5 Reasons Why Blockchain-based Gaming Economies Are The Future
Read the full article by Michael Nadeau here
Axie Infinity showed the gaming industry just a sliver of what blockchain-based gaming can achieve, and the industry is set to explode in the near future.
The gaming industry has been growing at a tremendous rate, one of the only industries that has benefited from the Covid-19 pandemic in a huge way. Most average investors figure gaming has to be doing well but most aren’t aware how well they actually are doing.
“The global gaming market is currently worth $180 billion — the fastest-growing form of entertainment globally. For reference, the global film industry is worth $100 billion and all North American sports combined are $73 billion in terms of annual revenues.”
Global gaming market revenue. Source: Bloomberg, Pelham Smithers, GamingScan.com
Experts predict that the number of online streamers of online games will rise to one billion by 2025 — one in nine people today.
ESports viewers in the United States. Source: MBA@Syracuse
Travis Scott did a live performance on the popular gaming platform Fortnite last April. It received over 12.3 million views and netted Scott over $20 million per TechCrunch and GamesIndustry.biz.
Five reasons why Blockchain-based Gaming Economies Are The Future.
Blockchain allows for gaming economies to grow organically. In some cases like Axie Infinity, users are paid to play. Many individuals in places like the Phillipines are earning several times their monthly incomes from playing the game. If you can get paid to play a game on a blockchain vs. not being paid to play on a non-blockchain game, which would you choose? As Charlie Munger says: “show me the incentives and I’ll show you the outcome.”
Public blockchains are open to all and permission-less. Practically anyone that has access to a cellphone with internet connection or a computer is welcome to participate. The bar for entry is typically higher in traditional.
Open Protocols Collapse and compress the cost of existing technologies
Ethereum is an open protocol. Anyone can build games on Ethereum. Lower bars to entry mean a more competitive market is on the horizon.
Decentralization
This means we should expect a future where there are blockchain games built on top of various layer-one blockchains, for example, Ethereum, Solana, Cosmos, etc. Users will be able to switch games with ease, and they will be able to bring their assets such as NFTs in the form of skins, avatars, or weapons with them. This is something that is not possible today.