A new era for blockchain may be emerging in the gaming world. Major global brands such as Formula 1, NBA, UFC and classic video game maker Atari are embracing this technology when it comes to creating games. And the huge fan base of these companies has the potential to expand several times the number of people using cryptoassets.
In order to get a better view, the size of this potential audience, the popular Fortnite and Minecraft games add up to 300 million unique monthly users, while Formula 1 reached 471 million unique viewers last year, according to Cointelegraph. The numbers of game users comfortably surpasses the 16 million people with blockchain wallets. This group gets even smaller when compared to the NBA’s reach: more than 1 billion people.
Gaming market generated US$150 million in revenue in 2019
This audience helped generate revenues of US$150 million in the gaming market last year, giving na overview of the potential of this market. And for those who work in the industry, NFTs (Non Fungible Tokens) should be the flagship of this movement.
But what are these NFTs, or Non-Fungible Tokens? They are tokens with special features and that are not interchangeable with each other. For example: if someone lends you R$ 100, you will not return the same bill, but the value of the two is the same. They are therefore interchangeable (fungible). But on the other hand, when it comes to a rare LP, perhaps with the musician’s autograph, he can’t be traded for a mere copy of that record. That means, it is not interchangeable, which makes it a non-fungible good.
So the idea is to go against what is usual in the virtual environment: instead of something that can be replicated several times (and consequently without great value), the idea is to value what is unique, a kind of collector’s item. And thus charge extra for rare items that may have their uniqueness certified.
Blockchain games attract millions
One of the companies betting on this is Galaxy Interactive, a US$ 235 million investment fund. The company believes that virtual goods give us status and define our identity in the same way as equivalent “physical” products. They also think the trend is that the value that is given to items in the online world equals to what is given to products created outside it. Additionally, in the assessment of Sam Englebardt, co-founder of Galaxy Digital and head of the Interactive division in the brands area, the adoption of this technology will take place in games and content production.
This system has already been used by Crypto Kitties. Although 3 million people tried, only about 100 thousand were able to buy the virtual kittens offered (many of them had never had contact with cryptocurrencies). Now, their feline NFTs can breed with each other, and the owners have the option of selling the “puppies”.