PoS algorithm, ensuring that the token holders can compete for digital asset rewards along with cash rewards.
Thus, the main aim of the Enjin ecosystem, which consists of the Enjin Platform, Explorer, Beam and Wallet, is to empower gamers with a convenient way to own digital assets, thus enabling the gaming industry to increase revenue. Enjin’s set of tools and services can be employed by other companies who look towards creating Blockchain based products, or to utilize tokenized digital assets.
Advantages of the Enjin Ecosystem:
- Proven Concept: Virtual currencies in the gaming industry have already been proven to be a viable concept, with projects like Game Credits and MobileGo being proof. Thus, the Enjin project is already tapping into a tried and tested industry niche, as evident from Enjin’s community of Minecraft, which is also the largest gaming community on the Enjin platform.
- Utility Token: Enjin is not classified as securities by regulators and is instead deemed to be a utility token. This allows it to get listed on prominent exchanges without any legal barriers. Trading on exchanges around the world is critical to a project’s success and public adoption.
- Sizeable Economy and Incentives: The Enjin platform experiences a lot of virtual good trading, totalling to millions of USD each month. Also, lower transaction costs translate to almost 5 to 10% increase in revenue.
Use-cases of the Enjin Project:
- In-game rewards: Some examples of Enjin in game rewards include finishing a quest and getting a sword, referring a friend and earning in game currency and cutting down a tree and ending up with a tokenized branch.
- Trading: Enjin Coin based virtual items, can be earned and purchased by gamers are not stored on the game server, as other centralised systems. Rather, it is stored in private, secure Enjin Wallets. All transactions, whether exchanging items, or tokens for items, have to be confirmed by a game through the Enjin wallet.
- Escrow Support: Enjin added support for the escrow of multiple Erc20 tokens. This, combined with trade confirmations, creates a rigid and secure system, eliminating fraud and scams in any gaming environment.
Enjin has also achieved several partnerships across different sectors. Examples include Titan Flight Studios, which was featured as part of Enjin’s early adopter program, the partnership with NRG eSports and Unity technologies, as well as the major partnership with Samsung, just to name a few.
WAX.io is another Blockchain based gaming platform, and also acts as an ERC 20 token. The platform, which was developed by the founders of OPSkins, to considerably expand the market for purchasing and selling virtual items. The platform also allows the trading of different digital assets, serving as a marketplace as well. At the time of writing, Wax.io is valued at $0.068262 USD, ranked 87th according to coin market cap. The total market cap is around $64,356 ,938 as of 23/05/2019 and is traded in 32 markets in exchanges such as Livecoin, C2CX, Bitrue, HitBTC, Tidex, IDEx and Huobi Korea among others.
The Wax token, which is an ERC20 token, comes with an intrinsic value, functioning similar to platforms such as VEChain, OmiseGo, Zcash, Lisk, Binance, Stratis etc. It serves as the main tool for users to trade assets on the exchange, it also allows them to use the token in platforms which delegated nodes, or “guilds” confirm transactions for any specific game.
Advantages of using WAX.io
- Adopter incentives: Both the wax platform and the wax token, is aimed at generating money, using the fees for sites that adopt the project. This means that listing sites and selling sites want to list digital assets to generate some earnings. Even other projects from OPSkins, which can be regarded as competitors have incentives to use Wax’s platform.
- Advantageous for Virtual Item Traders: Apart from usecases in the gaming world, wax has some real-world advantages to traders, who can buy or sell digital, virtual and even physical items. This makes it possible to trade any digital or digitized item for any other, using the same process.
- Asset Contracts Manage Volatility: Wax pegged asset contracts, make items sold for wax tokens, almost immune to price volatility. The potential volatility, if it exists, could either increase or decrease the value of the original asset, which in turn reduces the efficacy of using a market driven currency. Wax solves this plaguing problem by using pegged asset contracts. These pegged asset contracts are basically temporary smart contracts, existing only during the duration of the transaction.
- Known team Behind project: One of the biggest advantages for WAX is the presence of a reputed, reliable and effective team, which is the same team behind OPSSkins marketplace. WAX is the third global marketplace built by the team, after the first two achieved instant success in their respective categories.
Use-cases of Wax:
Wax.io’s usecases extend beyond the world of in game digital items, which includes the nature of the Wax marketplace itself. The Wax platform itself supports the purchase, selling, trading and even renting of any tokenized physical item, as well as any tradable digital items.
Wax.io has also carved up numerous partnerships including the one with StrongBlock. Big names such as Stelian Balta, the founder of Hyperblocks and Hyperchain Capital, also announced support for the Wax ecosystem. Other partnerships include Fnatic, Animoca Brands, Z1BR, Robot Cashe, and hash rush.
It is expected that larger numbers of gamers will be earning virtual currencies, which are actually tradable as crypto-assets. Developer and game players are thus rewarded through monetization, which can lead to the development of new types of digital micro-economies within games. Besides the aforementioned three projects, other projects such as GameCredits, MobileGo, Ionomy, Loom Network have started making headways into the crypto-gaming world.
Integrating cryptocurrencies into the gaming world is not a new phenomenon, as many games have already started accepting Bitcoin for online payment. As projects such as WAX, Enjin and Decentraland achieve more success and mainstream awareness, people that have not been previously exposed to cryptocurrencies, could find themselves as holders of cryptocurrencies by earning through their favourite game. This increase in adaption could very well revolutionise the future of how we use in-game purchases and tokenised asset classes. Also while these projects are currently considered to be the top gaming cryptocurrencies, they will have to continue to develop & execute their plans to fight for their place at the top.
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