How Blockchain Accelerates The Gaming Industry’s Growth
Games have always been a staple of entertainment for audiences of all ages. Whether it’s a console, mobile, or computer game, people can find something they like and spend countless hours on end playing it by themselves or with others through the internet.
We already know that the pandemic just increased the number of gamers, and that game investments and acquisitions soared during this period. When you combine gaming with another massive industry in blockchain, it’s only going to grow bigger, right?
It is projected that from 2021–2025 the gaming market will expand by $126.65 billion, representing a Compound Annual Growth Rate (CAGR) of 12.40% as per PR NewsWire.
According to a study by InvestGame, crypto/blockchain games received $476 million in funding in the first half of 2021. Only three firms accounted for ~74% of the total: Forte (which raised $185 million), Animoca Brands (which raised $89 million in the second quarter), and Mythical Games ($75 million).
The use of blockchain technology in the gaming industry allows players to exchange in-game assets with other players and make peer-to-peer transactions. In fact, many companies and developers alike have embraced this. Microsoft recently announced its intention to integrate blockchain features for their Xbox community.
Blockchain is aimed at empowering fast and secure payment networks, as well as enabling game developers to more easily monetize their gaming services. The integration of this technology creates new opportunities for gaming companies to scale.
CryptoKitties was one of the first projects that provided mainstream exposure for non-fungible tokens or NFTs. These are one-of-a-kind, collectible digital assets that exist on the blockchain. The Ethereum-based game debuted in 2017, allowing users to acquire, sell, and breed digital assets represented by cat avatars. (such as “Dragon,” a CryptoKitty that sold for 600 Ether in September 2018.)
The viral success of CryptoKitties marked a new era of digital assets in gaming. As a result, game creators are incorporating digital asset functionality into their products and tokenizing in-game digital assets. As it stands, there are about 2.6 billion people who play video games, with thousands of studios catering to this market.
Until recently, gaming was a highly centralized activity, with all data, assets, and in-game money generally contained to the game from which those assets originated, and it follows that the producers maintain complete control of in-game goods. With the advent of blockchain, a decentralized gaming future may emerge, where goods earned or purchased in one game could be transferred and utilized in another, giving digital in-game assets real-world, tangible worth. Think being able to buy an item in one game and being able to use it in another. This will pave way for the eventual metaverse.
How Facebook, Twitch, and Youtube are accelerating its growth
According to current viewing data from April, May, and June of 2021, there were 153,000 active broadcasters on Facebook, as well as an estimated three million broadcasters working on Twitch in July alone. Compared to YouTube’s Gaming and Mixer, Twitch continues to lead the way in both viewing and streaming times. From a macro perspective, this indicates that streaming platforms are helping games gain much needed exposure while also indirectly cultivating their communities.
League of Legends, DOTA 2, Valorant, Apex Legends, and, not surprisingly, Fortnite are among the most popular games, with e-sports organizations even building professional teams around them. In fact, one of the world’s most popular personalities on Twitch, Tyler “Ninja” Blevins made $500,000 a month at his peak by streaming Fortnite.
“Among Us” was released for iPhone and Android in 2018, which met a lukewarm response. However, in 2020, famous Twitch streams began playing it, bringing “Among Us” to the attention of millions of new gamers during the pandemic.
Minecraft is another example of a game that has built a massive following over the years. The best part is it has an option for crossplay, which means that you can play with friends on any program. This platform is considered the go-to for younger audiences, along with similar titles like Roblox.
In Animoca Brands’ The Sandbox, which as the name implies is a user-generated sandbox environment where players can create their own NFTs. They can buy and sell these goods in the same way that they can in games like Second Life, Land, or virtual real estate, where in-game assets can be pre-sold by corporations for players to develop.
Players also have the chance to earn NFTs while playing games, such as Axies Infinity, which promotes the play-to-earn concept. Axies is able to distribute money to players in part because of the fees it receives upfront. As of the time of this writing, putting together a team of three Axie characters may cost upwards of $1,500. In May 2021, within a span of a week, the player base spent almost $7 million on in-game purchases.
Streamers, influencers, and professional organizations can take advantage of cryptocurrencies as well by tokenizing their brand. BitFans allows creators in the gaming industry to mint Creator Tokens, which serves as a way to provide exclusive perks, content, and personal interactions with fans. Creators on the platform may choose to host private tournaments with their token holders, lobbies with fans, and even provide exciting incentives such as the opportunity to be trained or coached by pro players.
Forming a digital fan club built on the backbone of a community token provides a way for brands to expand their reach and influence. This incentivizes community members to help drive growth, as the tokens are utilized for various purposes within the club.
Reach out to the BitFans team if you are interested in seeing how tokenization can unlock value for your brand. We are a community of like-minded individuals that are passionate about solving problems in the creator economy and providing ways for personalities to better connect with their fans. Find us on any of our social channels using this link: https://linktr.ee/bitfans