The monetization of video gaming has gone through a fundamental shift over the past decade. Single sale games are increasingly uncommon – instead, users often buy in-game items through micro-transaction economics. Often, these games unintentionally create a secondary market between users for highly valued or rare items. Due to the nature of trading in games, these secondary markets often exist in a ‘gray’ area. Trades are potentially risky and swapping back-and-forth from fiat currency can be tedious.
Trading items between games is even more difficult. Some gaming platforms offer limited functionality for these actions. The Steam platform offers an inter-game inventory for certain items, and a marketplace to trade them. Yet, as most massive multiplayer online games are not operated through Steam, this marketplace is unavailable to them. Users that sank hundreds of hours into a game would lose all generated value if they switched to a different MMO. Newcomer cryptocurrency, MMOCoin (MMO) hopes to change this dynamic.
What is MMOCoin?
Blockchain technology offers a simpler way to swap between games. MMOCoin created their own marketplace that caters to gamers looking to trade assets between disparate games. Using the native cryptocurrency, MMOCoin, the marketplace holds items in escrow while awaiting sale. This overcomes one of the largest roadblocks in inter-game transferring – the level of trust required. Rather than requiring trust from every buyer or seller, a user only needs to trust the marketplace provider.
Further, MMOCoin offers a tiered staking system unique to their blockchain. Rewards scale based on the amount of cryptocurrency staked. The more MMOCoin held for staking, the more rewards the user will receive over time. This encourages users to keep their funds within the MMOCoin ecosystem.
Cryptocurrency as a Common Currency
Cryptocurrency as a bridge is not a new concept. Popular guild site hosting service Enjin released their own coin over two years ago. Enjin Coin enjoyed a considerable amount of success in the interim, finding adoption within the ecosystems of several high-profile games. They’ve spent that time refining their own marketplace, which now sets the standard for ease of use.
Ripple serves a similar purpose, albeit in the financial world rather than the gaming one. Their network allows financial institutions to rapidly exchange fiat currencies. They’ve accomplished this by establishing XRP as the perfect bridge currency, maintaining a constant liquidity pool of the cryptocurrency.
Article By: Adam Stone