Having a bit of trouble differentiating crypto games and crypto mining? What is a cryptocurrency, to begin with? These are just some of the many questions we’re looking to answer for you today.
An overview of cryptocurrency
Cryptocurrency is a currency using a distributed ledger system such as that of the traditional internet. This system uses public and private keys that are generated from a central database and are mathematically generated together using some particular algorithm.
The main attraction for cryptocurrency users is the speed and efficiency with which transactions can be completed. The blockchain is the foundation of all cryptosystems and is also commonly referred to as the ledger of value.
The word “blockchain” is even misused by many as cryptocurrency. The truth is, it is not synonymous to one another. However, to put it simply, blockchain is the technology that makes cryptocurrency possible. Without blockchain technology, crypto and many other digital currencies would never see the light of day.
Since its introduction, the core concept is always the same: each computer in the network has a unique virtual key, or address, that acts as a guarantee that a certain transaction has been made and that the balance of the ledger has been correctly calculated.
As the need for more secure forms of interaction increases, more businesses will turn to these types of currencies. An example of an application of cryptosystems is what is called a digital exchange, which is often used in online trading for commodities like gold or other similar items.
A digital exchange works just like a typical exchange, with one party (you!) selling an item you have for another party (seller), and the other party is buying.
Crypto in games
If you are someone new to cryptocurrency, chances are you are here to know more about it. If anything, you’re here to learn about crypto games or the games that use cryptocurrencies, as this is pretty much one of the many talked-about topics on the internet right now.
The internet is flooded and full of stories about blockchain, Bitcoin, and the like, but none of it really was that helpful. All it seemed to be trying to hype it up or knock it all down. However, what finally came upon me was a good starting point.
Another term you may have also stumbled upon is NFT. NFT stands for non-fungible token and it basically is a unit of data that is stored on a blockchain (digital ledger). This helps identify a digital asset (whether it’d be money or anything else) to be completely unique.
With the help of a digital ledger or blockchain technology, these assets cannot be altered, counterfeited, replicated, or interchanged. It can be used for many digital items including photos, videos, and of course, digital currencies.
What are crypto games?
Crypto games, now also referred to as NFT games, are starting to take off because of the accessibility of cryptocurrencies over the recent years. How is crypto being integrated into games you may ask? It’s fairly simple, apart from involving cryptocurrencies as a mode of payment, cryptos can also be earned which can then be exchanged for real-life money.
The rise in popularity of decentralized autonomous corporations allows players to interact with each other in order to help each other earn in the process. Just like what you would find in an MMO game, players can interact, buy, and sell assets within the game.
For popular games like Axie Infinity, assets are composed of diverse types of digital tokens which can be used as though they had traditional forms of money like SLP. Players will be able to purchase NFTs through their cryptocurrency broker in order to secure their assets.
NFTs are highly fluid and transferable, acting similarly to how an IOU would be issued. By securing assets with NFTs, the integrity and liquidity of the underlying asset are maintained, which greatly adds to the security and stability of the game economy or coinmarket.
With each block of transactions, there is a new form of information created, which is sent along with the transaction. When all is said and done, the new transaction includes the previous transactions that have already happened – including the fact that you mined the blocks that gave you those coins.
The whole process is basically what crypto mining is all about. Simply put, crypto mining is the process of earning digital assets using cryptographic equations. This is done through the use of high-performance computers. Hence many people who are into tiền điện tử are hoarding plenty of high-power computers for mining.