Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
What Attracts Investors to Blockchain Gaming?
Cointelegraph | Anatol Hooper | Dec 5, 2019
Blockchain is transforming the financial industry right before our eyes, with many market onlookers anticipating a complete replacement of existing payment, trading and banking infrastructures. Blockchain and finance seem like the perfect match, but there are other sectors, for which the technology may play a game-changing role. For one particular industry, the latter adjective isn’t figurative at all, because blockchain can do just that – change the gaming market. This is a unique chance for investors, and it seems like they don’t want to miss it.
During the last few years, the gaming industry has been pampered with several innovations at once – virtual reality (VR), augmented reality and artificial intelligence. But it is blockchain that can have the greatest contribution, bringing more transparency and trust to the gaming space.
Investors don’t want to be simple observers and are jumping on the blockchain gaming bandwagon. For them, the technology has a disruptive potential that can be converted into profitable deals. Thus, they consider this emerging technology to be a breakthrough in the gaming industry.
See: Podcast Ep27-Mar 1: Blockchain Gaming and Esports with Shidan Gouran
Transforming gaming at all levels
But how can distributed ledger technology (DLT) help both developers and gamers? Blockchain’s capabilities are limitless in terms of use cases, so there are many ways it can transform the gaming industry:
Blockchain can help developers remove grey market trading of in-game assets
Game developers have designed their games to be closed ecosystems, which ensures that any value inputted into the game cannot be extracted. For instance, players were not able to sell their assets for money, use them in other games or trade them for another game’s assets. This led to the creation of grey markets where players could come together to facilitate these types of activities.
Blockchain technology enables publishers to embed rules into their tokenized assets that enforce a transaction fee upon each transfer of the asset, regardless of where that asset is being sold. As a result, users are free to trade their assets as they see fit, and publishers can continue to generate revenue beyond the primary market.
Blockchain enables projection of value to intangible assets
Everyone realized the close interaction between DLT and gaming when CryptoKitties came out on Ethereum. The game allows players to purchase, breed and trade unique virtual kittens with cryptocurrencies. This collectible game uses so-called non-fungible tokens (NFT) since each digital kitty is unique. So far, players have spent millions of United States dollars for the kitties, with the most expensive one being sold for 600 Ether (ETH) — over $173,000 at the time.
Games like CryptoKitties demonstrate the power of DLT through the tokenization of assets. This ensures that each asset can be proved to be unique or rare; it ensures that users have ownership over their digital assets; and it allows these assets to interoperate with other applications outside of their original ecosystem.
See: Tencent launches new blockchain game merging concepts behind Pokémon Go and CryptoKitties
These features all contribute to a greater perceived value by the user, which increases the propensity to spend real dollars within the app. While CryptoKitties showcased the attributes that DLT could bring to gaming, it failed to create an engaging experience that would entice a wider audience. Next generation blockchain-enabled games, like Epics Digital Collectibles, seamlessly integrate DLT with a consumer-centric, captivating and gamified experience.
Blockchain can help with buying, selling and storing in-gaming assets
With DLT, the issuing and trading of in-game assets reach the next level.
Developers can create games that allow players to buy in-game assets with cryptocurrencies, which makes the process easier, more rapid and secure. Also, cryptocurrencies can address the challenge of microtransactions. However, publishers understand that the average consumer is not ready to make a transaction in cryptocurrencies, and thus, they obfuscate these crypto mechanics behind a familiar fiat payment gateway.
Moreover, developers can create specialized frameworks for digital assets used in games. As mentioned, CryptoKitties was built on Ethereum, but there are already blockchain-based standards focused exclusively on gaming. One such example is dGoods, which is a token framework developed initially for the EOSIO protocol.
Mythical Games is one of the creators and developers that has used dGoods for its in-game assets. The company is set to launch its first game, called Blankos, in 2020. Blankos is projected to be the biggest launch of a blockchain-enabled game to date, accessing the wider gaming communities on PC, console and mobile.
Soon, more developers will begin leveraging digital asset frameworks and will collectively improve the operation of in-game assets.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
Support NCFA by Following us on Twitter!Follow @NCFACanada  |
Related Posts
Is ChatGPT Better at Predicting Stock Prices Than Traditional Models?- Hong Kong hits major fintech milestone as half the city’s population signs up for HKMA’s Faster Payment System
- SEIZING OPPORTUNITIES: UNLEASHING INNOVATION AND ENTREPRENEURSHIP
- Quebec’s Draft Regulation on Confidentiality Incidents
- Coinberry gets relief from OSC to trade crypto
- Popular Payment Methods in the Canadian Gaming Industry
Leave a Reply