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Non Fungible Tokens NFTS

Blockchain Games: NFTs as an Integral Part of In-Game Tokenomics

As digital artists onboard blockchain technologies in order to sell NFTs, we can expect to see a major shift in the video gaming industry as well. Just four years ago, Jamie Dimon, the head of one of the world’s largest banks, JP Morgan, called bitcoin (BTC) a fraud. In the current year, JP Morgan’s top…

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Blockchain Games: NFTs as an Integral Part of In-Game Tokenomics

As digital artists onboard blockchain technologies in order to sell NFTs, we can expect to see a major shift in the video gaming industry as well.

Just four years ago, Jamie Dimon, the head of one of the world’s largest banks, JP Morgan, called bitcoin (BTC) a fraud. In the current year, JP Morgan’s top executives call for involvement in cryptocurrencies.

At the same time, their financial analysts project bitcoin to rise above $100,000 and supplant gold as a real asset hedging against inflation. Needless to say, the past year has been tremendous for bitcoin.

Bitcoin (BTC) price over one year: TradingView

As the mainstreamer of blockchain technology reaching over one trillion market cap, bitcoin opened the entryway to the entire ecosystem. Meanwhile, ethereum’s (ETH) blockchain has one big advantage — programmability in the form of smart contracts.

These computational pieces of code auto-execute on the Ethereum blockchain, making it possible to create:

  • automated market makers (AMMs);
  • decentralized exchanges (DEXs);
  • borrowing and lending DeFi protocols;
  • yield farming — earning interest rates based on stakes in liquidity pools within AMMs.

Altogether, the decentralized finance sector currently holds over $40 billion locked-in assets. This accounts for two major forces popularizing blockchain technology — bitcoin and DeFi dApps.

A third major blockchain driver has also seen deep market penetration in the last year — non-fungible tokens (NFT). These are digital collectibles from a variety of sources, minted by smart contracts on NFT marketplaces as unique, incorruptible, and traceable.

In fact, NFTs might be more important to mainstream blockchain than DeFi protocols emulating banking products and services. The latter can be quite a boring subject, but when popular artists like Beeple sell a single NFT for $69 million, the power of such sensationalism cannot be overstated.

We are already seeing this effect, as even Taco Bell fast food chain joins the NFT party.

Interest over time for “NFT”: Google Trends

The constant parade of headlines, in which popular figures make astronomic NFT sales, will apparently expand the usage of dApps running on Ethereum.

This brings us to the fourth driver of blockchain market penetration — video games — inextricably linked to NFTs as most of them are gaming related.

Where does blockchain fit in the gaming industry?

While NFTs provide the most recent bread and butter of journalism — sensationalism — video games have a much longer history for blockchain use cases in the form of microtransactions.

Nowadays, the biggest games are so-called free games with an elaborate monetization model. Fortnite is leading the charge in this arena with a $2.4 billion revenue in 2018 and $1.8 billion in 2019.

However, large games like Fortnite and Roblox have in-game currencies that serve as a bridge to fiat currency conversion, V-Bucks, and Robux, respectively.

They have a fixed price in relation to the U.S. dollar and other fiat money. For example, Fortnite’s 1,000 V-Bucks would cost you $7.99, while Roblox’s 800 Robux would take $9.99 from your bank account, at the time of writing.

However, such mainstream super-popular games still don’t have full-blown marketplaces. Mostly, they rely on item shops and selling of game accounts via Discord servers. Likewise, there are thriving black markets for Roblox (RBXPLACE, RBXFLIP, RBLXSHOPPING).

From this, we can conclude that:

  • There is a great demand for decentralized marketplaces, which can run without having to rely on someone buying and maintaining a server.
  • There is a great demand for a modular marketplace solution that can be plugged into a game, so that developers don’t waste development resources on creating something from scratch, over and over again with each new game.
  • Developers lose money when players go to grey markets to trade in-game assets, so it is in their interest to use proper DeFi marketplaces.
  • When developers are on large, centralized, publishing platforms, they also lose money when selling DLC and other in-game items. For example, Steam’s community market fee transaction is currently 5%. In contrast, an NFT marketplace like Rarible takes 2.5% off sales.

