Crypto Custody for Gamers
The crypto gaming market is growing rapidly. It’s one of the most dynamic sectors as it pulls from both NFTs and Defi. NFTs serve as the foundation for many of the in-game items powering all of these games. While DeFi is becoming the way payments are processed by these new types of games.
By combining two of the biggest strengths of blockchain technology, gaming is becoming a new growth driver and engine of adoption. For example, in a survey by the Worldwide Asset eXchange (WAX), 62% of gamers answered they would be more likely to invest in digital assets if they were transferable between games. Something that can only be achieved via NFTs, and a distributed ledger.
Additionally, 84% of developers also showed interest in this type of capability. The blockchain has expanded an impressive 2,000% since mid 2020, according to the Blockchain Game Alliance report published in January 2022. The report states that $2.5 billion of investments for the blockchain gaming space have been added at the end of 2021. The overall blockchain investment has been 4 billion during the same period.
The blockchain gaming industry grew to an estimated $3 billion in total during 2021. By 2025 some place its value at $39.7 billion. At that point, it’ll be the third largest sector in the entire blockchain industry.
All this means that there will be a considerable increase in crypto game assets. This in turn, will drive the onboarding of many gamers into the crypto economy. Finally, those new users will need a type of custody solution for their assets.
The first case is individual custody. Blockchain gaming is built around crypto assets, both fungible and non-fungible. As in most cases in-game items are represented as NFTs, while payments or an in-game currency is some form of token.
This creates a complex environment where individuals have to keep track of several assets. Especially because most of these assets are created by the gaming company, meaning they are custom tokens created for this specific purpose.
This requirement, create tokens easily and cheaply, plus the need to have low fees, so as not to make the games too expensive, means the vast majority of blockchain games are hosted on BNB Smart Chain. The network has seen its daily transaction volume grow exponentially from these games.
A large portion of the assets launched on BNB Smart Chain are game related in recent times. So, blockchain gamers have to be very familiar with the inner-workings of that network and understand how tokens and NFTs are created and transacted on this blockchain.
As most online gamers know, multiplayer games are always the domain of groups. This most often comes in the form of guilds and other types of association of gamers. This is also true for the blockchain gaming world, and it’s encouraged by the game’s mechanics.
In most blockchain games, accumulating tokens or other crypto assets is the goal. The most optimal path to achieve this goal is by pooling resources and time from several people. Since the best strategy is to be in a group, most gamers will naturally gravitate to one.
These clans of blockchain gamers will need a way to jointly manage the assets of the organization. Otherwise, conflict is bound to start and many will just dissolve in fights over the distribution of the assets of the group.
In these cases, most clans have resorted to multi-signature crypto wallets. The control of the assets is delegated to a group of individuals, each holding a private, and these private keys are needed to authorize any transactions.
In both cases, Unido EP has a solution. The crypto wallet is able to accept any custom token from BNB Smart Chain, by far the most popular network for blockchain games. Additionally, the app can also hold custom tokens from Ethereum and Polygon, the other most popular blockchains for this sector.
Second, the Unido EP multi-sig capabilities are perfect for gaming guilds or clans. Groups of gamers can easily set up custody chains for the guild’s crypto assets and review how many approvals are needed for transaction. This has the potential of ending a source of friction for these gamers.
The blockchain gaming industry is on a growth trajectory. It combines two of the most powerful use cases, NFTs and Defi, under a single platform. It’s redefining how digital assets are distributed, market it, and exchanged over the internet. The potential for this sector is enormous and we’re only at the beginning of a much larger transformation.
About Unido EP
Unido EP takes the complexity and expense out of digital asset management for organizations with sophisticated corporate governance needs. Our patented, end-to-end platform seamlessly automates corporate governance and self-custody of crypto assets so you can securely store, manage and invest in crypto without massive overheads.
Unido EP comes with a web-based dashboard and a decentralized application (dApp) featuring a robust set of DeFi tools, easy-to-set-up authority regimes and iron-clad security. All of this is inside a complete digital asset management platform, built with financial institutions in mind but tailor-made for any organization or individual’s needs.