How Blockchain Boosting Gaming Economy? With the business model emerging now and then it’s quite natural to see several industries being influenced by such emergence. However, the gaming industry has seen drastic changes in its operational model with a sudden shift from mere fun to earning aspect. The major role player in such change is the introduction of Blockchain technology into the sphere.
As a result, today we can see rising social signals in the Metaverse in the form of a game avatar, weapon, etc. However, the question we have is – “Is Blockchain a long way companion to the gaming world?”
Global Online Gaming Market
The gaming industry has benefited immensely from the Covid-19 pandemic. The times when the entire world including the big industrial role players struggled to survive Gaming Industry witnessed its blooming period and exploded into the fastest-growing entertainment industry. While the global film industry recorded a worth of $100 billion, the gaming market alone enjoyed a worth of $180 billion globally. Moreover, the experts predict that number of online games streamers will see a sudden rise to 1 billion by 2025 which is observed as one in nine people today.
Why Blockchain for Online Gaming Industry?
Once the former CEO of Starbucks made the remark stating the need for a third physical space as the third space besides home and office to assemble the right meaning to human existence. Though the concept was hinted toward the coffee shop yet its implication has extended to the gaming industry in a short time. As a result, today’s generations see Metaverse be the new shared digital space where online engagements with friends over games, music, etc have increased. So are we now crediting the Blockchain? Certainly Yes. Let’s see why.
Imagine the culture where you are been paid to play, isn’t that a cherry on the cake? Axie Infinity has made its cherry taste better with its NFTs and has reshaped the entire gaming economy. Here, the users can earn SLP (Smooth Love Potion) just by playing and competing. Guess what, several users in the Philippines earn their monthly salary merely by playing Axie Infinity leading to the formation of organic gaming culture.
On the Blockchain network there exist no barriers to entry and it becomes cool to participate in games from anywhere and earn income. Also, they are based on open protocols where building games becomes easier and cost involvement is reduced to the base layer blockchain. Also, with Open and Permissionless blockchain environment users are easily able to switch games with ease and add assets such as NFTs in the form of weapons, avatars, and skin with them.
Play2Earn (P2E) Model making a buzz
As the name suggests this gaming model focuses on maximizing player engagement in exchange for better profit. As a result, this serves as the foundation for the blockchain and NFT based gaming cultures today which are backed by three key principles.
- It provides players a way to earn a reward as per their engagement rate usually in the form of in-game currencies.
- Furthermore, allowing the enhanced ownership of digital assets which can easily be traded and monetized.
- Creating a transparent and participatory environment within in-game economies while shaping the top-level gaming experience.
As per the reports of Token Terminal, the annualized revenue of Axie Infinity shook out at $2.7 billion in less than a year giving a big boost to the Play2Earn concept.
Evidently, gaming economies are the newest and long-lasting future building on the Permissionless network and making it possible for the entertainment industry to touch new heights. Hence, it would be wise to remark that blockchain technology is the vehicle using which users can own their in-game assets. As a result, Blockchain is revolutionizing the gaming industry across the world.