GameStop announced Monday that its non-custodial, browser-based cryptocurrency wallet is now available. GameStop Wallet is currently in beta and works with the Ethereum (ETH) network and uses Loopring Layer 2 technology to facilitate transactions.
The company also announced that its NFT Marketplace will launch sometime during the second quarter of this year. GameStop’s second quarter is scheduled to end on June 31, 2022.
With GameStop Wallet, users will be in complete control of their digital assets. With the wallet, they can store, send, exchange and receive NFTs and cryptocurrencies. The GameStop Wallet will also work seamlessly with GameStop’s upcoming NFT Marketplace when released.
A non-custodial wallet means that users get their own unique 64-digit key to access the wallet. Custodial wallets are wallets in which a third party holds the key to the owner of the wallet.
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GameStop Wallet can be downloaded as an extension with Google Chrome or Brave browser. According to the wallet’s website, the wallet will also be available for use with iPhones. The wallet will work similarly to MetaMask, and users can migrate their MetaMask wallet to their GameStop wallet.
And while it’s a hot wallet — only digital view through a browser or on a mobile phone — it’s compatible with cold wallets, or physical devices that must be connected to a computer and accessed with a PIN. Cold wallets are safer than hot wallets.
The transactions used by the GameStop wallet are facilitated by Loopring, a layer two exchange protocol for the Ethereum network. Layer 2 technology attempts to solve a number of problems plaguing the Ethereum mainnet, or Layer 1. Layer 1 is often crowded with a large volume of transactions that leads to extremely high transaction fees, or gas fees, on the ETH network.
However, users will need to activate Layer 2 before they can use it. When users initially set up their wallet, it will run on the Ethereum Mainnet, or Layer 1.
According to the GameStop Wallet FAQ page, to activate tier 2 users, they will need to deposit ETH into a tier 2 balance, click activate, and pay a small fee. By using the Layer 2 exchange protocol, wallet users should experience faster transaction times with lower gas fees.
It’s worth noting that in the wallet’s privacy agreement, the company says it may use user data in addition to tracking their location. Anonymity is a huge draw for many investors in the Web3 space, so this could be a point of contention with potential clients.
But with a Virtual Private Network (VPN), users can restore some anonymity by hiding their IP address. However, using Incognito mode with Chrome – which does not save browser history, site data, or cookies – will reduce the amount of data that is shared. Brave Browser will do all this automatically and even block annoying pop-up ads.
The integration of NFT and Crypto in video games is a divisive topic among gamers, with many seen as an unnecessary and intrusive way to monetize their hobby by video game publishers.
However, some see it as a way to have a more rewarding experience by providing real ownership of digital assets through blockchain technology. Technology can provide real value to an asset that many players spend countless hours acquiring.
Game developers, including Ubisoft and Square Enix, faced a major backlash in support of NFTs, with the former forced to stop a planned NFT integration in Ghost Recon Break Point Because of the player’s reaction. But many GME holders hope that the company’s move into the crypto space will fuel the stock’s journey to the moon.
GME is up 3% Monday in premarket trading to $96.58, but after just a few hours, it’s down slightly to $95.33 a share.