Not only is blockchain ideally poised to supply such solutions, but NFT marketplaces can already be plugged into a game’s lifecycle.

NFTs as a game funding model

NFTs can themselves serve as an engine of game development. Developers receive their much-needed funding, while buyers of their NFTs get a piece of gaming history, which may become small fortunes if the game turns into a successful venture.

Bear Games is one such company, fusing blockchain with game development. Their initial NFT offering (INO) raised $100,000 worth in NFTs for their upcoming DeFi game called BEAR NAVY Vs. Pirates (BVP).

DeFi games are types of blockchain games that have a gamified yield farming system, so it doesn’t feel like a chore when you earn money via interest rate.

Pirate Assault Warriors

The raised funds via NFTs will not only go into BEAR NAVY Vs. Pirates but also into a more ambitious project. “Games and Gain” will be the team’s decentralized gaming platform, hoping to become the go-to place for cryptocurrency and decentralized finance gaming. Self-explanatory, the upcoming games on this platform will net you gains while gaming.

They will follow the principle of play-to-earn as you receive your share of fungible tokens accessible to players holding VIP PAW NFTs. Of course, the fungible tokens are swappable on a DEX like Uniswap, which can then be off-ramped into fiat currency.

This certainly represents a more elegant solution than selling accounts and opening black marketplace Discord servers.

Harnessing NFTs to achieve massive gains

While Bear Games is just gaining momentum, other games have already harnessed their NFTs to achieve massive gains. Sky Mavis studio, with their Axie Infinity, is exceptionally popular.

It owes this to a pleasant and cheerful artistic style reminiscent of the mega-popular WAKFU franchise. More importantly, Axie achieved $9.6 million in trading volume, earlier this year.

In Axie Infinity, players build kingdoms while managing an ecosystem of wild fantasy creatures called Axies. Both land plots and creatures can be bought as NFTs.

The land plot you see above topped the charts as the fifth most expensive NFT sold so far. However, this is another blockchain game that can become a source of daily income.

Thanks to Axie’s in-game items called SLP (Small Love Potion), which you can earn by playing daily quests, you can then sell them on Uniswap for other tokens that lead to fiat currency.

This is the power of blockchain games — in-game resources equate to real money. The same cannot be said for previously mentioned gaming studios that seek and destroy unsanctioned item marketplaces.

Cometh is a similar DeFi game but with a twist. Placed in a sci-fi setting reminiscent of 1980s games, the player is in charge of astrominers, with the goal of getting close to bountiful asteroids, which are randomly generated by a smart contract called Cometh Generator.

Instead of mining ore from them, you mine tokens until you exhaust the asteroids.

Each astrominer is also an NFT, varying in its capability to mine tokens. So far, Cometh’s top player earned $8,172.

As you can see, each DeFi game has its own style and way to earn real money via swapped blockchain tokens. However, the big question is, how popular are they, and what can be done to make them more enticing?

The iconic Atari certainly believes it can leverage nostalgia to prosper within the new space of NFTs and cryptocurrencies, with its released Atari VCS mini-console.

Blockchain games are still a niche product

When we look at integrating blockchain with gaming, it becomes apparent that niche projects like DeFi games leverage a fraction of the gaming audience compared to mainstream games.

User activity and trading volume over 30 days: DappRadar

For example, the tenth game ranked on the largest gaming platform, Steam, has more average monthly players than the first game ranked on dApps’ list of games.

While this is not too bad considering that dApps only took the public spotlight during the last year, in this transitional period, it will make more sense for developers to integrate cryptocurrencies and smart contracts in a modular manner.

Without directly interfacing blockchain infrastructure with games, you can still use your BTC wallet to buy games and cosmetics on all the most popular platforms. Paxful allows you to buy discounted gift cards with bitcoin, which you can then redeem in the stores.

Nonetheless, this represents the most superficial contact with cryptocurrencies. It is clear that game development studios would benefit from the lower costs and greater control DeFi protocols present.

