Crypto Payments and the World of GameFi. Opinion Piece
Written by XEROF CEO Nick Ntigrintakis
Play-to-earn (P2E) games like Decentraland, Sandbox, and others are turning the traditional gaming sector on its head. P2E games differ from typical games primarily in that players participate to earn rewards, not to win, almost like Monopoly played for real money.
The rapid rise in popularity of these P2P games, also known as GameFi, has led to a surge in demand for trusted crypto payment systems. In this article, we will dive into the world of GameFi and explore why gaming companies use cryptocurrencies, the relationship between crypto payments and gaming companies, what type of crypto payment solution is best for gaming companies, and more.
Why are Gaming Companies Using Crypto?
The gaming industry has begun to use cryptocurrencies in a variety of ways, including rewarding players for their in-game achievements and accepting crypto as payment in many online casinos. In the gaming sector, cryptocurrencies can be used in a variety of ways. The factors that make cryptocurrencies beneficial in the gaming sector are examined below:
No Intermediaries: by eliminating any middlemen, cryptocurrency makes playing games simpler, which leads to a faster and more exciting gaming experience for players.
Highly Secure: Gaming sites that use blockchain tech allow users to feel confident that their funds are safe and well-protected, thanks to powerful data encryption technologies such as private keys.
Develop with the Audience: Blockchain technology will strengthen the democratic nature of the gaming industry. Developers can let the player community vote on upcoming changes and developments they would like to see in the game, similar to a governance system with any other DeFi protocol.
What is the Relationship Between Crypto Payments and GameFi?
P2E games are highly unique in that they allow players to earn in-game currency with real value. Players earn by moving through the levels of a game. Due to GameFi's recent growth, there is currently a high demand in this industry for fast and secure crypto payments.
So, how does this all work in practice? There are usually two major tokens in a game. One is the in-game token, which can only be used in the game itself for in-game purchases. The utility token can be used for governance or transferred outside the game. In certain cases, the utility token can even be used to purchase NFTs directly on secondary markets.
Thanks to the multi-functionality of the utility token, this means that the player will make many transactions, which in turn means that the host gaming company must provide a reliable crypto payment service in order to attract players. It is also important that the chosen cryptocurrency payment service accepts a range of cryptocurrencies.
A transaction occurs every time an NFT is bought, sold, or exchanged. This means that players typically make many more transactions than people who buy tokens for investment purposes only. This has the effect of making the transaction flow and commitment rate much more consistent. Players are constantly pushing themselves to earn more, play more, and collect more NFTs to either advance faster in the game or sell the NFTs for cryptocurrency and then exchange that cryptocurrency for fiat currencies.
In some parts of the world, users earn enough to consider making P2E gaming a full-time job. Therefore, it is imperative that any gaming business needs to be able to accept and process cryptocurrency payments quickly.
How XEROF is Helping Gaming Companies with Crypto Payments
The fact that many gaming companies have substantial treasuries full of cryptocurrencies presents a hurdle, and these companies often choose to convert their cryptocurrencies directly into fiat currency without the help of an outside party. This process usually takes a long time, and gaming companies are likely to encounter banking friction when processing payments. However, gaming companies that work with XEROF can benefit from fast and easy conversions.
With the help of XEROF Pay, merchants can quickly accept payments in cryptocurrencies and convert the cryptocurrency into fiat money. Using this cutting-edge technology eliminates the risk for the merchant, allowing gaming companies to focus on offering their products and services instead of worrying about the security of their transactions.
XEROF not only provides superior crypto payment processing services but also provides cryptocurrency owners off-ramps so they can use their coins to buy high-value products such as real estate, expensive jewellery, and other luxury goods. The platform also helps customers exchange their cryptocurrencies for fiat. In addition, there is also the option to buy more cryptocurrency without worrying about potential banking friction.
Overall, XEROF is a reliable crypto payment gateway that is well-equipped to facilitate secure transactions for gaming and gambling companies and ensures that end users receive their money in a timely and safe manner.
The benefits of cryptocurrencies' security features and ability to grant additional ownership rights to digital assets have led to their rapid integration into the world of GameFi. Reputable crypto payment gateways like XEROF ensure that all crypto payments are processed quickly and securely. Gaming companies that have a reputation in the P2E community for fast crypto payouts will have an advantage over their competitors in this highly competitive industry.
If you would like to find out more about crypto payments or discuss further, you can contact XEROF here. In addition, we will also be attending this year's AIBC event, which will be held March 13th-16th, 2023, at the InterContinental Hotel, Dubai. During the event, XEROF shall have a booth BR20 at the venue, and gaming and gambling companies who would like to find out more about XEROF's payment services are encouraged to reach out to schedule a meeting.
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XEROF is a Swiss-licensed Crypto Gateway that offers exchange services for customers who possess crypto wallets and want to use them as fiat currency to purchase real estate properties and luxury goods.Learn more about XEROF