GameFi gets a lot of attention and deservedly so. There is a lot to be gained by having in game assets and tokens tied to different blockchains. It is a complete revolution from what the gaming industry is accustomed to.
On Hive, we know the success of Splinterlands. This was the first game to break out into the big time, at least for blockchain gaming. It is likely going to be a small fish in a much bigger pond when all is said and done.
Another way of stating this is that GameFi is going to be enormous.
Eventually, it will make the present gaming industry look minor. The titans of gaming today will see their market caps easily surpassed.
AAA Companies Will Be Peanuts
This is a sentiment echoed by Jack O’Holleran, CEO of Skale. He feels that while we are still searching for sustainability, the potential is enormous.
GameFi's constantly evolving model could make “today's AAA game companies look like peanuts,” said Jack O’Holleran, CEO of Skale, a multichain Ethereum-native network that powers Web3 games. In fact, blockchain-based games and metaverse projects are showing resilience amid a winter that has dragged down many players in the crypto industry, with $1.3 billion raised in the last quarter, as reported by DappRadar.
Finding a sustainable GameFi model, however, remains a challenge. User experience ranks amid the top struggles in the industry, mainly because of gas fees and the complexity of buying, owning and trading NFTs. “Charging users fees every time they transact or trigger a smart contract creates a disincentive to play,” noted O'Holleran, adding that “in order to appeal to the mass market, there’s a ton of work that needs to be done around usability.”
The reality is we are seeing a lot of money pour into the space. How this evolves in terms of development remains to be seen. Nevertheless, we know the potential money involved is into many tens of billions.
When looking at the asset capability of gaming, then adding in the DeFi component, we could see many hundreds of billions generated. This will dwarf the existing industry.
“We're witnessing the birth of many different economies with different distribution mechanisms as well as the development of different token models (single token, two-token, NFT-driven, etc.). Only time will tell how suitable and reliable each of these will be over the long term in open global markets,” Delphi Digital research analyst Sonny Tsiopani told Cointelegraph.
We are in a period of extreme experimentation. GameFi is in the earliest of stages. Individual wallets tied to decentralized exchanges will be a major boom. True ownership of assets taking gaming to a new level.
Hive Getting Involved
While there are still infrastructure shortcomings, such as the lack of smart contract capability, Hive is showing itself to be a strong choice for gaming. We see a number of games that have potential. With the expected development of a robust layer 2 node system, we could see things move to another level.
One advantage that Hive does offer is the ability to have fee-less transactions.
Ragnarok is a game many are excited about. There is an interesting twist that Hive plays in this scenarion.
The in-game assets will be purchased using the Hive Backed Dollar (HBD). The money raised from these sales will be placed into savings, earning 20%. This is where the prize pool comes from.
Hence, over time, the HBD in savings will keep growing, meaning that we will see an expanding reward pool each year. The principal enters and is not pulled out.
Where else can you see something like that taking place at the base layer. There is no counterparty risk or the jeopardy of a rug pull. Any game tied to Hive can utilize this same premise.
The next few years are going to see a massive expansion in this realm. Gaming is going to be the epicenter for crypto expansion. Gaming and tokenization are ideal together.
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Completely agree, it will still take some time but blockchain-based games will surpass centralized games and when that time comes it will be a real showstopper
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Revolution of finance has done more good with no harm. Unlike previous games where you play and don't earn the hive system offers gamefi which allows one to earn on play. Though I haven't tried it myself but I have a friend who is committed to it. Thanks for sharing
While I think it's possible, it will depend on the developers. The AAA game studios have been horrible with their launches as they tend to come out in either incomplete/buggy launches or bad gameplay decisions. However, once these get ironed out, you tend to be left with some decent gameplay. I just haven't seen the gameplay by crypto games to be better than these games yet. If it's fun and good, people will flock to it but I just haven't seen that just yet. Games like Splinterlands, tend to be very light on the gameplay and it tends to be more on strategy so it hasn't really proven itself yet.
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In due time I think this will become a reality, but it is going to be a while. I just don't see how gaming giants such as Call of Duty will ever be dethroned. I mean they just made a billion dollars their first week with their latest game MWII. Even with those absurd numbers, I will never forget that GameFI is and will become even more lucrative. I've always dreamed of having a game that I truly love playing daily and that rewards me for my time and effort rather than being nothing more than leaderboard bragging rights. That day shall come and it will be even more interesting to see it happen as the evolution of VR becomes more and more like movies and tv shows such as Ready Player One and The Peripheral.
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