At the same time, investing development time in learning different dev stacks unrelated to gaming presents an expenditure that may tilt the balance for the foreseeable future.

Breaking through blockchain isolation

To make in-game monetization and tokenization readily available, developers will most likely start to take advantage of third-party networks. One of the most promising ones is the Enjin coin (ENJ).

Launched in 2018 by Maxim Blagov and Witek Radomski, Enjin makes it possible for game developers to tokenize their in-game assets on the Ethereum blockchain.

Its maximum supply is one billion ENJ coins, presenting itself as a store of value. Indeed, every NFT token minted on the Enjin blockchain absorbs ENJ coin, which is then removed from circulation.

This means that Enjin is deflationary, just like bitcoin, gives NFTs a reserve value, and provides liquidity. Furthermore, if you don’t want to hold an in-game asset anymore, it can be “melted,” which returns its value in ENJ tokens.

Of all utility tokens currently rising in popularity, Enjin seems like the most effective solution for in-game asset tokenization and monetization.

However, this still leaves one big issue – blockchain isolationism. Last month, we saw the first real-world scenario of linking blockchain to non-blockchain assets. Synthetix platform uses Linkchain (LINK) to connect the two different infrastructures by utilizing oracles, third-party services that feed on-chain smart contracts with off-chain data.

A major blue-chip stock, Tesla, has been listed on Synthetix as a synthetic stock. Meaning, you can now trade this stock on a permissionless, decentralized protocol that even allows for shorting. Needless to say, such a development eliminates the deplatforming of retail traders as it happened with Robinhood.

Kain Warwick, a co-founder of Synthetix, had already announced a crypto NFT game that will take advantage of the platform called Illuvium.

With the deployment of these technologies, it is not difficult to see that adoption among game developers will present itself as the main obstacle. In the meantime, as Enjin and Synthetix become more popular and easily pluggable into the video games pipeline, blockchain’s main feature – decentralization – will still pose an unmatched value proposition.

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All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Non Fungible Tokens NFTS

Tokenizing Mining Hash Power With the Hashmix Team

BeinCrypto spoke to WB, the co-founder of the HashMix team. We discussed the increasing complexity of mining and how they are making NFTs of hash power. The NFT boom is currently underway, but it is mostly focused on tokenizing collectible and art items. The HashMix team is looking to tokenize something more directly related to…

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Tokenizing Mining Hash Power With the Hashmix Team

BeinCrypto spoke to WB, the co-founder of the HashMix team. We discussed the increasing complexity of mining and how they are making NFTs of hash power.

The NFT boom is currently underway, but it is mostly focused on tokenizing collectible and art items. The HashMix team is looking to tokenize something more directly related to the crypto world – hash power.

To do this it implements several universal decentralized protocols so that users can trade with their hash power. This also includes lending and swapping. It wants to avoid oversold hash power, counteract a lack of liquidity and bring more flexibility to mining. 

Much like bitcoin’s founder Satoshi Nakamoto, the team currently operates anonymously. This is partly due to some of the team living in China. However, they have said they may give up their anonymity in the future.

“Our core team members have experience with the various forms of blockchains, PR, marketing, mining. This is why we can make this great combination of mining power, NFT, and DeFi.”

Addressing mining issues

Crypto mining has no shortage of issues. These range from internal problems relating to liquidity to external image problems, like the recent backlash against its environmental impact.

“Mining has always been an important part of the cryptocurrency industry. And has a very long history, as long as bitcoin’s history itself. It’s also one of the most profitable industries in the ecosystem. So more and more people want to be part of it.”

“However, the crypto mining industry has been played by centralization and liquidity problems. Although cloud mining allows investors without expensive hardware to join mining, it also misses to provide liquidity and solves only a piece of the puzzle. So HashMix is designed to solve all these problems,” explains WB.

Traceability, liquidity, transparency

To respond to these issues, HashMix’s tokenization protocol converts mining power for any proof of work (POW) blockchains, such as ethereum or bitcoin, to NFTs.

“That brings us traceability, liquidity, transparency. This prevents the risk of overselling and fraud and effectively combines the different hash parts of different cryptocurrencies based only on very easy-to-use NFTs.

“We create protocols for exchanges, trading, and lending. This enables everyone in our ecosystem, from miners to investors with hash rates to DeFi participants, to easily buy and sell hash power and access numerous financial options such as stake and liquidity reduction. For the first time, we are bringing hash power and real-world mining together using the HashMix protocol,” WB says.

Proofs of hash power

HashMix works by utilizing multi-signature, smart contract, and cross-chain technology to generate and submit proofs of specific hash power to the blockchain.

It is from these proofs that the NFT tokens are issued. As a result, hash power can circulate freely while ownership is ensured. However, these are still just plans. HashMix is still on its roadmap to a public platform.

“When the NFT market is fully up and running, miners can sell their NFTs for crypto or swap their NFTs to switch to other mining functions, while investors can buy the NFTs to get the mining rewards of the underlying hardware.”

In June, more NFT products for mining are expected to come onto the market so that trading and exchange functions are also possible.

“We will also introduce the decentralized incentive mechanisms that enable people to participate in the validation of the mining NFTs and earn HSM tokens as a reward so that the protocol can be maintained and operated decentrally.”

“In terms of incentives, miners, coin/token holders, and investors can join the HashMix ecosystem and find a way to earn rewards in HSM by lending and borrowing coins/tokens, trading hash power tokens, NFTs, and mining power bet and participate in liquidity. Early adopters and loyal users receive additional rewards,” WB says.

DeFi lending for miners

As part of their roadmap, HashMix also intend to introduce a lending function to the platform.

“We would like to become the most attractive filecoin lending platform so we can attract more mining powers and more users,” says WB.

Miners will be able to secure their filecoin mining service and borrow FIL from the platform.

“We want to attract early participants to the platform, as this offers an attractive return. After that, we will launch our first mining NFT product that same month,” says WB.

“Through this product, miners can tokenize their Filecoin storage mining performance and receive corresponding NFTs.”

“At this point, all mining power previously secured in the loan will be tokenized, and miners will be able to issue new mining power NFTs themselves. The users can receive and transmit the NFTs like other cryptos, use them as collateral on our platform and participate in DeFi options,” says WB.

While the platform is not yet public, these plans have yet to be tested on a large scale. How these interactions will play out for miners wanting to do a bit more with their hash power.

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Non Fungible Tokens NFTS

Juventus F.C. Expands NFT Offering With NFT Pro Partnership

Italian professional football club Juventus F.C. has announced their arrival on the non-fungible token (NFT) train.  In a post on their official website, the club revealed its digital content would first become available on June 27th. They professed themselves a leading figure in the world of collecting, referring to NFTs’ unique validation style as ideal…

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Juventus F.C. Expands NFT Offering With NFT Pro Partnership

Italian professional football club Juventus F.C. has announced their arrival on the non-fungible token (NFT) train. 

In a post on their official website, the club revealed its digital content would first become available on June 27th. They professed themselves a leading figure in the world of collecting, referring to NFTs’ unique validation style as ideal for that same sector.

The post confirmed that their first NFT will be a three-dimensional, high-definition replica of the team’s home shirt for the upcoming season. It will commemorate ten years since the inauguration of Allianz Stadium, Juventus F.C.’s home ground. The NFT will also pay tribute to some of the team’s most legendary players. Juventus’ current team members will sign the shirt NFT.

A tweet from the club’s official Twitter confirmed the shirt will be auctioned from NFT Pro. However, the team added in their statement that they would reveal the full details nearer the auction date.

At the end of their official statement, Juventus also clarified their awareness of blockchain’s energy consumption and environmental impact. As such, they revealed that they would utilize the sustainable Palm protocol for their NFT collection.

Sport world continues to embrace crypto

This announcement comes as the latest in a string of crypto sector partnerships that Juventus has announced recently. Back in February, the Turin-based club signed a licensing deal with blockchain fantasy football game Sorare. A game that has since released an NFT collection of its own, in collaboration with the French national football team.

Sorare has secured over 140 licensed teams in total, including Juventus, but also the likes of Bayern Munich, Liverpool, and Real Madrid. 

Meanwhile, a number of major football clubs such as Manchester City, AC Milan, and FC Barcelona have been attempting to recoup some of their losses that the COVID-19 pandemic inflicted. More specifically, by releasing digital tokens for fan engagement. However, recent reports revealed that not all fans are as engaged as the teams may like, with the fan tokens meeting divided opinions.

Physical sport is not the only sector partnering up with crypto, but e-sports too. Sam Bankman-Fried’s exchange FTX entered into a 10-year $210 million commitment with the TSM e-sports brand. A deal described as the largest in e-sports history. 

This announcement came around the same time that the NBA stadium formerly known as the American Airlines Arena became the FTX Arena. At the time, FTX revealed the $21 million a year they will be paying TSM is twice the amount paid to rename an NBA stadium.

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Non Fungible Tokens NFTS

‘We need scaling solutions that work,’ Says RioDeFi CEO, James Anderson

BeinCrypto spoke to James Anderson, CEO of RioDeFi, about his platform, where DeFi needs to go for mainstream, and the benefits non-fungible tokens (NFTs) will have in the future. DeFi is growing. However, those who are outside the crypto world are likely to be confused by this new experience of finance. As a result, many…

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‘We need scaling solutions that work,’ Says RioDeFi CEO, James Anderson

BeinCrypto spoke to James Anderson, CEO of RioDeFi, about his platform, where DeFi needs to go for mainstream, and the benefits non-fungible tokens (NFTs) will have in the future.

DeFi is growing. However, those who are outside the crypto world are likely to be confused by this new experience of finance.

As a result, many platforms are growing to meet the need to connect the “average” person to DeFi opportunities. This is the goal of RioDeFi.

The platform calls itself the “next frontier of finance,” and CEO James Anderson is passionate about this solutions-focused approach.

DeFi for everyday people

“Our main mission is to bridge traditional and decentralized finance. We do that by connecting blockchains with financial institutions. Some of the things we’ll be building are very centralized finance.”

“A lot of people found it difficult to utilize the various DeFi protocols because they aren’t quite user-friendly. For many people, the crypto space can be very overwhelming,” he says.

As a result, RioDeFi is working to take the confusion out of setting up a wallet and dealing in crypto.

“So we wanted to create a solution. So for a real wallet, we have an OAuth login function that’s coming online very soon that will allow people to use their Gmail, their Facebook, Reddit, and other social media accounts. Basically, create a wallet and manage their private key in a decentralized way. But using those accounts so that they’re not having to back up this phrase that they’re not really sure of and they don’t know how to do it,” he explains.

“We also think that the future of blockchains is all about interoperability”

Alongside making connecting to the DeFi space easier, Anderson and his team aim to create better interpretability. They consider this key to growing blockchain and DeFi use into the future.

“So, the sort of traditional blockchains have been very siloed so bitcoin you can only interact with bitcoin right, Ethereum you can interact with Ethereum, and then any of the Ethereum based tokens these ERC 20 tokens, but if you want Ethereum to talk to Cardano or to talk to Polkadot or something else like that’s not happening currently.”

“So we actually built RioChain on Polkadot’s substrate framework. It’s this framework for blockchain interoperability, and so as that ecosystem grows, it allows blockchains to talk to each other and share messages and share assets across these, these substrate-based blockchains.”

Building a bridge with C-DeFi

“It’s funny because Binance created this smart chain. They call it C-DeFi like centralized DeFi. Which kind of an oxymoron, in some sense. But at the same time, I understand why they did what they do like there are benefits to this kind of system.”

For Anderson, this “C-DeFi” offers the opportunity to connect the worlds of traditional finance and DeFi in the most straightforward way. Through this connected approach, he sees his platform an opportunity for both newbies and DeFi hardliners.

“Things like account recovery options, like how are you going to have new people in cryptocurrency, if they lose their password and then all their funds are gone right. So for some people, that’s okay, and they would like that because they want to be their own bank, but for other people, that’s a little bit too much, and so we want to have both options for the people,” he says.

NFTs on DeFi

Alongside DeFi, NFT has been among this year’s biggest crypto buzzwords. For Anderson, these tokens offer utility, for collectibles and financial assets.

A new project building on the RioDeFi platform encapsulates this combination. It aims to provide a luxury good NFT platform for those with high-priced goods.

“We haven’t announced this project yet, but it’s in our incubation hub, and they’re going to have these products such as luxury goods. So that could be anything from like a Chanel bag to a Rolex watch, even a car like a classic car or gold bars even,” he says.

The platform makes it possible for owners to show off their luxury items through verified ownership. In addition, it also offers a way to leverage those goods for money.

“So you could take these luxury assets, put them into custody, mint an NFT based on them, and then instead of taking out a loan via a pawn shop, what if instead of the loan being provided by this, this particular pawnshop with their bank connections, what if it’s provided by a decentralized pool of liquidity providers who want interest on a loan,” he explains.

“At the end of the day, if the loan is defaulted on, someone can go and claim the Rolex, one of the lenders, or it can go into a liquidation auction it can be sold into cash or stable coins. Then it can be a global pool of money that can support these kinds of things.”

Practical use of NFTs

The value of NFTs through use cases is clear to Anderson. The space for growth and opportunity beyond the current hype is vast.

For him, there are areas where NFTs will really show their strength and utility. These include real estate, sovereign identity, and expansion in financial assets.

“In the future, I think there’ll be more of these sort of self-sovereign identities that the various companies will give the authorizations or the government bodies will authorize certain information about my identity. Then I have the opportunity to share that or not with any given corporation or government body.”

“As more people get these sovereign IDs that they manage. They can tie that with, let’s say, a financial institution or bank that’s managing their loan for their property deed. And so all these things that are right now, stored, physically, and also digitally, can be stored digitally but within NFT. What that will enable in the future, for example, is easier decentralized loans,” he says.

Ultimately, Anderson sees NFTs as a way to store ownership in a world that is becoming increadingly digitizied.

Real estate as a future use case

When it comes to real estate, NFTs are already slowly showing their use cases. Recently, the Founder of Tech Crunch, Michael Arrington, sold his Ukraine apartment as an NFT.

For Anderson, the ability to make property deeds into NFTs opens up a world of opportunity.

“So right now the deeds are kept in a local government bureau and different offices depending on where you are in the world. But then that asset can be stored for example as an NFT, so you could have the file, the digital version of the files stored on IPFS or centralized servers, it could be on a mix of servers. So it’s very secure and backed up. You have that deed, available as an NFT, and whoever holds the deed holds that property essentially. You can then have that custody right with the bank in the future,” he says.

For those who don’t want to refinance with a bank, NFTs could make it possible to refinance from the community.

“And so the community could, for example, lend the money they get maybe a higher interest rate than what they could get on other assets. It’s a relatively low-risk thing, potentially, because your credit score could be tied to your ID. The deed is on this NFT and all of that is trackable on the chain, on blockchain. That can all be verified,” he says

“And then, the loan can happen automatically, and if I miss my payment then I lose my deed, right, the property, or it goes into a default process something, someone could liquidate the property, and then the standard process then applies right.”

Anderson acknowledges that these applications are still off in the future but sees the potential for their use.

“We need scaling solutions that work”

However, for Anderson, mainstreaming and acceptance requires better scaling solutions for DeFi, NFTs, and blockchain.

“I think with these NFTs and everything else. It’s really important that they be done efficiently.”

“The gas fees are often quite high. So the transaction fees are quite variable. Well, sometimes it’s the network’s very congested. Things can get stuck, so ETF transfers that fail or don’t go through for whatever reason because someone set the gas too low because it was really low one second ago. Then it got really high and this can actually create a lot of friction for people to buy NFTs,” he explains.

For Anderson, there are multiple chains on offer which can cause confusion. RioChain is trying to connect all of these while also offering its own solutions as well.

“We need scaling solutions that work.”

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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